Telecommunication

Shenandoah Telecommunications Company (Shentel) announced it has entered into a definitive agreement to acquire 100 percent of the equity interests in Horizon Telecom for $385 million. Consideration will consist of $305 million in cash and $80 million of Shentel common stock. Horizon is a leading commercial fiber provider in Ohio and adjacent states serving national wireless providers, carriers, enterprises, and government, education and healthcare customers.

Here’s everything we have on deck for our November Open Meeting.

Mediacom is making progress in bridging the digital divide across rural Iowa, as it just wrapped up two fiber expansion projects in the towns of Rutland and Williams (IA). Residents can now sign up for broadband plans with up to 2-gigabit download speeds as well as low-cost phone plans. Including these two projects, Mediacom has built fiber in 12 communities in collaboration with the Empower Iowa Rural Broadband Grant Program. The public-private partnership has allowed the operator to bring fiber to over 1,600 rural Iowa locations.

Verizon released its third-quarter earnings and subscriber numbers for 2023. The company ended the quarter with approximately 10.3 million broadband subscribers, an increase of nearly 21 percent year over year. Total broadband net additions were 434,000, representing the fourth consecutive quarter that Verizon reported more than 400,000 broadband net additions. Total broadband net additions included 384,000 fixed wireless net additions, an increase of 42,000 fixed wireless net additions from third-quarter 2022. Verizon now has nearly 2.7 million subscribers on its fixed wireless service.

On October 27, 2023, Federal Communications Commission Chairwoman Rosenworcel will host a listening session in Chicago (IL) to hear from formerly incarcerated people and their loved ones about their experiences using incarcerated people's communications services (IPCS). Participants will explain the critical importance of affordable communications services to incarcerated people, as the FCC works to implement the Martha Wright-Reed Just and Reasonable Communications Act of 2022 (Martha Wright-Reed Act).

Lumos announced its expansion into Greenville County (SC) with nearly a $100 million investment to build out over 775 miles of its 100% fiber network throughout the county.  As a result of this expansion, Lumos will be the first fiber provider to families, households, and businesses throughout portions of the Greenville market, establishing underserved areas of South Carolina for economic success in the future. The expansion will bring fiber-optic internet to thousands of residents and businesses in the greater Greenville area.

Consolidated Communications has agreed to be bought for $3.1 billion, including debt, in a take-private deal that will remove the fiber company from the public markets as it grapples with higher interest rates and rising costs. Searchlight Capital Partners, a private-equity firm that already owns more than 34 percent of Consolidated Communications, and British Columbia Investment Management agreed to pay $4.70 a share for the company. The company has faced various challenges as it works to build up its next-generation fiber network.

Overall satisfaction among wireless internet customers (5G or 4G LTE home internet) averages 748 (on a 1,000-point scale), while overall satisfaction among wired (fiber and cable) and satellite internet customers averages notably lower (712 and 577, respectively) according to the J.D. Power 2023 U.S. Residential Internet Service Provider Satisfaction Study.

Comcast announced that it will roll out DOCSIS 4.0 in Colorado Springs in late October and to parts of Atlanta and Philadelphia before the end of 2023. The company claims this is a world first. “Initially, customers subscribing to X-Class Internet plans will use the newest Xfinity Advanced Gateway with a companion modem to deliver multi-gig symmetrical speeds,” said Comcast. “[In 2024], Comcast expects to introduce its first DOCSIS 4.0-capable gateways.” X-Class is a new brand name for its symmetrical internet offerings. Comcast will offer symmetrical speeds up to 2 Gbps.

The 2023 Broadband Pricing Index (BPI), the fourth installment of USTelecom’s annual report, shows continued good news for broadband consumers, including an 18 percent drop year-over-year in the price of providers’ most popular broadband speed tier (Real BPI-Consumer Choice) and a 6.5 percent drop year-over-year in the price of providers’ fastest speed tier (Real BPI-Speed). Even without accounting for inflation, this pricing trend is in direct contrast to the rising cost of overall goods and services, up nearly 5 percent in a similar one-year period.