Friday, April 16, 2021

Lumen Outlines Where it Will Invest, Where it Will Harvest

Lumen Technologies has a clear understanding of where its revenue growth is to be found. Lumen earns most of its revenue--up to 75 percent or so--from business customers, so it makes sense to look for revenue growth in international enterprise operations, IP data services including edge computing, transport and apps supporting transport. 


source: Lumen Technologies 


Consumer and small business revenue growth (mass markets) will come almost exclusively from broadband access services. 


The wholesale, voice and rural operations are not seen as growth vehicles and essentially will be harvested. Note that Lumen is not a supplier of mobility services, so that is not a growth option. 


Every connectivity provider with multiple customer segments and products has to make similar decisions about where growth is to be found and where investments are to be made. 


Conversely, every business has to know which lines of business are declining and have to be managed for decline.


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