Spinning off CenturyLink’s consumer business also would involve dividing a network and other operations that serve both the consumer and business sides of the company. This would “simplistically imply roughly $300-$600 million in value destruction from separating the businesses,” according to MoffettNathanson.
Another concern is whether it would receive necessary approvals from state public utility commissions.
The analysts also said CenturyLink’s opportunity to provide connectivity for small cells is limited because small cells will be deployed only in densely populated areas and CenturyLink is the incumbent local carrier in just two of the nation’s 50 most densely populated cities.
However, MoffettNathanson said the FCC’s plans for a new program to expand access to voice and broadband services for areas where they are unavailable is a positive as CenturyLink was one of the largest recipients of Connect America Fund (CAF) funding.