TDS Telecom (NYSE: TDS) benefitted by ongoing gains in both cloud-based data services and ongoing broadband expansion in Q1 2011.
During the first quarter, TDS Telecom's operating revenues rose to 1.258 billion. When broken out on a wireline perspective, TDS' ILEC division revenue rose 3.8 percent to $155.8 million, while the CLEC division's revenue fell 5.1 percent to $45.3 million.
From a larger corporate parent perspective, TDS Corp. reported that operating revenues rose 3 percent to $1.3 billion.
Here's a quick breakdown of key TDS Telecom metrics:
- Landline Losses: During the quarter, TDS lost 6,500 access lines, bringing its total to 501,200 lines. Alternatively, TDS actually added 500 new long-distance customers, with 370,600 total customers at the end of the quarter.
- Business Services: TDS Telecom business service division growth continues to be fueled by its managedIP offerings offered in both its ILEC and CLEC territories. TDS Telecom added 700 managed IP stations in Q1 2011 in its ILEC division and 3,400 in its CLEC territory.
- Broadband access: Fueled by its ongoing VDSL2 drive, TDS' ILEC division added 4,100 new broadband subscribers, while its CLEC division lost 800 broadband customers. However, in Q1, TDS reported that 60 percent of its customers continue to take both dual and triple play bundles.
"The company grew ILEC data revenues through its hosted and managed services offerings and increases in high-speed data customers," said TDS president and CEO LeRoy T. Carlson, Jr. in the earnings release. "TDS Telecom's commercial strategy continued to drive growth in managedIP stations, and the company is actively pursuing additional opportunities to build its hosted and managed services offerings."
Looking forward to the rest of 2011, the operating revenue outlook for TDS Telecom has remained unchanged at $780-$810 million.
TDS Telecom will fuel that revenue outlook with its ongoing buildout of its 10 Gbps capable Ethernet middle mile network that will serve as a foundation to deliver a host of services, including VDSL2-based broadband data and IPTV to consumers in addition to Ethernet and managedIP services to businesses.
- see the earnings release
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