Simplifying Network Management

• Lumen introduces the network services that can all be remotely managed via the cloud.
• Services on the digital platform include connectivity, infrastructure, security, and communications services.
• Media and entertainment services are also included on the digital platform.
• Services will be available by the end of 2025, according to Lumen

The telecom-turned-service provider, Lumen Technologies, is no longer bound by the traditional limitations of physical telecom infrastructure and analog business processes. Lumen has set its sights on growth by way of digital, multi-cloud, and Network-As-A-Service (NaaS) offerings. The company’s new introduction, Lumen Connectivity Fabric, is a key step in that direction. At the core of Lumen Connectivity Fabric is the ability to remotely manage network services via the cloud. This simplifies network management and allows for greater flexibility and scalability. Lumen President and CEO, Kate Johnson, believes that the traditional telecom industry has not innovated in a long time. However, the company made some tough choices two years ago to rethink how it spent its capital. The result is now the Lumen Connectivity Fabric platform, which delivers significant value to enterprises. “We made some really tough choices two years ago to rethink how we spend our capital, and you’re seeing the fruits that those investments now with the platform and with value that we’re delivering to enterprises, and it’s still early in our transformation,” said Johnson.

Extending the Backbone for AI

• Lumen is building the backbone for AI
• Widening the company’s extensive fiber network is part of this mission
• The company’s goal is to widen its “moat,” or its expansive fiber network
• The backbone for AI requires a strong and expansive network infrastructure

Johnson also highlighted the importance of building the backbone for AI. This involves widening Lumen’s expansive fiber network, which will enable the company to deliver faster, more reliable, and more secure connectivity to its customers. To achieve this goal, Lumen is focusing on expanding its fiber network. This will provide a strong foundation for the company’s NaaS and multi-cloud offerings, as well as its digital platform. The company’s long-term goal is to widen its “moat” by expanding its fiber network. This will enable Lumen to differentiate itself from competitors and deliver exceptional value to its customers.

A Journey to Simplification and Scalability

New Cloud-Based Services

Lumen’s journey to simplification and scalability is one of digital transformation. The company is introducing new cloud-based services that are designed to simplify network management. These new services will be available on Lumen’s digital platform, which will enable enterprises to remotely manage their network services via the cloud. The digital platform will include a range of services, including media and entertainment, security, infrastructure, and communications. The company has already seen significant growth in adoption of its NaaS ports and services deployed, which is strengthening its confidence in the opportunities around consumption-based IT models.

Q1 2025 Financial Results

• Lumen’s business segment saw a decline of 3.6 percent during Q1 2025
• The growth of its Grow segment was 9.9 percent
• Lumen’s Nurture segment saw a decline of 16.6 percent

Lumen’s Q1 2025 financial results show a decline in the company’s business segment, but the company remains confident in its future growth prospects. The company’s Grow segment saw a significant increase in growth of 9.9 percent, indicating a strong demand for its higher-margin offerings, such as SASE, security, cloud, and UC collaboration services. On the other hand, the company’s Nurture segment saw a decline of 16.6 percent, indicating a challenging environment for its legacy services, such as VPN Data Networks and Ethernet services. Lumen’s Harvest segment saw a decline of 9.8 percent, indicating a decline in the company’s legacy services, including voice. The company’s Large Enterprise segment saw a decline of 3.7 percent, while the midmarket enterprise segment declined by 11.1 percent. The public sector revenue, on the other hand, increased 14.7 percent year over year.

A Shift in Focus

• Lumen has shifted its focus from consumer business to enterprise connectivity and services
• The company has largely shifted its operations in recent years towards business services, which now account for about 75 percent of its revenue

Lumen has made a significant shift in its focus from consumer business to enterprise connectivity and services. The company has largely shifted its operations in recent years towards business services, which now account for about 75 percent of its revenue. The possible sale of the company’s consumer fiber operations to AT&T has further cemented this shift in focus. The company has stated that it is proud of the consumer fiber platform it built, but the investment and return profile are not consistent with its desire to focus on the enterprise connectivity and services market. Monroe, Louisiana-based Lumen has been successful in its journey to digital transformation, with reported total revenue of $3.18 billion in Q1 2025. However, the company has yet to report a net profit. The company has faced several challenges, including the decline of its legacy services and the potential sale of its consumer fiber operations to AT&T. Nevertheless, Lumen remains confident in its future growth prospects, thanks to its focus on enterprise connectivity and services.

“Telecom hasn’t innovated in a long time. We made some really tough choices two years ago to rethink how we spend our capital, and you’re seeing the fruits that those investments now with the platform and with value that we’re delivering to enterprises, and it’s still early in our transformation,”

—Kate Johnson, Lumen President and CEO

Overall, Lumen’s future is bright, with its introduction of Lumen Connectivity Fabric and its focus on enterprise connectivity and services. The company has made significant strides in its journey to digital transformation and remains confident in its future growth prospects.