Lumen Sees Potential in Fiber Upgrades for Rural Markets

Alayaran.com - Lumen Technologies, a prominent service provider, is eyeing a significant upgrade of its customer base from copper to fiber, particularly in rural markets. With an existing copper customer base of 18 million, Lumen's CEO, Stansbury, highlighted that there exists a substantial opportunity within this segment. "Of those 18 million, there's a sizable piece that's rural," Stansbury noted during a recent earnings call. He further mentioned that approximately 8 million homes have potential for fiber upgrades, with the current fiber penetration standing at 4 million.

The allure of these markets lies in their potential for attractive returns, as fiber deployment continues to be a lucrative investment for service providers. "The markets where fiber is being built are attractive," Stansbury explained, underscoring Lumen's strategic focus on expanding its fiber network.

Fiber Broadband Growth Continues

In the third quarter, Lumen reported continued growth in its fiber broadband sector. The company's Quantum Fiber service, which boasts a penetration rate of about 26%, has seen an increase in both subscribers and enabled locations. "We added 131,000 fiber-enabled locations, bringing our total to over four million," Stansbury stated, indicating a strong push towards their annual target of 500,000 new builds.

Notably, Lumen achieved its best quarter for Quantum Fiber subscriber additions to date, with 43,000 new customers joining, pushing the total over the one million mark. Despite the growth in subscribers, the average revenue per user (ARPU) for fiber remained stable at $62, showing a slight increase year-over-year.

Strategic Focus on Fiber Expansion

Lumen's strategy underscores a broader industry trend towards fiber-optic networks, driven by the need for higher bandwidth and reliability. The company's efforts align with its goal to modernize and expand its network infrastructure to meet increasing consumer and business demands for faster internet services.

For more insights into broadband developments and related industry news, readers can visit Alayaran.com's Broadband Topic Center. For those interested in the technological aspects and suppliers in high-speed transmission systems, the Lightwave Buyer’s Guide offers comprehensive details. Additionally, to keep updated on fiber network deployments and other service provider news, subscribers can sign up for Lightwave’s Service Providers and Datacom/Data Center newsletters.