SureWest Video RGUs up 100 in 3Q09

ROSEVILLE, Calif. — SureWest Communications (Nasdaq: SURW) today announced operating results for the third quarter ended September 30, 2009.

Steve Oldham, SureWest’s president and chief executive officer, said, “Consistent with our strategy to aggressively grow our Broadband segment, we are preparing to launch our highly-anticipated enhanced video product powered by Microsoft Mediaroom in our Sacramento market this December.”

Broadband Residential

Broadband Residential revenues increased 12% year-over-year to $29.4 million due to 10% growth in average revenue per user (ARPU) and a 6% increase in revenue generating units (RGUs). Data, video and voice RGUs all showed positive growth rates year-over-year and sequentially.

ARPU for triple-play marketable homes, consisting of the company’s fiber-to-the-home (FTTH) and hybrid fiber coaxial (HFC) networks, increased 6% year-over-year to $112 from $106 as customer demand for higher data speeds, HDTV and DVR continued to increase. ARPU was also positively impacted by a first quarter 2009 video price increase.

OPERATING METRICS – Video:

                                9/30/2009  9/30/2008     Chg  Chg %  6/30/2009     Chg  Chg %
                                ---------  ---------  ------  -----  ---------  ------  -----
Marketable Homes - Fiber & HFC    240,000    221,700  18,300     8%    239,800     200     0%
RGUs - Fiber & HFC                 57,000     55,900   1,100     2%     56,900     100     0%
RGUs - Copper                       2,200      2,600   (400)   -15%      2,200       0     0%
Penetration - Fiber & HFC           23.8%      25.2%   -1.5%    -6%      23.7%    0.0%     0%

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