PRESS RELEASE


 

Media Contact
Will Davis
Senior Vice President of Marketing and Investor Relations
Chief of Staff
(917) 519-6994
davisw@lumosnet.com

 

For immediate release

Wednesday, August 3, 2016
Refreshed Analysis Indicates 67% Increase in Market Opportunity from Lumos Networks Expansion Markets

WAYNESBORO, Va.--(BUSINESS WIRE)-- Lumos Networks Corp. (“Lumos Networks”, “Lumos” or the “Company”) (Nasdaq: LMOS), a leading fiber-based service provider in the Mid-Atlantic region, today announced the results of its recently completed refreshed market analysis.

The study, performed in conjunction with a leading 3rd party fiber research firm, indicates that the company’s 822 mile network expansion into the metro markets of Richmond and Norfolk/Hampton Roads, Virginia, increases the Company’s Enterprise opportunity, within one mile of the Company’s fiber network by 67%, or $221 million, as compared to its Core Markets.

Following the completion of its most recent market analysis completed in November of 2014, in conjunction with the same 3rd party firm, the Company had previously estimated that its expansion markets would increase its total addressable market by $135 million, or 60%.

Current Market Analysis (July ’16)
Enterprise Addressable Mkt
Core Markets $329m
Expansion Markets $221m (67% increase vs Core)
Total Market $550m (total up 52%)

Prior Market Analysis (Nov ’14)
  Enterprise Addressable Mkt
Core Markets $227m
Expansion Markets $135m (60% increase vs Core)
Total Market $362m

“The results of our refreshed market analysis give us increased confidence in the significant Enterprise revenue upside from our recently completed expansion markets of Richmond and Norfolk/Hampton Roads,” said Timothy G. Biltz, CEO of Lumos Networks. “The significant increase in our Addressable Market, in both our Expansion and Core markets, highlights the strategic placement of the approximately 1,400 fiber route miles we have built over that period.”

Mr. Biltz continued, “Additionally, the study confirms that 50-55% of our Addressable Market is tied to 'Large Locals', which are the key focus verticals in our footprint. Large Locals, which are customers where the preponderance of their locations are in our footprint, and primarily include healthcare, finance, government, education, media, professional services and manufacturing enterprises, represent the foundation for our direct Enterprise efforts.”

About Lumos Networks

Lumos Networks is a leading fiber-based service provider in the Mid-Atlantic region serving Carrier, Enterprise and Data Center customers, offering end-to-end connectivity in 44 markets in Virginia, West Virginia, North Carolina, Pennsylvania, Maryland, Ohio, Kentucky, South Carolina, and Georgia. With a fiber network of more than 20,000 fiber route miles and over 1 million total fiber strand miles, Lumos Networks connects over 4,500 unique Fiber to the Cell sites, almost 1,700 total FTTC connections, over 4,500 on-net buildings and more than 9,000 total on-net locations. The Company also connects 44 total data centers, including three data centers acquired from DC74 (now named Lumos Data Centers), two acquired from Clarity Communications and seven company owned co-location facilities. In 2016, Lumos Networks generated over $123 million in Data revenue over our fiber network. Detailed information about Lumos Networks is available at www.lumosnetworks.com.

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Lumos Networks provides fiber internet, voice, and IP connectivity over a dense fiber-based network serving enterprise and carrier customers in areas around and including Roanoake, VA, Richmond, VA, Daleville, VA, Waynesboro, VA, Hampton Roads, VA, Virginia Beach, VA, Lynchburg, VA, Charleston, WV, Huntington, WV, Beckley, WV, Parkersburg, WV, Clarksburg, WV, Morgantown, WV, Wheeling, WV, Pittsburgh, PA, Harrisburg, PA, Altoona, PA, Hagerstown, MD, and Washington, D.C.