Telecom Ramblings

Defying the liquidity crisis in the markets, ITC^Deltacom (ITCD) announced today it is spending $20M to upgrade its network in the southeastern US.  More Infinera DTNs will be installed, and they will even build out metro networks in several markets over the next few quarters.  As I recall, they have resold metro dark fiber from the Progress (now Level 3) footprint in several markets, I wonder if they are lighting some of those assets for themselves now.

Regardless, it is interesting to see further signs of life from this company, which has struggled to show substantial growth in either revenue or ebitda for years. It’s even more interesting that the company has only $60M or so in cash on its balance sheet, so this represents a third of the company’s available cash.   Since the company has at best had neutral cashflow lately and surely doesn’t have any better access to the markets than the rest of the sector, one has to wonder what’s new in Huntsville.