Too Little Too Late For Windstream?

To remain competitive and relevant, telecom companies must continually grow and expand to provide the latest goods and services requested by consumers. Should the contingency arise to that, these companies must as well anticipate future consumer needs and trends. Few telecom companies actually understand these concepts more than Windstream. Since 2006, the company has expanded its Internet, phone, and other telecom services in both rural and urban territories. Recently, the company launched IP Simple Solutions, an all-in-one IT package for small and medium-sized businesses.

IP Simple Solutions is available nationwide. The bundle includes phone system equipment, VoIP (Voice over Internet Protocol), and data services, making it easier for businesses to operate. Instead of purchasing goods and services from multiple providers, businesses within Windstream territory can now turn to the company for all of their IT needs.

The small business arena has become a hot market over the past three years, with various telecom companies all trying to conquer and dominate. Small businesses are in the in a class by itself position of needing the latest products and services, nevertheless typically don't have large operating budgets. By offering packages instead of selling only single services, telecom companies help bring down these costs while for all that providing quality service.

For example, AT&T offers a variety of products and services, including its Mobile Enterprise Applications Platform, which helps businesses create and manage apps. At&T as well offers small business advice and assistance through written content and webinars. Verizon has as well stepped up to help small businesses by providing a host of products and services, including Internet, cell phone, and in-office phone systems.

With heavy hitters like these in the market, lesser known companies like Windstream have to work twice as hard to make an impact. AT&T has done a stellar job by positioning itself not only as a provider of reliable goods and services, nevertheless also as a "go-to" database for information, advice and other types of help for those just starting a business. This is an invaluable service that many novice business owners not only need, yet are more likely to actively seek out. To boot, this service as well helps increase revenue by building a brand that clients can return to time and again when in need of advice or products.

And at that time there are lesser known telecom companies, like CenturyLink and Frontier, who as well offer business solutions products and services to small businesses. Their presence only furthermore crowds the competitive arena.

The other hand

On the other hand, in areas with fewer telecom options, just as rural territories, Windstream has made its mark by providing quality goods and services in residential areas. And as more and more small businesses begin to pop up in these areas, Windstream may come out ahead, as it already has a local advantage over the competition. Nevertheless in more populated areas, the competition may be too much.

Depending on how the company plans to market its new small business line of products and services to clients, IP Simple Solutions could take off without warning, or it could take awhile to build momentum.

Income statements for 2010 and 2011 show Windstream earned $3.71 billion and $4.29 billion in sales and revenue, respectively. Gross income for 2010 and 2011 was $1.61 billion and $1.65 billion, respectively. Though both years appear similar, the net income numbers are different. In 2010, the company's net income was $310.7 million; and in 2011, $169 million -- a difference of $141.7 million.