Revenue for TDS Telecom (NYSE: TDS), the wireline operating subsidiary of Telephone and Data Systems, Inc., rose 7 percent to $223.4 million with gains in triple play residential bundles and business managedIP connections.
The telco said that 70 percent of its residential customers purchased more than one service. Out of that figure, 35 percent took a double play offering, while the remaining 25 percent subscribed to a triple play bundle of voice, IPTV and data.
It saw gains in both broadband and IPTV. While TDS Telecom did lose 400 residential broadband subscribers, it added 1,500 new IPTV customers in markets where the service is available.
Despite the slight decline in broadband subscribers, the service provider continues to make progress with IPTV and broadband.
Taking a page from Google Fiber (Nasdaq: GOOG), TDS launched its "Fiberville" pre-registration campaign in Concord and parts of Knoxville, Tenn., where it plans to offer 100 Mbps fiber to the home and TDS TV services. It also made progress with broadband stimulus projects in both Arizona and Missouri.
The service provider will also bolster its broadband coverage with the completion of its acquisition of Alamogordo, N.M.-based cable operator Baja Broadband. By acquiring Baja, TDS will expand its broadband and video service base in various markets including Colorado, New Mexico, Texas and Utah.
On the business side, the service provider increased its commercial managedIP connections by 50 percent year over year. At the end of the quarter, it had a total of 19,900 managedIP customers.
"TDS Telecom continued to increase ILEC residential broadband and video penetration in the quarter, and commercial managedIP connections increased 50 percent year over year," said LeRoy T. Carlson, Jr., TDS president and CEO, in the earnings release. "TDS Telecom's revenue growth in the quarter was driven primarily by our hosted and managed services acquisitions, where we are focused on offering comprehensive, end-to-end IT solutions for mid-market customers."
TDS Telecom's parent Telephone and Data Systems, Inc., reported revenues of $1.23 billion, down from $1.32 billion in Q2 2012.
Shares of Telephone and Data Systems, Inc. were listed at $26.80, up 1 cent, or 0.04 percent in Friday morning trading on the New York Stock Exchange.
- see the earnings release
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