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Windstream’s Improved XCaaS to Boost Customer Experience


Windstream Holdings, Inc.’s WIN business segment, Windstream Enterprise, recently enhanced its XCaaS service. This will enable the enterprise and mid-market companies to link contacts of customer across voice, digital, as well as open-media channels.

Delivering superior customer experience has become fundamental for almost every business as this enables them to increase operational efficiency and reputation. Leveraging Mitel’s 4.1 version of its leading UCaaS and CCaaS solutions, the enhancement will facilitate delivery of complete suite of omni-channel customer service tools.

Windstream Enterprise provides advanced network communications and technology solutions to Enterprise and Wholesale business units in the United States. For instance, it is engaged in offering SD-WAN Concierge, Cloud Connect and Wi-Fi solutions apart from OfficeSuite UC as well as UCaaS/CCaaS Mitel solutions.

Existing Business Scenario

Windstream is realigning its wireless network toward a software-centric model to meet increasing business demands and customer needs. The company is transforming its product portfolio and network in an attempt to enhance customer experience. Notably, the service provider claimed that customers from different sectors like regional banking, healthcare, retail and manufacturing purchased its SD-WAN service. Also, the launch of a multi-featured SD-WAN solution and its cloud-to-cloud disaster recovery management solutions should rake in considerable profits.

Moreover, the company is focused on improving sales, cutting costs and pricing initiatives, which are expected to boost profitability and check churn. Investments made in data center and fiber expansion are likely to create further impetus for revenue growth going forward. Further, expansion of its metro fiber network business in newer areas and its aim to extend the deployment of G.fast technologies over traditional copper telephone wires bode well.

The Zacks Rank #3 (Hold) stock has yielded a return of 10.4% compared with the industry’s growth of 1.6% in the past month.

However, Windstream’s carrier transport business continues to remain under pressure as the telecom operators demand smaller amounts of copper-based dedicated circuits to transfer data traffic between different points within their network. This apart, wireless competition has resulted in a reduction in the company’s access lines, and has led to pricing pressure in the industry.

Stocks to Consider

Some better-ranked stocks in the same space are United States Cellular Corporation USM, ATN International, Inc. ATNI and VeriSign, Inc. VRSN. While United States Cellular sports a Zacks Rank #1 (Strong Buy), ATN International and VeriSign carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United States Cellular surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 340.40%.

ATN International outpaced estimates thrice in the preceding four quarters with an average earnings surprise of 146.08%.

VeriSign exceeded estimates thrice in the trailing four quarters with an average earnings surprise of 1.37%.

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