Today's Top Stories Frontier Communications took a jab at Google Fiber (NASDAQ: GOOG), which is considering rolling out its 1 Gbps fiber to the home (FTTH) in Portland, Ore., later this year, claiming that the Internet giant is trying to offer consumers what they don't need, reports The Oregonian.  | | Wilderotter | "Today it's about the hype, because Google has hyped the gig," said Maggie Wilderotter, CEO and chairwoman of Frontier, during a company board meeting in Portland this week.
Wilderotter said that Google is touting speeds that only a small minority of services could take advantage of while confusing customers. "We have to take the mystery and the technology out of the experience for the user because it's a bit disrespectful to speak a language our customers don't understand."
So how is Frontier, which already enjoys its own FTTH monopoly in Portland thanks to its acquisition of Verizon's (NYSE: VZ) FiOS service in 2010, going to battle Google Fiber's possible entry into the city? The telco said that its answer will be to provide better prices for more "modest speeds." Wilderotter said that 10-12 Mbps will be enough bandwidth in the near-term. She added that the company is upgrading its rural markets to support those speeds over its existing copper network where it does not provide FTTH today. Today, Frontier offers a 15 Mbps FiOS broadband speed tier for $30 a month. That's not to say that Frontier is ruling out providing its own 1 Gbps FTTH service, however. Wilderotter said that the company will offer 1 Gbps speeds within "the next several quarters" when it sees services come on the market that can take advantage of those higher speeds. For more:
- The Oregonian has this article Related articles:
Frontier gets FCC approval to proceed with AT&T Connecticut wireline network acquisition
Frontier taps Paul Quick to head up Connecticut operations, progresses with AT&T wireline acquisition
Frontier, CWA Nebraska hammer out new labor agreement
Verizon FiOS, AT&T U-verse trail Frontier and CenturyLink on Netflix's June speed index
Frontier text-enables landline phone numbers for business customers Read more about: FTTH, 1 Gbps
back to top
| This week's sponsors are F5 and Cloudmark. |  | eBook | Keeping Wireless Networks and Devices Secure With the growth of smartphones and tablets, plus the onslaught of the Internet of Things, there is an even greater need to ensure that mobile networks are secure. FierceWireless explores the various types of security threats that operators must be on the lookout for as well as discusses various solutions to preventing any type of breach. Download today. |
Consolidated Communications reported that second-quarter data, video and Internet sales were a key revenue driver, rising to $69.5 million, but legacy declines offset total company growth. The company reported a 5.5 increase in commercial sales year-over-year. During the quarter, the service provider added 7,931 data connections, ending the quarter with a total of 259,225 connections. Another area of growth was video, adding 2,116 new subscribers and ending the period with a total of 111,211 customers. "I'm pleased with the overall results in the quarter and the continued success in transforming the business away from declining legacy revenues and into a growing broadband company," said Bob Currey, chairman and CEO, in the earnings release. Similar to earlier quarters, growth its data and video revenues and local calling services were offset by decreases in traditional voice network access and subsidy revenues, meaning that overall revenue remained flat at $151 million year-over-year. Per the ongoing industry trend, the telco lost 12,595 landline connections in its ILEC territory, bringing it to a total of 249,986 lines at the end of the quarter. To enhance its data and fiber holdings, the service provider announced earlier this month that it would purchase fellow independent ILEC Enventis for $350 million in stock. Purchasing Enventis is important, particularly as it looks to expand its commercial and wholesale business base. Enventis comes to the table with 4,200 route miles of fiber serving its facilities-based business and wholesale customers in Minnesota and into Iowa, North Dakota, South Dakota and Wisconsin. "The acquisition strengthens the diversification of our markets and fiber driven strategy, and positions us well for the future with an attractive dividend and an improved capital structure," Currey said. Shares of Consolidated closed at $ 22.38, down 40 cents or 1.76 percent, at the close of Thursday afternoon trading on the Nasdaq stock exchange. For more:
- see the earnings release Special report: Wireline telecom earnings in the second quarter of 2014 Editor's Corner: Consolidated's Enventis deal shows ongoing need to diversify its revenue base Related articles:
Consolidated to acquire Enventis for $350M in stock, enhancing fiber network reach
Enventis expands cloud services to include Wi-Fi and UC Read more about: Consolidated Communications
back to top
Windstream is enhancing its bond with its managed service customer base by making Avaya's Aura Unified Communications (UC) solution as a cloud-based offering available on a national basis via its Unified Communications as a Service (UCaaS) product. Avaya said that Windstream, which is one of the vendor's channel partners, is the first North American service provider to make its UC solution available as a cloud-based offering. The service provider can use this solution to target new and existing customers in the mid-size to large enterprise market that traditional telcos like AT&T (NYSE: T) and Verizon (NYSE: VZ) have largely ignored in favor of large global accounts. Customers will be able to get access to all of Avaya Aura's capabilities, including VoIP, unified messaging, desktop video and various other mobility collaborative solutions. Similar to its other managed service offerings, the UCaaS solution will be supported by Windstream's growing set of data centers and delivered over its MPLS network. A key driver of this platform is flexibility. Avaya's utility-based consumption model allows both the cloud provider and their customers to pay for only the service they use. By eliminating the requirement to preset the number of licenses, customers can scale the services up or down depending on their particular needs. Timing for this alliance could not be better. A recent Frost & Sullivan report forecast that the hosted IP telephony and UCC market is expected to grow to $13.23 billion by 2020. Having this option available will enable Windstream to further its bond with its growing enterprise base. While it won't announce its second-quarter 2014 earnings until Aug. 7, the service provider reported in the first quarter that sales of IP-based data and next-gen services, data and integrated services revenues grew 3 percent to $414 million. For more:
- see the release Editor's Corner: Will AT&T, Verizon follow Windstream down the REIT asset path? Related articles:
Windstream to spin off network assets into REIT
Windstream wins DoD contract, goes nationwide with UCaaS
Windstream to reach 75,000 rural households with broadband stimulus grants
Windstream's Gardner: Comcast-Time Warner Cable merger won't change near-term SMB focus Read more about: AT&T, Avaya
back to top
TDS Telecom's commercial One Neck IT Solutions subsidiary was the star performer in its portfolio, with revenues of $67.9 million, up from $41.4 million in the same period a year ago. During the quarter, the service provider added 2,300 new managedIP subscribers, bringing its total to 133,300. managedIP service revenues also rose 19 percent during the period to $25.7 million from $4.37 million in the same period a year ago. Inside the HMS division, equipment sales were also a key factor, with revenues of $40.4 million, up from $18.2 million in the second quarter of 2013. "In our hosted and managed services business, OneNeck IT Solutions, we increased revenues through growth in recurring services and through the effect of acquisitions," said LeRoy T. Carlson Jr., TDS president and CEO, in the earnings release. However, overall commercial revenues were impacted by voice and broadband declines. The telco ended the quarter with a total of 206,200 voice and 26,000 broadband customers, down from 229,100 and 28,200, respectively, in the second quarter of 2013. Similar to earlier quarters, TDS Telecom saw ongoing gains in the residential side of its business with growing adoption of its TV and broadband services. During the quarter, it added 3,700 new broadband subscribers and 2,300 IPTV subscribers. The service provider also saw broadband ARPU rise slightly to $41.05 from $40.10. To make its broadband offerings more compelling, the service provider began rolling out its 1 Gbps fiber to the home (FTTH) service in both New London and Hollis, N.H.. It also completed a number of broadband stimulus builds, including two in Maine and Mississippi that will extend services to a combined 2,850 households. However, the telco continued to see the ongoing effect of wireline customers cutting ties with traditional phone service. During the quarter, it lost 2,600 residential voice lines, ending the quarter with a total of 346,100 lines. TDS Telecom's parent company Telephone and Data Systems reported total operating revenues of $1.24 billion, up from $1.23 billion in the same period a year ago. Net loss attributable to TDS shareholders and related negative diluted earnings per share were $22 million and 20 cents, respectively, for the second quarter of 2014 compared with net income of $156.1 million and earnings per share of $1.42 in the second quarter of 2013. The company has retained its revenue guidance for TDS Telecom in 2014 at $1.05 billion to $1.1 billion. Shares of TDS were listed at $24.37, down 63 cents or 2.52 percent, in Friday morning trading on the New York Stock Exchange. For more:
- see the earnings release Special report: Wireline telecom earnings in the second quarter of 2014 Related articles:
TDS adds New London, N.H., to its 1 Gig fiber-based broadband list
TDS' Salem, Ky., broadband stimulus project extends service to 650 new homes
TDS puts finishing touches on Virginia broadband stimulus project
TDS extends broadband around Medford and Stetsonville, Wis., serving 1,400 residents
TDS Telecom taps Bandwidth to create national VoIP-based teleworker product Read more about: Tds Telecom, second quarter earnings 2014
back to top
Shentel reported that its wireline segment operating income was $3.8 million, down both sequentially and year-over-year from $4.4 million in the first quarter of 2014 and $4 million in the second quarter of 2013 due to expected legacy declines. The company's traditional access voice lines declined year-over-year from 22,465 in the second quarter of 2013 to end the quarter with a total of 21,842 lines. Wireline segment adjusted OIBDA was $6.5 million, as compared to $7.0 million in the second quarter of 2013. Broadband penetration in the ILEC area is now at 58.2 percent and it had a total of 5,904 video subscribers. It added 75 broadband subscribers while losing 438 video subscribers. One bright spot in the wireline segment was its fiber products. During the quarter, fiber lease revenue was $7.9 million, up year-over-year from $7.1 million in the same period a year ago. However, non-affiliate external fiber lease contract revenue was $4.9 million, down from $5.2 million in the second quarter of 2013. At the end of the quarter, it added 213 fiber miles and three fiber route miles to end the quarter with a total of 85,348 and 1,455 total miles, respectively. From an overall financial standpoint, total revenues were $81.4 million, up 5.1 percent year-over-year from $77.5 million in the second quarter of 2013. The company attributes the revenue increase to growth in subscribers and revenue per subscriber. Company net income was also up, rising 9.9 percent to $8.6 million compared to $7.8 million in the second quarter of 2013. Operating income was $15.8 million, up from $14.5 million in the same quarter last year. "During the second quarter we achieved improved net income largely as a result of revenue and subscriber growth in both the cable and wireless segments," said Christopher E. French, president and CEO of Shentel, in the earnings release. "Our regional efforts to promote our upgraded networks and improved service are gaining traction as demonstrated by increases in average revenue per customer." Shares of Shentel closed $27.71, down $1.05 or 3.65 percent, at end of Thursday trading on the Nasdaq stock exchange. For more:
- see the earnings release Special report: Wireline telecom earnings in the second quarter of 2014 Related articles:
Shentel's Q1 fiber lease revenue rose to $8.1M
Shentel's Q4 2013 wireline fiber sales rise to $21.8M
Shentel's wireline revenue remains flat at $3.3M, but fiber leasing grows 13 percent
Shentel realigns management team around key operational segments Read more about: Broadband Subscribers, Capacity Fiber, Shentel
back to top
| 
No comments:
Post a Comment
Keep a civil tongue.