 CenturyLink also acquired Savvis. The combination of Savvis and Qwest increases CenturyLink's offerings for enterprise customers. Savvis offers hosting, cloud computing, and managed computing at its data centers in the United States and Canada as well as those in the United Kingdom, Singapore, and Japan. It also has networks in South Africa, Australia, China, the Middle East, and Europe. Qwest offered hosting and data center services to business customers in the United States. The Savvis acquisition further broadens Century- Link's offerings to enterprises with national and international branch offices. CenturyLin now has 47,500 employees and is the third largest phone company by telephone lines in the United States. Its territory now includes 37 states. How- ever, much of its territory is still in rural areas with mainly residential custom- ers. Moreover, CenturyLink, along with other incumbent telephone companies, is losing home telephone customers as residential subscribers continue to drop home phones for mobile service. Neither the former Qwest nor CenturyLink owned a mobile network. They both resold wireless services on Verizon Mobile's network. Profit margins on resale are lower than those on direct sales. Moreover, there are fewer managed service offerings available on resale for mobile devices geared to larger, more profitable enterprise customers. CenturyLink has not announced intentions to purchase or develop a mobile network. It does have a more robust offering for enterprise customers as the result of its purchases of Qwest and Savvis. CenturyLink has been profitable throughout its history, despite its declining number of landlines. Fees generated by intercarrier compensation have aided earnings. It's unknown how future reductions in these fees will impact CenturyLink or if it will recoup some of these declines through federal subsidies for broadband. REGULATORY ISSUES A major issue facing United States government regulators is how to cost-effectively support broadband services in rural, low-income,