Windstream shook the telecom and financial community Tuesday when it announced that it's spinning off some of its network assets into an independent Real Estate Investment Trust (REIT), then leasing them back to remove a layer of federal tax liability.
Windstream is enhancing its bond with its managed service customer base by making Avaya's Aura Unified Communications (UC) solution as a cloud-based offering available on a national basis via its Unified Communications as a Service (UCaaS) product.
Windstream got the attention of the telecom world and financial community on Tuesday when it announced that it would spin off parts of its network assets into an independent Real Estate Investment Trust (REIT). Not surprisingly, this development quickly fueled speculation that other service providers could, or are considering, a similar move.
Nasdaq shares for Windstream Communications' holding company ended trading Tuesday, July 29 up 12.35 percent after the company revealed that it was spinning off its copper and fiber assets into a real estate investment trust (REIT) and leasing them back.
Windstream is moving to spin off a number of its copper and fiber assets into a publicly traded Real Estate Investment Trust (REIT), a move it says will enable it to lower debt by nearly $3.2 billion while accelerating its broadband and IP-based network transitions.
Windstream Communications will be providing enhanced fiber connectivity to Fort Campbell and Dover Air Force base thanks to a $3 million contract it signed with the Department of Defense's Defense Information System Agency (DISA).
Consolidated Communications' move to acquire fellow independent telco Enventis for $350 million may not be on par with the blockbuster deals its independent ILEC counterparts CenturyLink and Windstream have made in recent years, but it's significant in that it is a sign of another smaller telco branching out of its all-voice service roots.
AT&T's recent revelation that it is going to work with cable operators to test their HFC-based DOCSIS products for small-cell-backhaul deployments shows that wireless operators want an arsenal of approaches in their toolkit.
Windstream told investors that the broadband stimulus awards it received from the USDA Rural Utilities Service (RUS) will enable it to reach 75,000 rural households that up until now have had no broadband service.
While his company is well aware that a newly combined Comcast-Time Warner Cable could have a competitive impact on its markets, Jeff Gardner, CEO of hybrid telco/CLEC Windstream says he's not concerned that the large conglomerate will significantly affect Windstream's primary large multi-site commercial sector.