Middleton-House & Company

In the Midst of Telecom Turmoil….  April 23rd, 2007

Tele-
phony

In the Midst of Telecom Turmoil, Two Indepen-
dents Stand Tall

Doug Springfield, January 22, 2003. When businesses align well with their customer markets, they are more likely to grow and retain market share. But staying aligned with the customer isn’t easy when both the regulatory environment and the competitive market are turbulent. The telephone industry is a perfect example. It is difficult under these circumstances to stay focused on company business goals consistent with core values. And it requires a special discipline to integrate strategies, programs, and projects across departments into a unified, company-wide approach.

But in the chaotic telecom environment, two companies have done just that. CenturyTel and Cincinnati Bell stories are encouraging. They’ve stayed with their core lines of business, excelled at them and prospered.

Consider this stark contrast.

On one hand, the market valuations of the major long-distance carriers are off anywhere from 70% to 100%, and the stock prices of the Bell companies have fallen 30% on average. On the other hand, CenturyTel and Cincinnati Bell have both demonstrated healthy growth in the same time period.

What’s going right?

In the Midst of Telecom Turmoil, Two Independents Stand Tall