RLECs see no revenue growth in 2008

Embarq, Windstream forecast flat to declining year

Two of the rural telco sector’s largest carriers have predicted flat or declining revenues for 2008.

Late Thursday Embarq forecast its total revenue to fall 1.2% to 2.5% this year, ending in a range between $5.75 billion and $5.83 billion.

This morning Windstream predicted its total revenue could grow as much as 1% this year or shrink as much as 3%. The carrier expects to see between $3.16 billion and $3.29 billion this year.

Despite its efforts to curb access line erosion, Embarq expects line loss to remain unchanged or increase slightly this year from the 6.3% it lost in 2007.

Both carriers said they have not yet seen the effects of a slowing economy on their business, but Windstream, whose projections for 2008 cover a wider spread than Embarq’s, said uncertainty in the overall economy was one factor in setting their annual guidance numbers.

“Broadband growth is going to get harder and harder next year,” said Brent Whittington, Windstream’s chief financial officer, referring to 2008.