Independents post progress toward broadband

Fourth quarter earnings reports from four different Independent telcos reveal a mixed bag this week as the companies seek new revenue sources to compensate for continued line loss in their traditional voice business.

Many industry observers view bundled broadband services as the best focus for small and large telcos moving forward -- and SureWest Communications seems to be having significant success with that approach. The company saw consolidated revenues increase 2% year-over-year, driven by 13% broadband revenue growth, which offset telecom revenue declines of 15%. The broadband gains did not happen without investment, however. The company, which operates fiber and hybrid fiber coax networks, passed 8800 additional advanced fiber homes in 2009. Also noteworthy was the company's average $8 increase in average revenue per user for triple-play marketable homes. "This was due to a fourth quarter 2009 video and data price increase that reinforced the company's ability to maintain growth while targeting customers who value superior service offerings," the company wrote. Increased demand for higher data speeds, high-definition TV and digital video recorders also helped generate ARPU growth, the company said.