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Embarq shuns wireless and IPTV while devising creative strategies that can monetize other assets.

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Embarq's ongoing quest for new ways to monetize its assets also extends to some nontraditional areas. For example, after noting that most of the calls for support related to its high-speed Internet service had nothing to do with the service but actually resulted from customer computer problems, the company created RescueIT. Huber called the offering “Embarq's version of the Geek Squad.” For a charge, RescueIT personnel will help people over the phone or, if necessary, will dispatch someone to a customer location.

THE INDEPENDENT BROTHERHOOD

Although not as high-profile as a fiber-to-the-home deployment or 4G wireless network rollout, some of Embarq's new offerings undoubtedly are underpinned by considerable investment — in human resources at least. Although Huber declined to reveal numbers, he said that in developing eGo, Embarq did considerable research to determine the appropriate form factor. The company also worked with its phone equipment supplier VTech Communications and a third-party software developer to put together the final offering.

Embarq hopes to leverage that investment not only to generate revenue gains from customers, but also to create a possible revenue source or barter currency in a different arena. Noting that other Independents might like help in developing offerings similar to those Embarq has launched, Huber extended an invitation to telcos at Insights. “We're happy to sit down and work with you to see how we can be successful,” he said.

Noting that the Independent telco industry has no organization equivalent to CableLabs that could serve as a shared development resource, Huber said he would like to fill that void. In building on that idea, he also summed up a key concept that seems to motivate much of Embarq's strategy today. “I'm a big believer in leveraging other people's assets,” he said.

HIGHLIGHTS OF EMBARQ'S FIRST QUARTER EARNINGS REPORT
Operating income increase 17%
Diluted earnings per share (year-over-year) 31%
Cash flow before dividends (year-over-year) 14%

CREATIVE COST CONTAINMENT

While new revenue sources are great, it's also more important than ever in today's telecom market to find creative ways to minimize costs. Embarq appears well aware of that reality, as its recently announced plan to outsource its network operations center to Nokia Siemens Networks reveals. Read details of this June 12 announcement at www.telephonyonline.com.

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© 2012 Penton Media Inc.

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