Embarq – Embarking on a Strange Journey – Is This What Landline Carriers Will Be Doing From Now On?

Implications: The company has outsourced network management and operations, which I am still reeling from. Their current plan is way off what I would have expected by a typical carrier.  

Analysis: Embarg is obviously trying to conserve cash and manage what cash they do have intelligently.  On the surface their intention of not pursuing IPTV and its associated content programming makes no sense.  However, the mistake most professionals make when they view Embarq is through the lens of a big carrier.

Embarq is no a big carrier.  Embarq is for all intents and purposes a rural carrier.  When you view Embarq in the light of a rural carrier you see a company operating ina cash constrained environment.  The company’s deal DISH allows it to continue leveraging its existing voice and DSL assets.

Embarq needs to use its existing assets for as long as possible.  It appears that the goal of the company is to provide its customers with a wide array of broadband services through a series of partnerships and joint ventures.

This is a sound idea for the company’s situation and operating environment.  However, I do not believe this model can work with all landline carriers.