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Centurylink Product

To connect people, data, and applications by delivering the fastest, most secure platform for next-generation experiences

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To connect people, data, and applications by delivering the fastest, most secure platform for next-generation experiences

Strengths

  • NETWORK: Extensive fiber network infrastructure spanning 190,000+ miles
  • ENTERPRISE: Strong position in enterprise market with 30,000 buildings
  • SECURITY: Advanced security capabilities embedded in network platform
  • CLOUD: Direct connectivity to major cloud providers across regions
  • EXPERIENCE: Decades of expertise in telecom services and operations

Weaknesses

  • LEGACY: Declining legacy business revenue still 35% of total revenue
  • INNOVATION: Slow pace of new product development versus competitors
  • PLATFORM: Fragmented product offerings lacking cohesive platform
  • TALENT: Challenges attracting top digital/cloud product talent
  • AGILITY: Bureaucratic processes slowing time-to-market by 30%+

Opportunities

  • CLOUD: Growing enterprise demand for secure edge computing solutions
  • AI: Rising need for high-bandwidth, low-latency network for AI workloads
  • SECURITY: Increasing cybersecurity concerns driving security services
  • EDGE: Anticipated 75% of enterprise data processed at edge by 2025
  • AUTOMATION: Network automation delivering 40%+ operational savings

Threats

  • COMPETITION: Hyperscalers expanding into networking services
  • PRICING: Price compression in core connectivity services (5-8% annual)
  • ALTERNATIVES: Emergence of satellite and wireless as fiber alternatives
  • REGULATION: Uncertain regulatory landscape for network providers
  • TALENT: Tech giants competing for limited specialized technical talent

Key Priorities

  • PLATFORM: Develop integrated platform for enterprise edge computing
  • MODERNIZE: Accelerate legacy to next-gen services transition
  • AI-READY: Build optimized network infrastructure for AI applications
  • SECURITY: Expand network security services across product portfolio

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To connect people, data, and applications by delivering the fastest, most secure platform for next-generation experiences

PLATFORM POWER

Create the industry-leading enterprise edge platform

  • INTEGRATION: Launch unified platform connecting network, security and edge computing for 500 enterprise clients
  • ARCHITECTURE: Complete microservices-based product architecture transformation with 85% API coverage
  • EXPERIENCE: Achieve platform customer satisfaction score of 85+ through simplified user interface
  • MIGRATION: Convert 250 legacy enterprise customers to new platform services with 40% ARPU increase
MODERNIZE

Accelerate transition to next-generation services

  • QUANTUM: Expand Quantum Fiber footprint to reach 3.5M additional locations with 75% take rate in new markets
  • CONVERSION: Migrate 40% of legacy enterprise customers to platform services by Q4 with 15% revenue growth
  • SUNSETS: Decommission 35% of legacy infrastructure platforms generating $120M in annual cost savings
  • AUTOMATION: Implement digital-first operations reducing service delivery time by 60% for enterprise clients
AI-READY NETWORK

Build optimized infrastructure for AI applications

  • FABRIC: Deploy AI-optimized network fabric in 12 major markets with 40ms or less latency to cloud regions
  • PARTNERSHIPS: Establish 5 strategic alliances with AI technology leaders for joint solution development
  • OPTIMIZATION: Implement AI-driven network optimization reducing operational costs by 25% across core network
  • WORKLOADS: Enable 100 enterprise customers to run AI/ML workloads on Lumen edge computing platform
SECURE EVERYTHING

Embed security across entire product portfolio

  • INTEGRATION: Implement security-by-design in 100% of new product offerings with automated compliance checks
  • SERVICES: Launch 3 new AI-powered security services generating $45M in incremental annual revenue
  • PROTECTION: Achieve 99.99% threat detection rate through implementation of advanced ML detection systems
  • ADOPTION: Increase attachment rate of security services to 65% across enterprise connectivity solutions
METRICS
  • Platform services revenue growth: +5% YoY by Q4 2025
  • Enterprise customer retention rate: 110%
  • Next-gen services as % of total revenue: 65%
VALUES
  • Fairness
  • Integrity
  • Honesty
  • Perseverance
  • Commitment to Excellence

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Align the learnings

Centurylink Product Retrospective

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To connect people, data, and applications by delivering the fastest, most secure platform for next-generation experiences

What Went Well

  • GROWTH: Enterprise Quantum Fiber revenue increased by 14% year-over-year
  • EFFICIENCY: Achieved $800M in cost transformation savings ahead of schedule
  • RETENTION: Enterprise customer retention improved to 105% from 102% YoY
  • PLATFORM: Platform-based services revenue grew to 47% of total portfolio

Not So Well

  • LEGACY: Mass Markets legacy business revenue declined 22% year-over-year
  • MARGINS: Gross margin pressure from inflationary impacts on labor costs
  • EXPANSION: Fiber network expansion build pace below quarterly targets
  • ADOPTION: Enterprise customer migration to platform services behind plan

Learnings

  • FOCUS: Concentrated investments in growth areas yield better returns
  • SIMPLICITY: Simplified product portfolio drives higher customer adoption
  • BUNDLING: Integrated solutions outperform individual product offerings
  • DIGITAL: Digital-first customer experiences reduce churn significantly

Action Items

  • ACCELERATE: Expedite Quantum Fiber deployment to reach 12M locations
  • TRANSFORM: Increase automation of service delivery to reduce costs by 25%
  • PLATFORM: Unify product offerings into cohesive enterprise platform
  • MODERNIZE: Migrate 40% of legacy customers to next-gen services in 2025

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To connect people, data, and applications by delivering the fastest, most secure platform for next-generation experiences

Strengths

  • INFRASTRUCTURE: Network designed for high-performance AI workloads
  • PARTNERSHIPS: Strategic alliances with leading AI technology providers
  • DATA: Access to vast network telemetry data for AI/ML applications
  • POSITION: Unique position to deliver secure AI-optimized connectivity
  • EXPERIENCE: Track record of AI for network management operations

Weaknesses

  • TALENT: Limited AI/ML specialized personnel compared to tech giants
  • ADOPTION: Slow internal adoption of AI across product development
  • INVESTMENT: Lower R&D budget allocation to AI initiatives (2% vs 10%)
  • STRATEGY: Fragmented approach to AI across business units
  • LEGACY: Technical debt constraining AI integration possibilities

Opportunities

  • EDGE-AI: Growing demand for edge AI processing with low latency
  • AUTOMATION: AI-driven network operations reducing costs by 35%+
  • SECURITY: AI-powered threat detection market growing at 24% CAGR
  • EXPERIENCE: Customer experience enhancement via AI personalization
  • OPTIMIZATION: AI-based network optimization reducing costs by 25%

Threats

  • COMPETITION: Cloud providers offering competing AI-network services
  • CAPABILITY: Rapid AI innovation pace exceeding internal capabilities
  • COMMODITIZATION: Basic AI becoming commoditized in network space
  • TALENT: Aggressive recruiting of AI specialists by competitors
  • DOMINANCE: Market concentration around few leading AI platforms

Key Priorities

  • PLATFORM: Build AI-optimized connectivity platform for enterprises
  • OPERATIONS: Deploy AI for predictive network management at scale
  • PARTNERSHIPS: Expand strategic AI alliances with technology leaders
  • TALENT: Establish AI Center of Excellence to attract specialized talent

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AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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