WAYNESBORO, Va.--(BUSINESS WIRE)--Lumos Networks Corp. (“Lumos Networks” or the “Company”) (Nasdaq: LMOS), a leading fiber-based provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, announced today that it has officially named the Hampton Roads/Norfolk Metro Market as the Company’s 24th and largest Enterprise market.
This market, additionally known as “Tidewater,” will encompass the metro areas of Norfolk, Hampton, Chesapeake, Portsmouth and Suffolk, Newport News and Virginia Beach. Once Lumos’ approximately 270-mile dense metro fiber network is completed by year-end 2015, the Company expects to have the largest fiber network in the market designed to target incremental Enterprise, Data Center and Fiber to the Cell (“FTTC”) opportunities as well as Carrier End User opportunities through its wholesale partnership program.
This market, with a population of approximately 1.7 million, is the 37th largest metropolitan area in the United States, and is home to three Fortune 500 companies. According to the Hampton Roads Economic Development Alliance (“HREDA”), there are approximately 30 companies with more than 2,000 employees in this market. There are nine active U.S. military installations in the region, employing 102,000 active duty personnel and over 40,000 civilian personnel. According to HREDA, there are 168 international firms representing 28 countries in this market.
"Greater Norfolk Corporation welcomes Lumos Networks to town and thanks them for their significant investment in our region,” said Charles V. McPhillips, President of Greater Norfolk Corporation. “The people and technology that Lumos brings to our market will serve those of us in the business, non-profit and educational communities in need of access to a high-quality fiber network, and we are excited about their commitment to be active in the civic life of our region," he added.
The region is also home to a number of leading higher education entities, including eight universities and four community colleges. Over 103,000 students attend these institutions, which include: The College of William and Mary, Old Dominion University, Norfolk State University, Christopher Newport University, Virginia Wesleyan College and branch campuses of the Virginia Community College system. The Port of Hampton Roads is a significant transportation hub, ranking third in the country in total import and export tonnage, behind only New Orleans and Houston.
HREDA estimates that the healthcare and life science industries in the state of Virginia contribute about $7.4 billion in annual economic output and there are more than 50 medical corporations in the Hampton Roads market. These two industries also employ about 65,000 people in this market.
“The opening of our 24th market is a game changing event for Lumos Networks,” said Timothy G. Biltz, President and CEO of Lumos Networks. “This represents a key milestone of our 665-mile network expansion, which was underpinned by a 257 FTTC site contract with a national wireless carrier, and it also includes a significant broadening of our Richmond fiber network.”
Mr. Biltz continued, “We estimate that our total market expansion will increase our Enterprise addressable market by about 60%, or an incremental $135 million in annual data spend. Longer term, our target is to reach approximately 17% Enterprise market share in these expansion markets, which would match our current estimated share in our core markets. ”
Joseph E. McCourt, Chief Revenue Officer of Lumos Networks added, “We fully expect that the large and vibrant Hampton Roads/Norfolk market will be a key component of our data growth story going forward. Right out of the gate, we are seeing strong demand from existing customers seeking additional connectivity for new sites in the area and growing activity with potential new customers. In fact, we have already signed three Enterprise contracts totaling approximately $150,000 in annual revenue with two new large enterprises and one new location with an existing customer.”
Lumos Networks Hampton Roads Launch Event
Lumos is hosting its Hampton Roads fiber network launch event at the Half Moon Cruise and Celebration Center in Norfolk, Virginia from 6-9pm on August 10, 2015. For more information, please contact Ericka Duncan at email@example.com.
About Lumos Networks
Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end to end connectivity in 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 8,100 fiber route miles and over 369,000 total fiber strand miles, Lumos Networks connects 976 unique FTTC sites, 1,307 total FTTC connections, 33 data centers, including seven company owned co-location facilities, 1,574 on-net buildings and approximately 2,560 total on-net locations. In 2014, Lumos Networks generated over $106 million in data revenue and nearly $52 million in Adjusted EBITDA over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.
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