Glo Fiber Launches Lightning Fast Fiber Optic Internet in Rockingham County, VA

Rhea-AI Summary

Shenandoah Telecommunications Company (SHEN) announced the availability of 100% fiber optic broadband service in several neighborhoods in Rockingham County, with construction expected to be complete by mid-2024. The service will provide super-fast, symmetrical upload and download speeds of up to 5 gigabits per second (Gbps) to over 8,000 homes and businesses. Glo Fiber also offers TV streaming and phone services, as well as Wall-to-Wall WiFi service. The company prides itself on its fiber-to-the-home technology, symmetrical speeds, easy pricing, and prompt local customer service.

Positive

• Shentel is expanding its Glo Fiber broadband service to several neighborhoods in Rockingham County, Virginia, with plans to complete construction by mid-2024
• The service will offer high-speed, symmetrical upload and download speeds of up to 5 Gbps to over 8,000 homes and businesses
• Glo Fiber also provides TV streaming and phone services, as well as Wall-to-Wall WiFi service
• The company emphasizes its fiber-to-the-home technology, symmetrical speeds, easy pricing, and prompt local customer service

Negative

• None.

Insights

Telecommunications Industry Analyst

The expansion of Glo Fiber's 100% fiber optic broadband service into new neighborhoods in Rockingham County represents a strategic move by Shenandoah Telecommunications Company to solidify its presence in the Mid-Atlantic broadband market. This development is notable for its potential to enhance consumer choice and stimulate competition among internet service providers in the region.

Fiber-to-the-home (FTTH) technology is a significant upgrade from traditional copper wire and coaxial cable networks. It offers superior bandwidth and latency performance, which is becoming increasingly important as residential and business customers demand more robust internet services for streaming, gaming and telecommuting. The claim of up to 5 Gbps symmetrical upload and download speeds, if accurate, would place Glo Fiber at the forefront of broadband offerings, potentially increasing customer acquisition and retention rates.

However, the capital expenditure associated with laying down fiber optic infrastructure is substantial. Investors should monitor the company's financials closely to assess the impact of these investments on its balance sheet and cash flow. The long-term benefits, though, could include increased customer lifetime value (CLV) and reduced churn, contributing to a stronger competitive position and potentially higher stock valuations over time.

Market Research Analyst

The announcement by Shentel regarding the expansion of Glo Fiber services could resonate well with stakeholders looking for growth opportunities in underserved markets. The focus on areas like Bridgewater and Elkton suggests a targeted approach to market penetration that leverages the lack of existing high-speed internet infrastructure. By entering these markets, Shentel may be positioning itself to become the de facto internet service provider in the region, which could lead to a first-mover advantage.

Moreover, the emphasis on no long-term contracts and local customer service indicates a customer-centric business model that could differentiate Glo Fiber from competitors. This strategy may lead to positive word-of-mouth and brand loyalty, which are important factors in the success of telecom services. The potential market response to these differentiators should be tracked through customer acquisition metrics and satisfaction surveys to evaluate the effectiveness of these strategies.

Financial Analyst

Shentel's investment in expanding Glo Fiber's FTTH network is a capital-intensive initiative that will likely affect the company's financial performance. The project's completion timeline indicates a mid-term horizon for revenue realization from this investment. Investors should consider the time value of money and the potential for delayed returns when evaluating this expansion's impact on Shentel's financial health.

While the initial capital outlay may strain short-term financials, the potential for a high-margin revenue stream from premium internet services could be substantial. The scalability of fiber networks means that once the infrastructure is in place, additional customer acquisition can be achieved with relatively low incremental costs. This could translate into improved operating margins and earnings growth in the long run. It is crucial for investors to weigh these long-term prospects against the immediate costs and potential risks associated with the expansion, such as construction delays or lower-than-expected customer uptake.

EDINBURG, Va., Jan. 16, 2024 /PRNewswire/ -- Glo Fiber, powered by Shenandoah Telecommunications Company ("Shentel") (Nasdaq: SHEN), announced that future-proof, 100% fiber optic broadband service is now available to several initial neighborhoods in Bridgewater, Broadway, Timberville, Grottoes and Elkton in Rockingham County. Construction is expected to be complete by mid-2024. As construction continues, residents will receive advance notice via mail, and can check availability or sign up for service at www.glofiber.com. Once complete, over 8,000 homes and businesses in the County will have access to Glo Fiber's high-speed internet service.

Glo Fiber provides a direct fiber-to-the-home (FTTH) internet connection with super-fast, symmetrical upload and download speeds of up to 5 gigabits per second (Gbps) with service already available to more than 11,000 homes and businesses in the City of Harrisonburg. The fiber-to-the-home network, coupled with Shentel's 9,300-mile regional fiber network, enables Glo Fiber to deliver high speeds, low latency, and unparalleled reliability. The company has earned a reputation for providing superior local customer service across its markets, including the growing list of communities in Virginia, Maryland, West Virginia, and Pennsylvania.

"Harrisonburg, Virginia was the first market we launched Glo Fiber almost five years ago," said Chris Kyle, Vice President of Industry and Regulatory Affairs at Shentel. "Since then, as our footprint has grown across the Mid-Atlantic, we have continued to work and expand our services to the rest of Rockingham County. We have already seen an overwhelmingly positive response to our service in each of these towns and we are excited to grow that relationship further."

In combination with multi-gigabit internet speeds, Glo TV streaming services and phone services are also available. Wall-to-Wall WiFi service is offered, ensuring a seamless and reliable connection anywhere in your home or business.

As a leading broadband internet provider in the Mid-Atlantic region, Glo Fiber takes great pride in several key differentiators compared to our competitors:

• Fiber-to-the-home technology with exceptional reliability
• Symmetrical download and upload speeds of up to 5 Gbps
• Easy, straight-forward pricing with no long-term contracts
• Prompt local customer service

To learn more about Glo Fiber, please visit www.glofiber.com or 1-833-WANT GLO (1-833-926-8456).

About Glo Fiber
Glo Fiber provides next-generation fiber-to-the-home (FTTH) multi-gigabit broadband internet access, live streaming TV, and digital phone service powered by Shentel (Nasdaq: SHEN). Glo Fiber provides the fastest available residential and small business internet service using XGS-PON, a state-of the-art 10 Gbps symmetrical technology.

About Shenandoah Telecommunications
Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art fiber-optic and cable networks to customers in the Mid-Atlantic United States. The Company's services include: broadband internet, video, and voice; fiber-optic Ethernet, wavelength and leasing; and tower colocation leasing. The Company owns an extensive regional network with over 9,300 route miles of fiber and 220 macro cellular towers. For more information, please visit www.shentel.com.

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SOURCE Shenandoah Telecommunications Company

FAQ

What is the ticker symbol for Shenandoah Telecommunications Company?

The ticker symbol for Shenandoah Telecommunications Company is SHEN.

What are the main neighborhoods in Rockingham County where Glo Fiber's fiber optic broadband service is now available?

The initial neighborhoods where Glo Fiber's service is available include Bridgewater, Broadway, Timberville, Grottoes, and Elkton in Rockingham County.

What are the upload and download speeds offered by Glo Fiber's broadband service?

Glo Fiber's broadband service offers symmetrical upload and download speeds of up to 5 gigabits per second (Gbps).

What additional services are provided by Glo Fiber?

In addition to broadband service, Glo Fiber also offers TV streaming services, phone services, and Wall-to-Wall WiFi service.

What are the key differentiators of Glo Fiber compared to its competitors?

Glo Fiber prides itself on its fiber-to-the-home technology, symmetrical speeds, easy pricing, and prompt local customer service as key differentiators.