Windstream to Optimize Last Mile Network to Reduce Cost

Windstream Holdings Inc. WIN, a leading rural local exchange carrier in the U.S., is focusing to optimize its last mile network and in turn cut costs. Speaking at Goldman Sach's 24th Annual Communicopia conference, Tony Thomas, CEO of Windstream, said that the company is focusing to increase its on-net fiber buildings (buildings supported by the company’s own fiber-based network) footprint.

For 2015, Windstream has selected five markets where the company will create a meshed network around its existing network rings to provide last mile access. Management has decided to spend $25 million initially to broaden its footprint of on-net fiber buildings in five select markets.

At present, Windstream pays as much as $1 billion per year to incumbent local exchange carriers (ILEC) like AT&T Inc. T and Verizon Communications Inc. VZ as special access fees in order to access the ILEC’s wholesale network to deliver services to its multisite enterprise customers where the company does not have a last mile network facility.

Windstream offers broadband, telephony and digital TV services to consumers primarily in rural areas. It also provides advanced network communications such as cloud computing and managed services to business enterprises.

Windstream is gradually expanding its wave transport services with 100 Gbps data transmission speeds. The company aims to provide this service in 44 U.S. markets by the end of this year. The 100 Gbps network will also act as a long-haul backbone for last mile connection for both enterprise and carrier customers.

In Apr 2015, Windstream completed the tax-free spin-off of select telecommunications network assets to form an independent publicly traded real estate investment trust. The new company is known as Communications Sales & Leasing Inc. CSAL. In terms of infrastructural development, Windstream aims to offer faster broadband speeds to its customers, following the spin-off.