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Windstream Offers Internet Security

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Windstream Corporation (WIN - Free Report) has recently unveiled its latest Internet security solution, Endpoint Security Protection. The latest offering will expand the company’s product portfolio, primarily in the enterprise segment and we expect it to propel customer accretion alongside revenue growth.

Endpoint Security Protection, a product of McAfee, provides simple security option for small business organizations. It provides a single solution against multiple Internet security threats like virus, spyware, spam, hacking and phishing.

Windstream remains focused on expanding its service offerings to businesses with VoIP services, data bundles, cloud and managed services. In addition, Windstream has re-branded its consumer offerings with advanced Internet and entertainment services.

The company gained significant traction in the enterprise market by acquiring PAETEC Holding Corp in December 2011. Besides financial benefits, the acquisition has catapulted significant growth in enterprise market with nationwide coverage of fiber network cables.

The acquisition increased opportunities in cloud computing and managed services and attracted business customers across many locations. Windstream is also planning to introduce customized business solutions that will help improve its competitive position in the industry. We believe the launch of Endpoint Security Protection is concurrent with the company’s plan to tap opportunities arising from IT needs within small and medium business segments.

However, Windstream faces the major risk of access line losses that are negatively affecting its revenue in the wireline business unit. Regulatory issues coupled with the constant pressure of technology innovation and next-generation product and service offerings are the other headwinds. Further, the company faces stiff competition from peers like Frontier Communications (FTR - Free Report) .

Windstream has a Zacks Rank #4 (Sell). For the long term, we have our Neutral recommendation on the stock.

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