HALIFAX – In its 2007 guidance issued this week, Bell Aliant said it plans to accelerate its fibre to the node rollout.
Bell Aliant Regional Communications Income Fund ended 2006 with cash reserves of approximately $139 million, of which $35 to 45 million will be used to accelerate its investment in FTTN technology, to improve Internet speeds and enable more customers to access Bell Aliant’s IPTV product, which is still in its infancy.
“With our performance in 2006, we have the resources to accelerate our investment in FTTN which will position us to continue our strong growth in Internet and IPTV services," said Stephen Wetmore, president and CEO. "As well, we are continuing to move ahead with consolidating the regional telecom business in our territory which will help us achieve growth and provide new products and services to customers.”
The company recently stated its intentions to acquire Amtelecom Income Fund and the cable and telephone company it owns.
Bell Aliant has provided financial guidance for 2007 which pegs revenue at $3.33 billion to $3.4 billion, distributable cash at $690 million to $710 million and increased capital intensity up to 16.5%.
The sale of the assets of Aliant Directory Services will reduce consolidated revenues in 2007 from pro forma levels achieved in 2006, said the company. "Bell Aliant expects competition in its local access market to increase, with continued declines in Network Access Services (NAS) in 2007. Growth in Internet and Information Technology revenues, as well as revenue increases from the acquisition of Amtelecom are projected to offset the declines, with overall revenue projected to be between $3.33 billion and $3.40 billion in 2007," says the release.
The acceleration of the FTTN program will be financed from ending cash reserves from 2006. The $35 to 45 million spend in 2007 will dramatically increase the number of homes passed with TV capability to approximately 200,000 by the end of 2007
