Lumos Networks Announces “Project Ark”, an FTTC-Focused IP Fiber Network Overlay

Business Wire

WAYNESBORO, Va.--(BUSINESS WIRE)--

Lumos Networks Corp. (“Lumos Networks” or “the Company”) (LMOS), a fiber-based service provider of data, voice and IP-based telecommunication services in the Mid-Atlantic region, today announced plans for a significant upgrade to its fiber network planned for completion during 2014. The Company will invest in state of the art fiber optical equipment and build a new MEF certified Carrier Ethernet MPLS/IP fiber overlay network designed primarily to handle Fiber to the Cell site (“FTTC”) traffic within Lumos’ network. Lumos Networks has been actively consulting with its FTTC carrier customers about the development of this parallel network, called “Project Ark”. The flexible MPLS architecture of Project Ark will allow for bandwidth scalability without a major design overhaul or the installation of significant new equipment.

“Over the last two years, Lumos Networks added 460 FTTC sites and we expect to add at least 200 more in 2014, equating to over 800 on-the-air sites by the end of 2014,” said Tim Biltz, President and CEO of Lumos Networks. “In order for us to continue to provide leading quality of service and to have the necessary bandwidth to reach our long-term goal of 1,500 FTTC sites, we architected a separate, robust parallel Carrier Ethernet MPLS/IP fiber network intended exclusively for FTTC traffic. We have named this network ‘Project Ark’ and I consider this to be a major step forward in our goal to transform our network into the most dense and robust Carrier Ethernet network in the Mid-Atlantic region. Fiber bandwidth traffic from select large Enterprise accounts may also be routed onto this new network.”

Project Ark will provide total bandwidth of approximately one terabyte and is designed to handle, at a minimum, FTTC traffic produced by 1,500 sites on Carrier Ethernet, with an average of 1.5 tenants per site and 400 Mbps of throughput at each site. Project Ark, will connect four key markets in the Lumos Networks footprint: Pittsburgh, Pa; Charleston, WVa; Roanoke, Va; and Ashburn, Va. The loop around these four cities is about 850 miles.

Craig Drinkhall, Chief Technology Officer for Lumos Networks, added, “Our FTTC carrier customers have endorsed our plans for Project Ark and we are collaborating with them on expected timing for the routing of their FTTC traffic. Routing all of our FTTC traffic on Project Ark will free up substantial space on our current network to satisfy the quality of service and growing bandwidth requirements for our current Transport, Enterprise and IP Services customers.”

About Lumos Networks

Lumos Networks is a fiber-based service provider in the Mid-Atlantic region serving carrier, business and residential customers over a dense fiber network offering data, voice and IP services. With headquarters in Waynesboro, VA, Lumos Networks serves Virginia, West Virginia and portions of Pennsylvania, Kentucky, Ohio, and Maryland over a fiber network of 7,414 fiber route miles. Detailed information about Lumos Networks is available at www.lumosnetworks.com.

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this news release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words “anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,” “targets,” “projects,” “should,” “may,” “will” and similar words and expressions are intended to identify forward-looking statements. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, include, but are not limited to: rapid development and intense competition in the telecommunications and high speed data transport industry; our ability to offset expected revenue declines in legacy voice and access products related to the recent regulatory actions, wireless substitution, technology changes and other factors; our ability to effectively allocate capital and implement our “edge-out” expansion plans in a timely manner; our ability to complete customer installations in a timely manner; adverse economic conditions; operating and financial restrictions imposed by our senior credit facility; our cash and capital requirements; declining prices for our services; our ability to maintain and enhance our network; the potential to experience a high rate of customer turnover; federal and state regulatory fees, requirements and developments; our reliance on certain suppliers and vendors; and other unforeseen difficulties that may occur. These risks and uncertainties are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed cautionary statements and risk factors included in our SEC filings, including our Annual Reports filed on Forms 10-K and our Quarterly Reports filed on Forms 10-Q.

Contact:
Lumos Networks Corp.
Will Davis, 917-519-6994 (c)
Director of Investor Relations
davisw@lumosnet.com

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