Windstream Wins Service Deal

Zacks

Windstream Corporation (WIN) secured a service-render contract from the General Services Administration (:GSA) of the U.S. Federal Government. The GSA is involved with operational efficiency and enhancement of federal and government services toward the public.

Spanning over 10 years, this multi-million dollar contract permits Windstream to provide voice, Internet, data, and converged services to GSA’s Region 4, commonly called the Sunbelt Region. Territories that fall within this belt are southeastern states of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee.

Through this agreement, over 60,000 federal employees working under more than 400 GSA-owned buildings, properties and agencies will access Windstream’s advanced telecommunications and technology solutions. These offices include the Department of Justice/U.S. Attorneys, Department of Labor, Internal Revenue Service and Social Security offices.

Additionally, Windstream will also offer its award winning Voice over Internet Protocol (VoIP) solution, expansive fiber optic network, and data center services to all the federal-regulated agencies that have local branches in the eight Sunbelt states. These bureaus are already served by Windstream under a separate agreement, since 2006.

The business tie-up between Windstream and GSA goes back a long way, with the latter being impressed by the level of quality services the former is extending to the federal staff base. Wndstream management also remains committed to continuously provide reliable, customized and most updated solutions to the workers, making their jobs less time consuming and easier.

Windstream – which teamed up with LifeSize Communications, a division of Logitech International SA (LOGI) – holds a Zacks Rank #3 (Hold).

We remain optimistic on the company’s performance based on a lucrative bundle of service offerings, an expanding customer base and various strategic measures. The company’s strong operational base is expected to drive growth in business and consumer channels with synergies from the acquisitions.

However, we remain concerned about competitive pressure from other industry players such as Frontier Communications (FTR) and Consolidated Communications Holdings Inc. (CNSL), constant upgrades in the technological scenario as well as the continued access-line erosion.

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