$Lumen Technologies (LUMN.US)$ Know what you are buying; ign...
$Lumen Technologies (LUMN.US)$
Know what you are buying; ignore short-term fluctuations as Lumen has significant assets. Without the debt used to finance new growth, we wouldn’t have seen the recent share price rise.
Lumen’s debt could decrease as the U.S. government continues transitioning legacy phone lines to fiber and VoIP systems. This shift is part of a broader initiative to phase out POTS (Plain Old Telephone Service) and copper networks, which are expensive to maintain. The move to fiber-optic and VoIP systems could reduce costs by 30-60% in sectors that rely on always-on business applications, like security systems and elevators. These savings would help organizations, including the government, reduce operational costs.
For Lumen, this transition offers a twofold benefit: they can serve the growing fiber network and potentially reduce debt pressures if market conditions improve (e.g., through rate cuts or savings from infrastructure investments). Lumen owns a vast fiber-optic network and is actively modernizing legacy systems, aligning with government and private sector demand for better, scalable communication infrastructure.
Lumen also holds contracts with several federal agencies, including the Department of Defense, to manage fiber infrastructure, placing it in a key position as the shift from copper to fiber continues.
Know what you are buying; ignore short-term fluctuations as Lumen has significant assets. Without the debt used to finance new growth, we wouldn’t have seen the recent share price rise.
Lumen’s debt could decrease as the U.S. government continues transitioning legacy phone lines to fiber and VoIP systems. This shift is part of a broader initiative to phase out POTS (Plain Old Telephone Service) and copper networks, which are expensive to maintain. The move to fiber-optic and VoIP systems could reduce costs by 30-60% in sectors that rely on always-on business applications, like security systems and elevators. These savings would help organizations, including the government, reduce operational costs.
For Lumen, this transition offers a twofold benefit: they can serve the growing fiber network and potentially reduce debt pressures if market conditions improve (e.g., through rate cuts or savings from infrastructure investments). Lumen owns a vast fiber-optic network and is actively modernizing legacy systems, aligning with government and private sector demand for better, scalable communication infrastructure.
Lumen also holds contracts with several federal agencies, including the Department of Defense, to manage fiber infrastructure, placing it in a key position as the shift from copper to fiber continues.
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