CenturyLink SWOT and PESTLE Analysis

Strength

1. Reputed telecom in North America with more than 55 data centres across North America, Europe and Asia Pacific region: CenturyLink is almost 85 years old brand with its offerings in Communications, Network and Data systems management, Big Data analytics and IT consulting. With more than approximately 11.1 million total access line, it is the third largest wire-line telecommunications company in USA. CenturyLink does not own all of its data centres but has gradually gained by strategically acquiring various companies.

2. Large spread of high speed fiber optic cables: CenturyLink has close to 265000 miles of domestic fiber-optic plant which has a high life up to 45 years. Fiber plays a huge role in some of the strategic services of CenturyLink such as broadband and Ethernet services.

3. Flexible bundling options: CenturyLink provides bundling options, by which customers can purchase high speed internet, TV and phone, backed by high speed fiber, DSL and other international transport network. If a customer is planning to shift to a new location, CenturyLink transfers all the services online subject to the availability of the services in the new area.

4. One stop solution for its customers: CenturyLink has approximately 1 Million miles of copper plant and close to 265000 miles of domestic fiber-optic plant. Along with bundling options, its premium product, Prism TV, has attracted a lot of customers with over a 300% growth (2012-2016) thus making it a one stop solution.

5. Inorganic growth through strategic acquisitions: On November 3, 2016, CenturyLink Inc decided to sell their data centers (57) and colocation business to a consortium led by BC Partners and Medina Capital in exchange for cash and a minority stake in the consortium's newly-formed global secure infrastructure company, Cyxtera Technologies, to complete its acquisition of Level 3 Communications. It has done similar acquisitions in the past for acquiring Qwest, Savvis, AppFog, Data Garden and netAura LLC for expanding business.

Weakness

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Opportunity

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Threat

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Political

1. CenturyLink makes direct contributions to political connections: CenturyLink plays a vital role in supporting candidates, political parties, political action committees. Between Jan – June it spent $293,400 for corporate contributions and $101,731 was obtained through the company’s employees. CenturyLink also engages in lobbying activities to promote its position on public policy issues with various officials in the government. These public policy issues could be affecting the company, employees or customers.

2. CenturyLink participates in trade association memberships and related engagements: CenturyLink believes that to make the industry reach a consensus on various policy issues, it is important to maintain associations and negotiations. It spent $170,550 in trade associations and memberships. CenturyLink is member of several Business Trade Associations.

3. Changes in rules and regulations affecting public companies in USA: Changing rules and regulations regarding corporate governance and public disclosure, including the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, have increased CenturyLink’s legal and financial compliance costs. Any failure to successfully or timely complete annual assessments of the company’s internal controls required by Section 404 of the Sarbanes-Oxley Act could lead to sanctions or investigation by regulatory authorities which might have a huge impact on its reputation and financial results.

Economic

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Social

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Technological

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Legal

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Environmental

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