WAYNESBORO, Va.--(BUSINESS WIRE)--
Lumos Networks Corp. (“Lumos Networks” or the “Company”) (NASDAQ:LMOS, news, filings), a leading fiber-based provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, announced that its sales force has begun pre-selling its 75 route mile long-haul network from Richmond to Hampton Roads. This route, which is expected to be lit for service in the third quarter of 2015, will mark the initial segment of the Company’s approximately 665 fiber route mile network expansion to be available for pre-sale activities.
This market expansion, underpinned by a 12-year contract for 269 total Fiber to the Cell (“FTTC”) connections, including 257 unique sites, with a major national wireless carrier, will significantly expand the Company’s footprint in Richmond and establish new footprint in the metro markets of Petersburg, Hampton Roads and Norfolk, Virginia. It is estimated that the footprint expansion will increase the annual Enterprise addressable market by approximately $135 million, or an increase of roughly 60%.
Joseph E. McCourt, Chief Revenue Officer for Lumos Networks said, “We are excited about launching pre-sale activities along this critical new 75-mile fiber route connecting Richmond and the Tidewater area of Virginia. Initially, we will utilize existing sales resources in these efforts, but as we move through 2015, we expect to add headcount, particularly in the Norfolk area, as demand requires.”
Mr. McCourt continued, “Our sales force has already begun to identify a variety of key Enterprise, Data Center, Transport and Fiber to the Cell opportunities along this route. Additionally, this new route provides our Carrier End User sales team with lucrative opportunities to pursue as a part of our partnership program with approximately 30 fiber, telecom and cable providers with whom we have MSAs.”
“On our fourth quarter earnings call, we announced that we would complete our 665-mile fiber network expansion project in the first half of 2016 rather than our prior expectation for the second half of 2016,” noted Craig Drinkhall, Chief Technology Officer of Lumos Networks. “My engineering, network planning and installation teams are primed to hit these milestones.”
Timothy G, Biltz said, “The completion of this network expansion is key to the acceleration of our transformation into a fiber bandwidth company with a dominant Mid-Atlantic footprint and a revenue base constituted increasingly from long-term contracts with Enterprise and Carrier customers utilizing MPLS, Ethernet, wave length, and ultimately, dark fiber services. We expect this market expansion will be a key component of our plans to accelerate our data growth as we move into 2016.”
About Lumos Networks
Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier and Enterprise customers, offering end to end connectivity in 23 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 7,822 fiber route miles and over 354,000 total fiber strand miles, Lumos Networks connects 858 unique Fiber to the Cell sites, 31 data centers, 1,477 on-net buildings. In 2014, Lumos Networks generated over $106 million in data revenue over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.
SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS
Any statements contained in this news release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,” “targets,” “projects,” “should,” “may,” “will” and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: rapid development and intense competition in the telecommunications and high speed data transport industry; our ability to offset expected revenue declines in legacy voice and access products related to the recent regulatory actions, wireless substitution, technology changes and other factors; our ability to effectively allocate capital and implement our “edge-out” expansion plans in a timely manner; our ability to complete customer installations in a timely manner; adverse economic conditions; operating and financial restrictions imposed by our senior credit facility; our cash and capital requirements; declining prices for our services; our ability to maintain and enhance our network; the potential to experience a high rate of customer turnover; federal and state regulatory fees, requirements and developments; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our Annual Report for the year ended December 31, 2014.
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