WAYNESBORO, Va.--(BUSINESS WIRE)--Lumos Networks Corp. (“Lumos Networks” or the “Company”) (NASDAQ: LMOS), a fiber-based service provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, today provided an update to the three pillars of its Fiber-to-the-Cell (“FTTC”) strategy, including Project Ark, sales targets and installation targets.
“I am pleased to announce that the core construction of Project Ark, our all-IP MPLS, MEF 2.0 Certified, Layer 2 network overlay dedicated to FTTC traffic, is now complete,” said Timothy G. Biltz, CEO of Lumos Networks. “We have begun network testing with our first Carrier customer. We continue to expect the transition of our FTTC traffic onto the Ark will begin early in the fourth quarter of 2014. Project Ark meets the most stringent of all Carrier Class requirements, including Fast Re-Routing, full redundancy and low latency high performance. Ark will initially provide up to one terabit of bandwidth, which is the equivalent to 1,500 unique FTTC towers with 1.5x tenants per site, with an average bandwidth of 400MBs per site.”
Lumos Networks has approximately 1,025 unique FTTC sites and approximately 1,350 FTTC connections under contract. Once installed, these FTTC connections, at current bandwidth levels, will generate nearly $30 million in annualized FTTC revenue. The company maintains its long-term targets of 1,500 unique FTTC towers, 2,250 total connections and $70 million in annual FTTC revenue.
“We reached these contracted FTTC milestones faster than my most optimistic expectations, as we entered 2012 with only 148 unique FTTC sites installed,” noted Timothy G. Biltz, CEO of Lumos Networks. “In August of 2013, we raised our long-term target for unique FTTC installations from 1,000 to 1,500. Further, we entered 2014 with slightly less than 1,000 connections under contract and are well on our way to reaching our target of 500-700 new unique and second FTTC connections to be contracted during 2014. We continue to have a robust FTTC sales pipeline with multiple leading wireless operators.”
Mr. Biltz finished, “Lumos Networks is also on track to meet its target for 825 unique FTTC sites installed by the end of 2014. Our FTTC installations ramped significantly sequentially in the second quarter and we expect strong sequential growth in both the third and fourth quarters.”
About Lumos Networks
Lumos Networks is a fiber-based 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 7,548 fiber route miles, Lumos Networks connects to 673 Fiber to the Cell sites, 15 commercial data centers and 1,420 on-net buildings. In 2013, Lumos Networks generated over $104 million in Data Revenue over its fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.
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