Windstream sells distribution business

Until this year, network equipment supply and distribution units represented an interesting sideline business for both Embarq and Windstream Communications, two of the largest independent telcos around. But, Embarq sold Embarq Logistics to KGP Communications in advance of its acquisition by CenturyTel being completed, and now Windstream has sold its distribution unit to Walker & Associates.

Such distribution units helped the telcos that owned them build out and maintain their networks, but they also served other telco customers. The nature of the rural telco business has always meant that it would be unlikely for such distribution units to work for customers that were direct competitors of the owners, but perhaps rural consolidation is changing things. Giving these units greater independence probably will free them a bit to realize greater returns from other telco clients.

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KGP bought Embarq Logistics earlier this year