Integra Telecom wants to be a key component of the US communications network. The facilities-based telecommunications carrier provides local and long-distance telephony and broadband Internet largely to small to midsized businesses, as well as some residential customers in 35 metropolitan areas in 11 mostly western states. Its enterprise data services include managed network services, data and server colocation, and hosted cloud computing services. Integra also sells its products to other carriers on a wholesale basis through its Electric Lightwave division. The company serves the energy, food, broadcasting, and real estate industries, among others. Clients have included SolarWorld and the Red Cross.
The company's core line-based service segment (85% of sales) consists mainly of telephone and data connections. Decreased demand led to a slight slip in revenue for this business in 2011. Meanwhile, sales made by Integra's business telephone division rose more than one-third for the year, reflecting the growing focus on enterprise customers as residential accounts dwindle.
Overall, however, the company's total revenue of $599 million was down from previous years, and Integra lost money for the year due in part to higher operating costs, particularly in the area of sales, general, and administrative expenses.
Integra allotted 75% of its 2012 capital spending on its enterprise services and wholesale segments as it build them up to counter the losses the company is suffering as landline telephone sales shrinks. Its network expansion efforts that year included installations in Phoenix and other parts of Arizona. Also in 2012 Integra introduced fiber-based wavelength services to enable metro-area and long-haul private networking for clients with a need for high-bandwidth network connections between their facilities. As part of this package, the company offers disaster recovery, optical storage, and other features.
This continues Integra's ongoing effort to expand and diversify its commercial business, which began with the 2010 introduction of an online data storage service aimed at businesses without the necessary IT resources to host their own storage systems. As part of this, the company began to offer managed secure data storage, backup, and access services from its data center.
Integra was co-founded in 1996 by director and former CEO Dudley Smith. Unprofitable Integra reached an agreement with lenders in 2009 to enact a financial restructuring that reduced its debt burden from $1.3 billion to about $600 million, and resulted in profitable years in 2009 and 2010. As a result, Goldman Sachs became an investor in the company. In 2012 Searchlight Capital Partners, L.P. agreed to acquire all of the equity interests in Integra held by its largest shareholder Goldman Sachs. The transaction is expected to close in the fourth quarter of 2012. – less