Lumen Eyes Fiber Upgrade for Its Copper Customer Base
By [Your Name], Alayaran.com
In a strategic move to capitalize on the growing demand for high-speed internet, Lumen Technologies announced plans to potentially upgrade its extensive copper network to fiber optics. Lumen, which currently boasts approximately 18 million copper customers primarily in rural areas, sees a significant opportunity in transitioning these subscribers to more advanced technology.
Maxine Stansbury, speaking on behalf of Lumen, highlighted the potential of the rural market, stating, "Of those 18 million, there's a sizable piece that's rural. However, there are 8 million homes with potential, which is reasonable." The company is already at a midpoint with 4 million homes, with plans to expand further.
The transition to fiber is driven by the attractive market dynamics where fiber deployments are occurring. "The reality is that the markets where fiber is being built are attractive," Stansbury explained. This move positions Lumen as a significant player in the fiber broadband market, potentially making it the largest asset in the industry yet to be consolidated.
Fiber Broadband Growth
During the third quarter, Lumen reported substantial growth in its fiber broadband segment. The company's penetration rate for legacy copper broadband was approximately 9%, while Quantum Fiber, its fiber service, stood at a robust 26%. Despite these figures, the average revenue per user (ARPU) for fiber remained stable at $62, showing a slight increase from the previous year.
Lumen added 131,000 new fiber-enabled locations, increasing its total to over four million by September 30. "We are pacing towards our targeted annual 500,000 build target this year," Stansbury affirmed, indicating a strong push towards expanding their fiber network.
Furthermore, the company's Quantum Fiber subscriber base grew by 43,000, marking the best quarter for fiber net adds to date. This growth brings the total Quantum Fiber subscribers to over one million, underscoring Lumen's successful expansion in the fiber broadband sector.
This strategic pivot to fiber not only enhances Lumen's service offerings but also aligns with broader industry trends towards faster, more reliable internet connectivity, especially in underserved rural markets. As Lumen continues to upgrade its infrastructure, it sets the stage for improved service quality and customer satisfaction, potentially setting a benchmark for others in the telecommunications industry.
For further insights into Lumen's strategic initiatives and financial performance, readers can refer to our comprehensive earnings coverage. Stay updated with the latest in broadband and high-speed transmission technologies by visiting the Broadband Topic Center or subscribing to Lightwave’s Service Providers and Datacom/Data Center newsletters.