in Pennsylvania. was headquartered in Lexcom Inc.: Was a small phone company in Kansas. Windstream North Carolina. was formed through its Iowa Telecom: merger with Valor Com- Local phone company in Iowa and Minnesota. munications, the local phone company head- NuVox Inc.: 2010 CLEC with approximately 90,000 quartered in Arkansas. business customers. Windstream operates in Q-Comm Corp.: Regional fiber network. Provided mainly rural areas in the local phone services in Indiana. South. Its acquisitions in Hosted Solutions: Provided hosting and cloud services 2010 and 2011 provide to businesses and co-location ser- resources for its cur- vices to carriers. rent focus on broadband and enterprise services. Paetec Holding Adds seven data centers and plans Majority of revenue Corporation for an additional five that support from broadband and managed and cloud services. Paetec enterprise services. also has a 36,700-mile fiber network and a large portfolio of business and commercial customers. Brings Windstream coverage to parts of 46 states and additional urban areas. Independent Telephone Companies Independent telephone companies are incumbent local telephone companies that have never been part of the former AT&T's Bell System. They are often located in rural areas that AT&T had no interest in serving and in small and midsize cities. Like Veri- zon and the current AT&T, many of the largest independent phone companies have purchased competitors and expanded into new data services. Examples of large inde- pendent phone companies include Cincinnati Bell, Frontier Communications, Fair- point, and Windstream. Table 3-6 lists the acquisitions that have enabled Windstream to grow and enter new markets. The State of the Industry Because many customers have replaced home telephones with cell phones, rev- enues from voice calling have declined sharply. This has motivated large independent telephone companies to branch out into other services including cloud computing and managed services. Managed services are functions such as sec