What You Need to Know about CenturyLink’s Broadband Business



CenturyLink’s broadband customer acquisitions

Now let’s take a look at the performance of CenturyLink (CTL) in the broadband segment, which is a key growth driver for the company. In Q1 2018, on a net basis, CenturyLink lost 58,000 broadband customers. CenturyLink’s broadband customers decreased by ~1.1% sequentially to reach ~5.0 million at the end of Q1 2018. The telecom company plans to address these customer losses with higher-speed solutions and its simplified customer-friendly “Price for Life” offer.

CenturyLink focuses on bundling and retention

CenturyLink has been refocusing on acquiring higher-value bundle customers and putting less emphasis on stand-alone broadband customers, as bundled offerings provide a net positive NPV (net present value) driven by lower churn characteristics.

The top cable companies in the US continue to show strong momentum in the broadband space with Comcast (CMCSA) and Charter (CHTR) adding the most broadband customers over the last few quarters given the higher speeds. In Q1 2018, Charter added 331,000 net broadband customers, whereas Comcast added 379,000 net broadband customers.

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