HALIFAX – It’s full speed ahead for the roll out of Bell Aliant’s fibre optic network.
In a news release announcing the company’s fourth quarter financial results, Bell Aliant pledged to pass more than 140,000 homes by the end of 2010 with its FibreOP network, which provides customers access to its broadband network delivered through 100% fibre-optic technology connected directly to their home.
"I am thrilled to announce that in 2010 we will more than double our 2009 spending on fibre technology to pass 140,000 homes with fibre to the home by the end of this year," said president and CEO Karen Sheriff, in the release. "With this investment we are accelerating and leveraging our natural assets of aerial footprint and low density geography to invest for the future. We expect to continue to gain efficiencies in our capital program, and this, in combination with the completion of a significant capital project in 2009, will allow us to advance our fibre network this year without increasing our overall capital spending from 2009 levels."
Specific communities slated to receive the fibre to the home service will be announced by mid year, the company said. It launched the service in Fredericton last September.
Operating revenues were down 2.2% to $786 million in the fourth quarter of 2009 when compared to the fourth quarter of 2008, primarily as a result of declines in local and long distance revenues associated with lower network access services (NAS), though offset by increases in Internet and Information Technology (IT) revenues.
Despite the revenue declines, restructuring programs and ongoing cost containment initiatives reduced operating expenses by $18 million from the same quarter in 2008, maintaining EBITDA at $366 million, consistent with the fourth quarter of 2008. For the full year 2009, EBITDA improved $16 million or 1.1% over 2008 performance with operating expenses down $88 million from the year before.
Local service and long distance revenue declined $15 million (4.1%) and $9 million (8.6%), respectively, in the fourth quarter of 2009 compared to the same quarter in 2008. NAS declined 5% from a year earlier, as a result of increased competitive activity and the effects of a slower economy throughout 2009.
Internet revenue grew by $7 million or 7.2% in the fourth quarter of 2009 compared to the same period in 2008, with the number of high-speed Internet customers 7% higher than a year ago and “strong growth” in Bell Aliant TV subscribers in 2009.
IT revenue increased $8 million or 14.2% in the fourth quarter, driven by higher IT equipment sales than the same quarter a year ago. Other revenues declined $8 million or 14.9% from the same quarter in 2008, mainly as a result of lower product sales and rentals.
Looking ahead, the company forecast consolidated operating revenues between $3.05 million and $3.15 million in 2010, down from $3.17 million in 2009. Growth in Internet, TV and IT revenues is expected to mitigate declines in local and long distance arising from continued growth in competitive overlap and substitution by other technologies.
