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Phone Co. Embarq Does Well in First Year

Thursday, May 17, 2007 8:52:03 PM
By DAVID TWIDDY

Embarq's logo is pictured at the company's headquarters in Overland Park, Kan. Thursday, May 17, 2007. Signs are encouraging for the nation's fourth-largest local telephone provider a year after spinning off from Sprint Nextel Corp. (AP Photo/Charlie Riedel)OVERLAND PARK, Kan. (AP) - When Embarq Corp. was spun off by Sprint Nextel Corp. a year ago this week, it was expected to follow the troubling example of most traditional telephone companies — a steady decline amid the growing flight of customers to phone service from cable TV, cellular and Internet providers.

A year later, the nation's fourth-largest traditional phone company has certainly lost subscribers. Access lines are down 5.8 percent to 6.84 million.

But Embarq has drawn the industry's attention by actually slowing the exodus. In the last two fiscal quarters, the company lost fewer lines than it did in the same periods a year earlier, while increasing its business lines.


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