Uniti Signs Long-Haul Dark Fiber Agreement with Global Internet Provider

Rhea-AI Summary

Uniti Group Inc. (Nasdaq: UNIT) has signed a significant long-term contract with a major global internet provider, providing long-haul dark fiber connectivity across 3,100 route miles in 12 U.S. cities. The contract, which includes key routes such as Houston to Jacksonville and Indianapolis to Nashville, encompasses over 10,600 fiber strand miles, making it one of Uniti's largest ever. This partnership is set to enhance Uniti's infrastructure capabilities, enabling scalability and improved bandwidth services, including 100G and 400G offerings. The company anticipates delivering these routes throughout 2023 and 2024.

Positive

• Secured a long-term contract with a major internet provider, enhancing revenue stability.
• Contract encompasses over 10,600 fiber strand miles, indicating strong business growth potential.
• New In-Line Amplifier shelters will allow for additional leasing opportunities and quicker product deployment.

Negative

• None.

LITTLE ROCK, Ark., Jan. 26, 2023 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that it has signed a long-term contract with a large global internet provider, offering long-haul dark fiber connectivity to premier data centers located in 12 cities within the Central and Southeastern United States. The routes include El Paso, TX to San Antonio, TX, Indianapolis, IN to Nashville, TN, Nashville, TN to Atlanta, GA, Dallas, TX to Beaumont, TX, Houston, TX to Jacksonville, FL, Tallahassee, FL to Tampa, FL, and Miami, FL to Tampa, FL. The agreement provides scalable and secure transport over a combined 3,100 fiber route miles, connecting several Internet traffic aggregation points and key infrastructure hubs for Uniti’s customer.

The Houston, TX to Jacksonville, FL route will require Uniti to build ten (10) new In-Line Amplifier (ILA) shelters where its customer will lease space and power to regenerate their optical signal. These locations will not only allow Uniti to lease additional space and power to other customers, but they will also allow Uniti to regenerate its own optical signal as it deploys its Private Wave Channel (PWC) product along this route in the near future.

“Today’s announcement represents one of the largest customer contracts, by total contract value, in Uniti’s history, encompassing over 10,600 fiber strand miles,” said Greg Ortyl, President of Wholesale and Strategic Accounts. “This existing customer continues to demonstrate confidence in Uniti’s ability to deliver unique, end-to-end infrastructure solutions that meet their increasing bandwidth demands. Furthermore, the new ILA shelters position us for incremental space and power lease-up and quicker deployment intervals of our PWC product when we commence the lighting of Houston to Jacksonville, allowing Uniti to offer 100G, 400G and spectrum services along this route.”

This recent agreement further reflects Uniti’s continued commitment and success of driving long-term recurring revenue lease-up with built-in escalators on its national fiber network of 134,000 route miles. Uniti expects to deliver these routes throughout 2023 and 2024.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure and is a leading provider of fiber and other wireless solutions for the communications industry. As of September 30, 2022, Uniti owns approximately 134,000 fiber route miles, 8.0 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

SALES CONTACTS:

Ron Mudry, 727-421-0388
Senior Vice President, Chief Revenue Officer
ron.mudry@uniti.com

Greg Ortyl, 314-749-2478
President, Wholesale & Strategic Accounts
greg.ortyl@uniti.com

INVESTOR and MEDIA CONTACTS:

Paul Bullington, 251-662-1512
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com

Bill DiTullio, 501-850-0872
Vice President, Finance and Investor Relations
bill.ditullio@uniti.com

FAQ

What is the significance of Uniti's recent long-term contract?

The contract represents one of Uniti's largest, enhancing its revenue and service capabilities.

How many cities are covered under Uniti's new contract?

The contract covers 12 cities within the Central and Southeastern United States.

What services will Uniti provide under the new contract?

Uniti will provide long-haul dark fiber connectivity and scalable bandwidth services, including 100G and 400G.

When does Uniti expect to deliver the new routes?

Uniti expects to deliver the routes throughout 2023 and 2024.

How does the new contract with Uniti impact its financial stability?

The contract strengthens Uniti's long-term recurring revenue streams, offering greater financial stability.