Consolidated Communications CEO Bob Udell said the company is on track to meet its 2021 fiber development goal. And he hinted that the company is preparing to unveil a big, new ad campaign that , he hopes, will accelerate the earnings of Consolidated fiber customers.
“We will roll out a new brand representing a premium fiber product and a transformative customer experience, giving customers exactly what they have asked for from their broadband service provider,” he said at the the company’s recent quarterly conference call, according to a Alpha transcription search of the event. He added that the campaign is expected to launch in mid-November and could also include an updated pricing, sales and installation strategy involving mesh Wi-Fi, digital sign-up tools and “extremely competitive pricing. for symmetrical concert internet. ”
Udell continued, “We are very excited to launch our new brand in the next 30 days and the differentiated customer experience it represents, which will allow us to become the broadband provider of choice. ”
Since sign a $ 425 million deal with private equity firm Searchlight Capital Partners last year, Consolidated moved forward on its five-year plan to upgrade parts of its aging DSL network with fiber. The company’s ultimate goal is to provide fast connections to 1.6 million locations in California, Minnesota, Texas, Illinois, Pennsylvania, Vermont, New Hampshire and Maine ?? about 70% of its current network ?? with XGS-PON fiber technology by 2026.
So far, Consolidated has said it is on track to cover 300,000 locations with fiber optic by the end of this year. The average cost for the company to reach each of these locations is approximately $ 550. Next year, he hopes to increase that number of buildouts to 400,000.
Based on its initial findings, the company expects at least 40% of potential customers covered in these regions to sign up for its services. This would pose a competitive threat to Comcast and Charter Communications, which currently offer cable Internet services in some of these locations.
In its most recent quarter, Consolidated said it added approximately 4,000 gigabit fiber customers, helping to increase its consumer broadband revenue by 2.1% and its average revenue per consumer data user by 7.3%. In total, Consolidated has approximately 500,000 total consumer customers.
Based on this performance, Consolidated executives believe the company can return to overall revenue growth in 2023.
However, Consolidated faces the same kinds of supply constraints that have affected other fiber companies, including AT&T.
As a result of the situation, the company has increased its capital spending for 2021 to a high of $ 460 million, from a previous high of $ 420 million. Company officials said the extra money would help them secure more Wi-Fi 5 products for home Wi-Fi amid a potential shortage of Wi-Fi 6 equipment.
Overall, Consolidated is one of many fiber providers in the United States working to dramatically expand the reach of its fiber network, in part in response to a pandemic that has highlighted the value of connections. Fast internet at home. Moreover, such constructions could soon be overloaded with billions of dollars in additional government funding for such networks.