TDS Rides Video and Fiber Broadband Growth, Cites Expansion Evaluation Plans

TDS revealed 3Q 2020 results and both video and broadband -- specifically fiber broadband -- are leading the charge. Customers are adopting higher speeds and it’s driving revenue growth. About 12% of TDS broadband subscribers now take gigabit service. And over 38% take 100 Mbps or faster service. These higher speeds have pushed broadband ARPU up 5%. TDS now reaches 280K locations with fiber broadband, both in its incumbent territory and in its expansion territories. That translates to 34% coverage of its footprint with FTTP. Its current fiber construction plan will take total serviceable locations to 320K. TDS sees fiber penetration of between 30 – 40% in their fiber markets. TDS total broadband serviceable addresses were 823,000 at the end of 3Q 2020, with 64% served by copper DSL broadband. TDS DSL capabilities for those locations is roughly 1/3 each for the categories of 10 Mbps or less, 10 Mbps to 24 Mbps, and 25 Mbps to 100 Mbps. The company’s wireline business unit generated $173 million in revenue in 3Q 2020 (including its cable business), with an adjusted EBIDTA of $53 million. Expansion is paying off for TDS. Its current fiber broadband expansion plan has contributed an additional $15 million in revenue so far in 2020 with $20 million expected by year end.