Transcript CenturyLink is an Experienced 911 Provider - Colorado 9-1

CenturyLink and Qwest Merger
Update
Presented to:
Colorado 911 Summit
Jeremy Ferkin
CenturyLink General Manager
November 19, 2010
Key Transaction Attributes
Transformational transaction announced April 22nd will
create a nationwide, industry-leading communications
company
• Extensive broadband footprint and capabilities
• 180,000-mile fiber network
• Enhanced ability to competitively roll out strategic
products such as IPTV and other high-bandwidth
services
• Strong financially sound company
• Strong competitor in enterprise markets
• Strong local and national operator serving 5 million
broadband customers and 17 million access lines
across 37 states
2
Transaction Summary
Transaction Structure: All stock combination
Fixed Exchange Ratio: 0.1664 shares of CenturyLink stock per share of
Qwest stock
Pro Forma Ownership: 50.5% CenturyLink shareholders / 49.5% Qwest
shareholders
Enterprise Value:
$22.4 billion
Pro Forma 2009
Net Leverage:
2.4x (before synergies) / 2.2x (after run-rate
synergies)
Financing:
No new financing or refinancing required
Closing Conditions:
HSR, FCC, certain state regulatory approvals;
CenturyLink and Qwest shareholder approvals; and
other customary closing conditions
3
Management Team
Experienced management team with strong integration
track record:
• Chairman of the Board: William A. Owens
• Chief Executive Officer & President: Glen F. Post III
• Chief Financial Officer: R. Stewart Ewing Jr.
• Chief Operating Officer: Karen A. Puckett
• President of Business Markets Group: Christopher K. Ancell
• Board Members: 4 members from the current Qwest Board,
including Edward A. Mueller, Qwest’s Chairman and Chief
Executive Officer to be added to CenturyLink Board
4
Local Operating Model / Premier Nationwide Network
CenturyLink
Qwest
CenturyLink CLEC Service Area
CenturyLink IP / MPLS Core
Qwest Points of Presence
CenturyLink Fiber Network
Qwest Fiber Network
COLORADO CenturyLink and Qwest Operations
Qwest Wireline Exchanges
CenturyLInk Core Fiber
Qwest IXC Route
CTL
Q
Employees
130
7,900
2009 Annual Payroll
$10.7m
$736m
Total Investment
$476m $8,581m
Access Lines
76,900 1,650,000
Access Lines, DSL-Enabled
80%
90%
All Statistics as of 12/31/2009
6
Total
8,030
$747m
$9,057m
1,726,900
Status of Merger Activity
•
•
•
•
Shareholders of both companies approved transaction August 24, 2010
On July 15, 2010, Dept of Justice terminated early the applicable
waiting period under the Hart-Scott-Rodino act.
FCC proceedings underway
13 jurisdictions have approved
-
•
Other states with proceedings underway:
-
•
12 states and District of Columbia
Iowa first Qwest ILEC state to approve
Hearings held in MN, NE, UT, CO
Scheduled/in process in AZ, OR, WA, MT,
Several Q ILEC states where no state regulatory proceeding required:
– ID, NM, WY, ND, SD
Colorado hearings held last week
-
Settlements with Staff, Integra, 360, CWA and DOD
Staff settlement included 911 provisions regarding Next Gen planning, a commitment to stay
involved with the 911 Task Force, strengthening contingency plans and evaluating
redundancy issues statewide.
CenturyLink and 911
CenturyLink is a full service 911 Service Provider, with over 20 years of experience in the
industry
CenturyLInk is an integrator of public safety solutions using a variety of best of breed
vendors serving the Public Safety industry
• Network
• Equipment
• Maintenance
CenturyLink representatives serve on:
• 911 Wireless Boards
• NENA Boards/Committees
• Governor’s 911 Boards
CenturyLink has Public Safety Experts in:
• Technical engineering design and pricing quotes
• Development of Technical Scopes Of Work
• Network, Database, and Project Management
CenturyLink is an Experienced 911 Provider
CenturyLink provides best-in-class Public Safety Data and Voice
communication solutions.
• Currently offers a single provider,
integrated solution of Network, CPE,
Professional Services and Data Base
services
• Currently maintains 40-45 TDM based
Selective Routers deployed in 33 markets
in a regional topology
• Currently deploying our IP-Capable
Routers in Florida
• Currently a 911 ALI Database provider in
a many of our local service territories,
managing over 7 million records on a daily
basis. CenturyLink maintains two
geographically diverse and redundant ALI
databases.
• Currently serving over 700 PSAPs
across its 33 states.
911 Focus of CenturyLink
Continue Implementation of an NG911 IP-Routing Topology
•
•
Continue the build-out of our own IP-Routing network
Continue to partner with a third-party IP-Routing provider when applicable
Evolution of CenturyLink’s 911 Database
•
Continue to evolve our own National ALI Database to fit into a NG911 environment
Turn-Key 911 Equipment Provider
•
Continue to maintain a robust list of Equipment providers for ANI/ALI Controllers,
Controllers, Consoles, Mapping Software, Record Management Systems,
NetClocks, Recorders, Mobility, & Surveillance
Network Provider
•
•
Continue to expand MPLS transport solutions for IP network connectivity
Continue to provide TDM transport solutions during the evolution to a NG911
network
IP Based Network Topology
Gateway to
Another Network or
another PSAP
Gateway only used
If PSAP needs
conversion from SIP
to CAMA
CTL MPLS Network
Central Office Switch
Customer Router
PSAP “A”
IP Enabled
MPLS Transport
CTL NG911 Router
CAMA, SS7 & IP
CSU/DSU
Central Office Switch
Firewall
CTL 911 Location DB
Johnson City
VoIP Switch
VPC
Mobile Switch MSC
CTL 911 Location DB
Bristol
PSAP “B”
NON IP Enabled
CAMA Trunking
Customer Benefits of Merger
1. Customer Focus: Creates a local go-to-market focus bringing
decisions closer to the needs of local customers and communities
with the experience and resources of a national company
2. Expanded and Enhanced Consumer Offerings: Increases the
likelihood of faster, broader broadband service deployment enabling
terrestrial based video competition via IPTV
3. Increased Capabilities: Creates a stronger data/voice and longhaul competitor to the long haul efforts of the two largest integrated
communications companies
4. Financial Strength and Flexibility: The combined company’s
sound capital structure will support its ability to take advantage of
opportunities that may arise, while continuing to invest in its
businessl
5. Experienced leadership team with strong integration track
record.
12
In Summary
This transaction is a win for customers, communities, and government:
• The merged company is better positioned to make investments that
benefit customers in the form of broadband expansion and services, IPTV,
Next Gen 911 and other innovative products.
• The communities we serve will benefit as our innovative services spur
economic development and increased the successful use of technology.
• Businesses, government, healthcare and educational institutions will
greatly benefit from the coast-to-coast reach of the new company’s
telecom infrastructure
• 911 providers will see a company committed to providing quality service
and competitive prices. CenturyLink’s commitment to the 911 community
is that we will be partners as we integrate the two companies and we
stand ready to be a quality service provider as we move into the Next Gen
arena.
13
CenturyLink team members here with me today:
Scott McKenzie
Kevin Eckhoff
Edie Ortega
QUESTIONS?