Windstream has announced the corporation will be filing “Chapter 11” immediately, also referred to as bankruptcy. This decision is designed to help prevent any negative impact on current subscribers.
There are hundreds of Internet Service Providers (ISP) in the United States, whether it be dial-up, DSL, cable, fiber, satellite, or wireless. Windstream is a DSL company which typically serves the rural communities of Armstrong, Clarion, Indiana, and Westmoreland counties.
As of recent court documents obtained by KNNP-TV staff, Windstream is currently in debt over $5.6-billion dollars. Windstream has continued to lose subscribers due to cable and wireless companies providing a cheaper monthly rate, with speeds up to 10-times faster.
In 2018, Windstream lost over $102-million-dollars at the end of the year reporting cycle. The entire net income was valued at $1.42-billion dollars for 2018.
Another important issue is WIndstream started to receive $175-million dollars in federal funding yearly. This money is used strictly for deploying high-speed internet to rural homes and businesses. There will no longer be any federal funding given to Windstream after the year 2020.
In an emergency agreement, Windstream received a $1-billion dollar loan from Citigroup Global Markets.
Windstream has been in the negative spotlight for several years. A viral internet post made in 2015 was when Windstream invoiced a small business owner for over $383,000 to extend a fiber cable a few miles to receive high-speed internet. After making the post on Facebook, a larger competitor only charged the business owner roughly $42,000, which is nearly “at cost”.