SureWest (Nasdaq: SURW) is capitalizing on the growth of its Fiber to the Home (FTTH) network in Olathe, Kan. with plans to now connect the network to an additional 5,000 homes.
When complete, the Kansas-based FTTH network, which SureWest began to build through its acquisition of the former Everest Broadband, will reach 15,500 more homes this year.
Steve Oldham, SureWest's president and chief executive officer, said that its "goal is to reach 35-40 percent in total penetration on the new fiber homes, and in just a month we have already achieved 18 percent sales penetration on the first 2,000, adding that "in some areas, we are as high as 33 percent."
Although it expects capex spending for 2012 to remain at $60-$70 million range and $55-$65 million range in 2013, SureWest plans to continue investing in high-margin growth opportunities including the Kansas FTTH market.
Since it started passing homes with fiber in 2009 in Kansas City--11,600 in total--SureWest reported that it has 34 percent penetration, while the existing HFC network has 40 percent penetration levels.
What's interesting about SureWest's fiber drive, however, is that it comes not long after Google announced it would bring its much hyped 1 Gbps service to both Kansas City, Kansas and now Kansas City, Mo.
- see the release
SureWest broadband drives 1% revenue increase in Q1
SureWest Communications continued to ride the broadband wave in Q4
SureWest profits from ongoing move to broadband
Steve Oldham, President and CEO, SureWest - rising independent ILEC stars