Let’s analyze CenturyLink’s (CTL) spending on capital expenditures (or capex). In order to boost the network, the telecom company invests in capex. Wall Street analysts expect CenturyLink to spend ~$0.6 billion on capex in 3Q17.
In 2Q17, CenturyLink spent $0.83 billion on capex, up from $0.65 billion in 2Q16. The major reason for this growth in capex was driven by investments in its network to enhance speeds. CenturyLink also improved its fiber-optic connectivity to compete with Comcast (CMCSA), Frontier Communications (FTR), and other cable firms in the market.
CenturyLink’s management cited ongoing strength in Ethernet, SD-WAN (software-defined WAN), and MPLS (multiprotocol label switching) products.
Expected capex investments in 2017
In 2017, CenturyLink’s management expects to spend ~$2.6 billion on capex. Frontier Communications and Windstream (WIN) are expected to spend ~$1.2 billion and ~$0.84 billion, respectively, on capex in fiscal 2017.