Windstream’s stock has been under $2 for a month now. It may go as low as $1 according to a few speculators. On top of that, they are sitting on $6 Billion in debt with less than $6 Billion in revenue.
They have to spend some CAPEX to upgrade broadband in RLEC region. They lost money on data centers when they sold it off to Tierpoint. They wasted dollars on IPTV; and are now re-selling AT&T DirecTV. Dividends require free cash flow.
What move does the C-Suite make? A re-brand.
The Cloud & Connectivity Unit becomes Windstream Enterprise & Wholesale, combining all Enterprise, Wholesale and CLEC/SMB business units. The C-Suite is going all in on SD-WAN, fiber and UCaaS. The hope is that the old CLEC operations will win the day. The RLEC is basically a drain. They don’t think they can move the needle against cable and 5G.
None of the factors externally changed. They still have to win business against their rivals: Comcast, Spectrum, AT&T and Verizon.
In the UCaaS space, there are at least 9 companies performing better — and most of them lose money! How does WIND outperform in UC against companies willing to lose money in the near term?
In the SD-WAN race, they are now the early bird in a sea of providers. That will hurt their margins.
For them to win business, what is the new story now?
All this is lipstick. It is a new logo. Big deal. Brand without Culture is a failure. Re-naming the division you are betting your business on without a culture change won’t work. Your Culture is Your Brand.
There were problems with service delivery; and profit on services sold. The mentality of any revenue is good revenue is a telecom fable. I just don’t think anything internally changed at WIND except the logo (shirts).
Tom Peters writes, “Logically, we think that strategy should drive behavior, but, in reality, it’s the culture—underlying norms, values, belief systems—that dictates how effectively people work together. Employees’ behavior has direct impact on the bottom line, costs, revenue streams, level of productivity, customer satisfaction, even the brand—every aspect of the business is affected. If strategy and culture are not aligned, the culture may support behaviors that conflict with what has to get done—and actually block execution of the strategy.”