CommScope Announces Increase in U.S. Fiber Optic Cable Production to Accelerate Rollout of Broadband to Underserved Communities

Rhea-AI Summary

CommScope (NASDAQ: COMM) announced an expansion of its fiber-optic cable production in the U.S. to enhance broadband access, particularly for underserved areas. The initiative aims to connect 500,000 homes annually through fiber-to-the-home (FTTH) deployments and will create 250 new jobs over the next five years, with 90% requiring no college degree. The company is investing $47 million in capital expenditures to boost domestic manufacturing in alignment with the White House's supply chain initiative. The HeliARC fiber optic cable will also facilitate easier installation and support rural connectivity efforts.

Positive

• Expansion of fiber-optic cable production to connect 500,000 homes annually.
• Creation of 250 jobs, with 90% not requiring college degrees.
• Investment of $47 million in U.S. capital expenditures.
• Introduction of HeliARC fiber optic cable designed for rural areas.

Negative

• None.

Expanded capacity adds manufacturing jobs and increases American supply chain production

HICKORY, N.C.--(BUSINESS WIRE)-- CommScope^® (NASDAQ: COMM), a global leader in network connectivity solutions, announced today that it is expanding fiber-optic cable production to accelerate the rollout of broadband across the U.S., connecting more communities and underserved areas.

CommScope’s expansion of U.S. fiber-optic cable production will:

• Increase fiber-optic cable output, hastening the deployment of broadband to underserved communities; The HeliARC™ lines are expected to support 500,000 homes per year in fiber-to-the-home (FTTH) deployments.
• Increase employment opportunities with the addition of at least 250 jobs over the next five years, 90% of which will not require a college degree.
• Bolster supply chain production in the United States in support of the White House’s initiative to have the supply chain for America begin in America.
• Introduce a new HeliARC fiber optic cable, specifically designed for the needs of rural deployments.
• Invest $47 million CapEx in the U.S. toward expanding fiber optic cable production focused on rural applications.

“We are in the business of connectivity. We strive to provide superior solutions to our customers who, in turn, provide connectivity for businesses, individuals and communities. This increase in fiber-optic cable production is a great step forward for our ‘Broadband for Everyone’ program, furthering our commitment to serve the fiber optic cable market,” stated Chuck Treadway, President & CEO, CommScope. “We will produce more cost-effective and easier-to-deploy fiber-optic cable, add new jobs and simultaneously strengthen the supply chain in America. This is a trifecta we are thrilled to announce, and we are particularly pleased to share this news today in the company of Secretary Raimondo and Governor Cooper.”

“Thanks to President Biden’s Bipartisan Infrastructure Law, we’re going to connect everyone in America to affordable, reliable high-speed Internet. But our Internet for All initiative is not just a connectivity program – it's an opportunity to create jobs and expand domestic manufacturing,” said U.S. Secretary of Commerce Gina Raimondo. “As we’ve seen today, we can produce the materials needed for broadband deployment right here in America. With today’s announcement of a $47 million investment, CommScope is demonstrating its commitment to our once-in-a-generation infrastructure moment.”

"From telemedicine and remote work to education and small businesses, access to high-speed internet is essential in today’s digital age,” said North Carolina Governor Roy Cooper. “CommScope’s expansion of fiber-optic cable production will help even more families get online in North Carolina and across the country.”

Broadband access allows households to engage in necessary activities such as telehealth appointments, education as well as employment opportunities. It also provides access to the digital economy, allowing everyone to engage in everyday undertakings such as paying bills online or ordering groceries. Currently, one out of five U.S. households lack access to reliable broadband.

HeliARC is a smaller and lighter-weight cable allowing for faster installation and lower cost of deployment. Its reduced size and weight also lowers shipping costs, permitting more product to move in one shipment, thereby making it a more sustainable and environmentally friendly product.

Currently, CommScope has two fiber-optic cable production facilities in North Carolina, one in Catawba and the other in Claremont. The increase in production in part results from an expansion of manufacturing at these facilities, where they will add lines of production for HeliARC cable line. This expansion in manufacturing increases American supply chain production resulting in more “Made in America” products.

The announcement was made today at an event with the Honorable Secretary Gina Raimondo, U.S. Department of Commerce, Assistant Secretary Alan Davidson, U.S. Department of Commerce, and the Honorable Governor Roy Cooper of North Carolina. Also were esteemed members of the community. During the event, CommScope showcased its current facilities in Catawba and Claremont.

CommScope and the CommScope logo are registered trademarks of CommScope and/or its affiliates in the U.S. and other countries. A list of CommScope trademarks is available at https://www.commscope.com/trademarks. All other product names, trademarks and registered trademarks are property of their respective owners.

About CommScope:

CommScope (NASDAQ: COMM) is pushing the boundaries of technology to create the world’s most advanced wired and wireless networks. Our global team of employees, innovators and technologists empower customers to anticipate what’s next and invent what’s possible. Discover more at www.commscope.com.

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This press release includes forward-looking statements that are based on information currently available to management, management’s beliefs, as well as on a number of assumptions concerning future events. Forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, which could cause the actual results to differ materially from those currently expected. In providing forward-looking statements, the company does not intend, and is not undertaking any obligation or duty, to update these statements as a result of new information, future events or otherwise.

Source: CommScope

View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005863/en/

News Media Contact:

Cheryl Przychodni

cheryl.przychodni@commscope.com

Financial Contact:

Michael McCloskey, CommScope

+1-828-431-9874

Source: CommScope

FAQ

What is the significance of CommScope's fiber-optic cable production expansion in March 2023?

CommScope's expansion aims to enhance broadband access for underserved communities, connecting 500,000 homes annually with a $47 million investment.

How many jobs will CommScope create with its new fiber-optic cable facility?

CommScope plans to create 250 new jobs over the next five years.

What is HeliARC, and how does it benefit fiber-optic installations?

HeliARC is a new fiber optic cable designed for easier, cost-effective installation, particularly in rural deployments.

What role does CommScope's investment play in the U.S. supply chain?

The investment supports domestic manufacturing and aligns with the White House initiative to strengthen the U.S. supply chain.

When was the announcement about CommScope's fiber-optic cable expansion made?

The announcement was made on March 29, 2023.