Windstream 2015 Annual Report Download - page 89

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Sales and marketing
Our sales and marketing efforts are designed to differentiate us from our competitors by providing a superior customer experience.
Our sales and customer support staff are aligned to work closely with each customer to ensure that the customer’s specific business
needs are met. Whether servicing content providers, cable operators, data centers or other communication services providers who
may not have sufficient transport network to support their immediate needs, our goal is to exceed customer expectations by providing
personalized service and solutions.
Competition
The market for carrier services is highly competitive as continued merger and acquisition activity has resulted in fewer customers
and intensified pricing pressure. To improve competitiveness and expand new sales opportunities, we have invested in our network
to meet the growing demand for 10Gbps and 100Gbps bandwidth. Through network expansion and Ethernet upgrades, we are
capable of providing access and transport services to major interconnection points with other networks and to rural markets, often
providing unique and diverse routes. By providing a superior customer experience and advanced network technology, we believe
we are well positioned to attract new business and increase market share.
ENTERPRISE SEGMENT
Our Enterprise segment provides advanced communications services to enterprise customers. During 2015, the Enterprise segment
generated $2.1 billion in revenue and $241 million in contribution margin.
Strategy
The strategy for our Enterprise business is centered on growing
revenue and increasing profitability. As one of the Country’s
largest network providers, our nationwide presence and broad
portfolio of customized solutions provide enterprise customers
with a unique service model. We target enterprise customers
generating between $5,000 to $100,000 in monthly revenue.
This competitive differentiation combined with an agile sales
and service model has enabled us to increase market share and
grow revenue in the 3-5% range.
We believe we can drive meaningful improvements in our
Enterprise margins by focusing on profitable growth, increasing
sales on our own network facilities to reduce third party network
access costs and improving of efficiency with system and
process enhancements. We made progress on this goal in 2015
by increasing margins from 10% in the first quarter to 15% in
the fourth quarter and will make further improvements over the
next 3 years.
Services and Products
Our Enterprise customers typically have more complex communications requirements and value our customized solution design
process, personalized customer service and proactive managed service support. They subscribe to services such as multi-site
networking, integrated VoIP and data services, Unified Communications as a Service (“UCaaS”), data center (cloud) connectivity,
network security, managed network services, and other cloud services.
• Integrated voice and data services: Our integrated services deliver voice and data over a single connection, which helps
our customers manage voice and data usage and related costs. These services are delivered over an Internet connection,
as opposed to a traditional voice line, and can be managed through equipment at the customer premise or through hosted
equipment options, both of which we are able to provide.
Enterprise
Competitive Advantages:
• Nationwide presence
• Broad portfolio of advanced,
customized solutions
• Focused on mid-size enterprise
customers
• Agile sales and service model
Key Business Drivers:
• Continued revenue growth
• Margin expansion
• Expanded data center footprint
through TierPoint partnership