Segra

About Lumos

Representing a successful combination of Lumos Networks and Spirit Communications, the company has a substantial fiber network spanning approximately 23,000 miles that connects more than 9,000 on-net locations throughout nine Mid-Atlantic and Southeastern states. Lumos provides Ethernet, MPLS, dark fiber, advanced data center services, IP and managed services, voice and cloud solutions, all backed by its industry-leading service and reliability. Customers include carriers, enterprises, governments, healthcare organizations, defense, education and small businesses.

Market trends and drivers

The demand for fiber connectivity is growing, driven by secular trends associated with fundamental shifts in both consumer and enterprise behaviors. There has been explosive growth in the proliferation of bandwidth intensive applications (e.g., cloud computing, remote data storage, over the top video streaming, social networking, etc.). Enterprises continue to migrate away from legacy networks towards reliable, high bandwidth fiber-centric networks in order to connect to discrete locations, data centers, and key locations within their organizations. Wireless carriers depend on fiber infrastructure providers to connect to macro cellular towers and deploy small cell sites to meet the growing mobile data usage of their customers. Fiber infrastructure providers such as Lumos are poised to benefit from these secular trends.

Investment potential

The investment potential for Lumos is to continue investing in and growing the Company’s fiber business both organically and inorganically to capitalize on attractive market trends. Value creation levers include ramping up the sales team to accelerate growth using superior flexibility and service, enhancing the product portfolio to drive additional spend from customers, and expanding the network through an attractive pipeline of acquisition opportunities.