MTS Allstream (Toronto: MBT.TO) believes that its Fiber to the X (FTTX) strategy, one that employs a mix of Fiber to the Home (FTTH) and Fiber to the Node/Curb (FTTN/C) with VDSL, will be a new residential and business revenue winner.
With plans to invest $122 million in its last-mile FTTX network, MTS Allstream will extend its new fiber-based broadband services (both FTTH and FTTN) to at least 65 percent of homes in Manitoba Province, Canada by 2015. When MTS completes the network rollout in 2015, which will offer services including HD IPTV and broadband Internet through its 'FiON' brand, it will pass about 120,000 homes in the 20 communities it serves.
But while MTS Allstream is bullish about its FTTX prospects, it's not turning its back on its existing copper network. The service provider plans to integrate the FTTH rollout with its already deployed hybrid copper/fiber VDSL networks in Winnipeg, Brandon and Portage.
While MTS Allstream's aggressive FTTX push may be an eventual revenue driver, its near-term financial results aren't all that impressive. In Q2 2010, company revenues declined year-on-year to $430 million from $439 million, while EBITDA rose slightly from $136 to $137 million.
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