Flush with new funding from Pamplona Capital, Lumos Networks said it is now in a position to pursue potential acquisitions, particularly in the data center colocation and regional fiber provider space.
Lumos Networks' current dark fiber revenues may still be relatively small at $1 million, but the telco cites growing interest from wireless operators and enterprise customers as factors that will drive up revenues in the coming year.
Lumos Networks has secured $150 million in funding Pamplona Capital Management, enabling it to pay down debt and pursue new potential organic and inorganic growth opportunities.
Lumos Networks says that as it moves forward with its fiber-to-the-cell (FTTC) initiative, it expects that legacy TDM-based T-1 revenue will fade out of its wholesale wireless backhaul revenue at some point in 2016.
Lumos Networks is putting its new 75-route mile long-haul network from Richmond to Hampton Roads, Va., to work by beginning to pre-sell services to businesses and carriers that reside along the path between these two cities.
Verizon's intention to deploy more small cells to expand wireless coverage for 4G LTE could be a gold mine wireless backhaul opportunity for a host of regional telcos like Cincinnati Bell, FairPoint Communications and Lumos Networks.
Lumos Networks CEO Tim Biltz says the company expects to see more requests for proposals (RFPs) from its wireless carrier customers for small cell backhaul and dark fiber.
Lumos reported that during the fourth quarter it continued to see growth in both fiber-to-the-cell (FTTC) and enterprise revenue, which grew 16 percent and 3 percent sequentially.
Lumos Networks has been making progress in extending its fiber network to data center locations and its recent deployment to Expedient's data center in Pittsburgh's Allegheny Center Mall (ACM) is evidence of that trend. The service provider now has 29 data centers connected to its fiber network and five in Pittsburgh alone.
Lumos' fiber-to-the-cell (FTTC) site momentum continued into the third quarter, with the company reporting that it now has a total of 708 cell sites connected to its fiber network, up 31 percent year-over-year amidst a fall in overall revenues.