CT COMMUNICATIONS INC

CT COMMUNICATIONS INC

Previous company name
CONCORD TELEPHONE CO
Name change date
7/3/1992
Company Overview
CT Communications Inc, with registered office address in Concord, is a US-based private company active in the telecommunication industry. The company is specialized in the provision of telecommunications and related services such as local and long distance telephone, Internet broadband and wireless services with approximately 100,000 access lines in three North Carolina counties (Cabarrus, Stanly, and Rowan). It also has operations in the Charlotte, Greensboro, and Raleigh counties providing small and mid-sized businesses a competitive local carrier services.
CT Communications operates in five business division: incumbent local exchange carrier (ILEC), competitive local exchange carrier (CLEC), Greenfield services, Digital wireless, and Internet and data services. In the incumbent local exchange carrier (ILEC), the company delivers local telephone services to wide variety of business customers. The competitive local exchange carrier (CLEC) offers competitive local telephone services to residential and industrial customers. In the the Greenfield services unit, it offers full telecommunications services to new-mixed-use developments. Its Digital wireless caters Wireless phone services with Palmetto MobileNet LP. The Internet and data services company (IDS) is involved in the provision of dial-up and high-speed internet access, hosting, web design,and other data related services.
In the fiscal year 2006, CT Communications provided services to more than 50,000 wireless customers and 30,000 Internet customers (DSL) and operated more than 94 cell sites in service. In 2007, the Windstream agreed to company the firm in 2007 for approximately $585 million.
Business Summary
CT Communications, Inc. (CTC) provides integrated telecommunications and related services, including local and long distance telephone, Internet broadband and wireless services, to residential and business customers located primarily in North Carolina. The Company offers Internet and data services to incumbent local exchange carrier (ILEC), competitive local exchange carrier (CLEC), and Greenfield business and residential customers. These services include dial-up and high-speed dedicated Internet access and broadband services with download speeds up to 15 megabits per second. The CLEC business focuses on small to medium-size companies along the I-85 corridor, between Charlotte and Greensboro, North Carolina. The CLEC offers services substantially similar to those offered by the ILEC to its business customers. In August 2007, Windstream Corp. completed the acquisition of CT Communications, Inc.
Description and history
CT Communications, Inc. (CTC) provides integrated telecommunications and related services, including local and long distance telephone, Internet broadband and wireless services, to residential and business customers located primarily in North Carolina. The Company offers Internet and data services to incumbent local exchange carrier (ILEC), competitive local exchange carrier (CLEC), and Greenfield business and residential customers. These services include dial-up and high-speed dedicated Internet access and broadband services with download speeds up to 15 megabits per second. The CLEC business focuses on small to medium-size companies along the I-85 corridor, between Charlotte and Greensboro, North Carolina. The CLEC offers services substantially similar to those offered by the ILEC to its business customers. In August 2007, Windstream Corp. completed the acquisition of the Company.

CTC and its subsidiaries operate entirely in the communications industry. The Company’s wholly owned subsidiaries include The Concord Telephone Company (Concord Telephone), CT Wireless Cable, Inc. (CT Wireless Cable), Wavetel, L.L.C. (Wavetel), WebServe, Inc. (WebServe), Wireless One of North Carolina, L.L.C. (WONC), CTC Long Distance Services, LLC (CTLD), CT Cellular, Inc. (CT Cellular), CTC Exchange Services, Inc. (Exchange Services), CT Internet Services, Inc. (Internet Services), Wavetel NC License Corporation, Progress Place Realty Holding Company, LLC, WaveTel TN, L.L.C. and Carolina Personal Communications, Inc. (CTC Wireless).

ILEC Services

Concord Telephone offers integrated telecommunications services as an ILEC to customers served by approximately 106,000 access lines in Cabarrus, Stanly and Rowan counties in North Carolina. The operations of Concord Telephone are the Company’s primary business segment. During the year ended December 31, 2006, Concord Telephone accounted for approximately 54% of the Company’s operating revenue. The Company’s ILEC derives revenue from providing local telephone services, network access services and other related services. Local service revenue is derived from the provision of local exchange telephone services in CTC’s service areas and includes primarily revenue from local service charges and calling features. Network access revenue is primarily derived from services provided by the Company to long distance carriers, wireless carriers and other customers in connection with the use of the Company’s facilities to originate and terminate interstate, intrastate and local telephone calls. Other revenue primarily includes revenue related to leasing, selling, installing and maintaining customer premises telecommunications equipment and wiring, and the publication of local directories.

CLEC Services

The CLEC offers an integrated combination of communications services, including local service, long distance service and enhanced voice services, and Internet and data services. The CLEC uses the same billing platform as the ILEC. The Company’s CLEC business entered an interconnection agreement with BellSouth in 1997, and initiated operations northeast of Charlotte, North Carolina along the Interstate 85 corridor, a north/south connector between Atlanta, Georgia and Washington, D.C. In addition, the CLEC has interconnection agreements with several other incumbent telephone companies, including Verizon Communications, Inc. (Verizon), Embarq Corporation (Embarq), Windstream Communications (Windstream) and Concord Telephone. At December 31, 2006, the CLEC business unit was providing local access to customers served by more than 35,000 access lines in select markets in North Carolina. The CLEC accounted for 11% of the Company’s operating revenue in 2006.

Greenfield Services

The Company’s Greenfield business provides wireline telecommunications services to commercial and residential developments outside of the ILEC serving area. While most of these developments are located in North Carolina, the Company also provides local access in Georgia. At December 31, 2006, CTC had more than 16,000 access lines in select markets in North Carolina and Georgia. Greenfield accounted for 6% of the Company’s operating revenue in 2006.

The Greenfield business develops relationships with builders and developers to provide integrated telecommunications service in their new developments. CTC enters into telecommunications provider agreements with those developers and builders prior to construction to offer local service, long distance, enhanced voice services, and Internet and data services to businesses and residents in each development. As of December 31, 2006, the Company had 126 projects. During the year ended December 31, 2005, CTC began installation of a softswitch that can support data products and features, such as integrated messaging. During 2006, the Company transitioned customers in certain Raleigh Greenfield projects onto the softswitch.

Wireless Services

The Company offers wireless services in Cabarrus, Stanly, Rowan and Iredell counties in North Carolina. The Company sells wireless services and products, including service packages, long distance, features, handsets and accessories through six Company-owned retail outlets and 10 indirect retail outlets in North Carolina. CTC has Company-owned retail stores in Concord, Kannapolis, Statesville, Mooresville, Salisbury and Albemarle. Wireless products and services are also sold through the Company’s ILEC business offices and a direct sales force. At December 31, 2006, the Company served over 49,000 wireless customers. The wireless business accounted for 22% of the Company’s operating revenue in 2006.

Internet and Data Services

CTC provides dial-up Internet access to residential and business customers. At December 31, 2006, the Company had over 31,000 Internet customers. The Company offers broadband speeds of up to 10 megabits per second throughout much of its ILEC service area. It offers a variety of dial-up and dedicated solutions that provide access to the Internet. CTC also offers a range of customer premise equipment required to connect to the Internet. The Company’s access services include dedicated access, fiber access, digital subscriber line (DSL) access and dial-up access.

The Company offers a line of high-speed dedicated access utilizing frame relay and dedicated circuits, which provide business customers with direct access to a range of Internet applications. In 2006, CTC began deploying aerial fiber in select ILEC locations. The fiber facilities allow the ILEC to deliver bandwidth services, including voice, video and high-speed data service. As of March 7, 2007, the ILEC offered data speeds of up to 15 megabits per second to customers served off these fiber facilities. The Company’s DSL technology permits high-speed digital transmission over the existing copper wiring of regular telephone lines. Broadband services utilizing DSL are available at download speeds from 256 kilobits per second up to 10 megabits per second. DSL services are designed for residential users and small to medium-sized businesses to provide Internet access. At December 31, 2006, the Company had 25,704 DSL lines. The Company’s dial-up services provide access to the Internet through ordinary telephone lines at speeds up to 56 kilobits per second. At December 31, 2006, CTC had 4,717 dial-up customers.

CTC competes with AOL, Microsoft, EarthLink, AT&T, Verizon Communications, Inc. and Time Warner.

Business Line
Provision of telecommunications and related services such as local and long distance telephone, Internet broadband and wireless services
Subsidiary
ORLEANS TV
Advisor
ERNST & YOUNG LLP
IPO date
1/29/1999
US SIC Code
4813
Company Address
1000, Progress Place, Northeast

City province or state postal code
28025, CONCORD, NC
Phone: +1 704 722 2500
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.ctc.net