XFONE Expects 30% Increase in 4Q Fiber Revenues (Updated)

LUBBOCK, TEXAS - XFONE, a competitive provider based in Texas that has been aggressively rolling out fiber to the home, announced that it anticipates FTTP revenue of approximately $3.63 million for the three months ended December 31, 2011 - a 30 percent increase over the fourth quarter of 2010.

The company's total number of FTTP customers grew from 5,777 at the end of 2010 to 7,267 at the end of 2011, with sequential growth of 10 percent in the fourth quarter of 2011.

Guy Nissenson, president and CEO of XFONE, says, "The buildout of our high-margin fiber network has progressed on time, below budget and with consistently solid acceptance rates as we enter new markets. During the past six months, we've established our FTTP network in Littlefield, Burkburnett, Brownfield and Whitharral, Texas, providing customers in those communities access to voice, video and Internet services using high-speed broadband. As we move forward with the fiber rollout, revenues from our FTTP business are contributing a larger percentage to overall revenues, at a higher margin than our legacy business."

XFONE's ongoing fiber buildout, when completed, is expected to reach 19 new communities, with total FTTP passings of approximately 50,000. The company is funding the expansion of the fiber network using approximately $100 million in federal stimulus funding. In a separate announcement, XFONE said it had just connected its first fiber customer in one of the 19 new communities - the town of Slaton, Texas.