CenturyTel Communications today said in its third-quarter earnings call that it has soft launched a switched digital video product in La Crosse, Wis., and will offer commercial service during the fourth quarter. However, Glenn Post, CEO and chairman, said the company wasn't going to rush out to replicate that effort in its other markets for some time.

Previously, the company said it was trying to work with other independent telcos to contain costs of the equipment needed to provide video over its existing wireline network. During today's call, Post said, "We expect a limited expansion of this service until equipment prices reach a more affordable level."

At the same time, the company reported its best-ever quarter for DSL, adding 25,000 customers in the three-month period to bring its total to 220,000 subscribers representing a penetration rate of 13.4% of all DSL-enabled lines. About 74% of CenturyTel access lines have some form of DSL available. Going forward, the company is planning to spend most of its effort on increasing penetration in those markets where it already has DSL, and not on expanding the service.

On an overall capital expense basis, the company plans to spend close to its full budget for the remainder of the year, but is likely to cut that back for 2006, though it did not provide any specific guidance.

"Our approach to wireless doesn't really require any capital," Post said, noting that CenturyTel is using an MVNO model. "Same thing with the DBS we're offering. Because we've made really a significant investment over the past couple of years we expect that capital expense budget [in 2006] to be less than we had in 2005."