SureWest Communications (Nasdaq:SURW) says it will increase the number of homes in Olanthe, KS, it plans to connect with fiber to the home (FTTH) in 2011. The target number will rise 5,000, to 15,500 new FTTH home connections, SureWest says.
While SureWest said that the success of its current FTTH deployment plans played a large role in the decision to expand its FTTH footprint, it also noted it would be able to take further advantage of Federal tax incentives on new investments made in 2011.
SureWest’s projected 2011 capital expenditures will increase from a range of $60-70 million to $65-74 million because of the FTTH increase. Projected capital expenditures for 2012 remain in the $60-70 million range and in the $55-65 million range for 2013, the company added.
“Our goal is to reach 35-40% in total penetration on the new fiber homes, and in just a month we have already achieved 18% sales penetration on the first 2,000,” notes Steve Oldham, SureWest’s president and chief executive officer. “In some areas, we are as high as 33%. The acceleration of homes speaks to the confidence we have in our plan and in our employees to continue delivering a strong return on our investments. These types of growth opportunities are expected to generate long-term sustainable free cash flow and additional value for our shareholders.”
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