T1 and MPLS.com

Ethernet equipment maker Hatteras Networks has landed a plum contract with rural LEC Windstream Corp. (WIN).

Windstream, in its new efforts to move away from consumer landline services, is emphasizing business communications products – hence its takeover of CLEC NuVox Corp. To that point, it’s installing Hatteras Ethernet-over-copper and TDM gear so it can provision up to 40gbps of bandwidth.

“Our modular solution affords Windstream the long-term flexibility to pursue a gradual, pay-as-you-grow strategy while ensuring that its customers stay availed to the leading edge of Ethernet service innovation,” said Kevin Sheehan, CEO of Hatteras Networks, in a prepared statement.

Windstream sells IP voice and data services, along with phone systems and equipment, to companies and government agencies. Of course, it also still provisions phone, Internet and television access to residential users; but the company is reducing its reliance on that sector as more people cut the cord, for which the wireless migration, high unemployment and a weak economy all are to blame.

To that point, Windstream executives said on Feb. 28 during a Telarus-hosted conference that Windstream is not taking over NuVox to dismantle what works. Rather, Windstream wants its employees to assume NuVox’s competition- and business-focused ways of thinking so the rural LEC can grow past its revenue-losing legacy residential base and into the profitable business-services market. And NuVox staff are thrilled.

Windstream’s installation of Hatteras infrastructure should help the new Windstream-NuVox reach that sales goal. The deal with Hatteras includes an Ethernet switching and labeling platform for delivering up to 100mpbs of symmetrical services; customer premise equipment for Ethernet-over-copper; demarcation devices for Ethernet over TDM; and repeaters for interconnecting with enterprises or mobile towers.

NuVox employees learned this week that less than 60 people will lose their jobs as part of the telecommunications company’s sale to Arkansas-based Windstream.

The jobs will be spread through various sectors of the company and will take place over the next few weeks, said Brent Whittington, Windstream’s chief operating officer.

Not all of the 60 jobs will come in Greenville, he said. Some will be in other parts of NuVox’s locations. NuVox has 700 people in Greenville and 1,700 across the Southeast.

However, Whittington said he foresees future job growth for the company as Windstream moves all of its business service customers to the Greenville offices.

Windstream purchased the Greenville-based NuVox this week for $647 million. It will soon rebrand the downtown offices, which are split between 90,000 square feet of space at the corner of Main Street and McBee Avenue and 85,000 square feet of space on four floors in the Landmark Building, as Windstream.

He does not foresee the company moving into one large office space downtown.

Windstream started courting NuVox officials, who were not looking to sell, during the summer as a way to grow its business service sector, Whittington said. NuVox did roughly $565 million in revenue last year and has 90,000 customers in 16 states.

Many telecommunications companies prefer to purchase existing businesses as opposed to battling them for potential clients because of the capital investment of starting a business in a new region.

In NuVox’s offices in the Landmark offices, there are banks and banks of computer processors, hundreds of employees in a call center and a mission control center where staff monitor network lines 24 hours a day.

A company couldn’t build that kind of network over night, so it makes more financial sense to acquire an existing firm, Whittington said.

Windstream is an S&P 500 company with about $3.7 billion in annual revenues. Windstream provides phone, high-speed Internet and high-definition digital TV services to customers in 21 states.

NuVox was started in 1998 as TriVergent and provides telephone and IP networks for businesses. By 2004 it was known New South and merged with NuVox, which was then based in St. Louis.

WindStream and NuVox delivers T1 lines, Metro Ethernet Connections, Etherloop technologies as well as MPLS. For more information on this strong company call Jonathan at 615-620-5223

‘Great strategic fit…very strong company’ boosts WIN to 21 states, about $3.7B revenue

Windstream today completed its acquisition of NuVox, Inc., a privately held competitive local exchange carrier based at Greenville, S.C., in a transaction valued at approximately $647 million.

Windstream acquired approximately 90,000 business Customers in complementary markets in 16 states across the Southeast and Midwest, providing the company expanded reach to focus on small and medium business growth opportunities.

The acquisition advances Windstream’s strategy to grow broadband and business revenues, which now represent more than half of the company’s annual revenues – approximately $3.7 billion on a pro forma basis, which includes the acquisitions of NuVox, Lexcom and D&E Communications. Windstream now operates in 21 states and has approximately 8,800 employees.

“NuVox is a great strategic fit for Windstream,” said Pres.-CEO Jeff Gardner. “The NuVox markets are contiguous to our properties and the transaction bolsters our strategy to focus more on the business Customer,” he said, adding, “NuVox is a very strong company that has steadily delivered revenue growth and improved margins. These markets have the potential for good growth opportunities in the future.”