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.
Consolidated Communications' move to acquire fellow independent telco Enventis for $350 million may not be on par with the blockbuster deals its independent ILEC counterparts CenturyLink and Windstream have made in recent years, but it's significant in that it is a sign of another smaller telco branching out of its all-voice service roots.
Consolidated Communications has reached an agreement to acquire all 13.8 million shares of Enventis, formerly HickoryTech, for about $350 million, marking yet another element in the ongoing consolidation of the independent telco market.
Consolidated Communications might not be nearly the size of its larger ILEC counterparts, such as CenturyLink and Windstream, but the telco has adopted a similar growth strategy that includes a mix of organic growth and the acquisition of other complementary properties.
Consolidated Communications reported that a 21 percent rise in Metro Ethernet revenue drove up overall first-quarter 2014 data, video and Internet services revenue to $68.2 million.
Consolidated Communications reported that fourth-quarter 2013 revenues declined year-over-year to $148 million as increases in data and video revenues were more than offset by declines in subsidies and network access revenues.
The time to innovate couldn't be any more pressing for the wireline telecom industry as traditional operators look to shut down 100-year-old TDM networks and transition to all-IP infrastructure. FierceTelecom profiles eight up-and-coming executives meeting the demands of a changing landscape.
Time Warner Cable and other telecom providers in the Dallas-Fort Worth area will face increased competition for their commercial high-speed Internet, Ethernet and phone products from Consolidated Communications.
Consolidated Communications is putting its Texas fiber network to work by expanding its enterprise and commercial services reach into the Dallas-Fort Worth market.
Consolidated Communications may still be integrating SureWest into its fold, but according to CFO Steve Childers the service provider is hungry to pursue new deals that allow it to diversify its revenue streams.