SureWest Video RGUs down 900 in 2Q09

Thursday, August 6th, 2009
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ROSEVILLE, Calif. — Leading independent communications holding company SureWest Communications (Nasdaq: SURW) today announced operating results for the second quarter ended June 30, 2009.

Steve Oldham, SureWest’s president and chief executive officer, said, “In recent years, SureWest has committed significant new capital to expand our state-of-the-art fiber network with the long-term goal of growing our subscriber base. Having completed our 2009 network build, we maintain our ability to grow through a number of avenues; most impressive of which is the planned integration of Microsoft Mediaroom into our Sacramento IPTV product this December. We are convinced that Mediaroom will further increase our customer satisfaction, which already stands at the highest levels delivered in our markets today. Mediaroom augments our offensive strategy of growing penetration on our existing network and it provides a significant defensive tool in reducing churn. The technology also allows us to offer a superior video service as part of a triple-play to an additional 25,000 homes in our ILEC territory.”

At June 30, 2009, the Broadband segment experienced a 3% annual increase in the number of residential subscribers compared to the prior year. Data and video RGUs both increased 4% compared to 2008 which was reflective of our ability to offer subscribers high-speed data, HDTV, HD DVR and other enhanced services. In addition, Broadband operating revenues increased as a result of higher pricing for video and data services in 2009 as well as the continued expansion of the broadband network and growth in the demand for digital video, voice and data offered as a bundled triple-play package.

Broadband Residential – Video:

                                 6/30/2009  6/30/2008     Chg  Chg %   3/31/2009     Chg  Chg %
                                 ---------  ---------  ------  -----   ---------  ------  -----
Marketable Homes - Fiber & HFC     239,800    217,700  22,100    10%     236,500   3,300     1%
RGUs - Fiber & HFC                  56,900     54,500   2,400     4%      57,600   (700)    -1%
RGUs - Copper                        2,200      2,600   (400)   -15%       2,400   (200)    -8%
Penetration - Fiber & HFC            23.7%      25.0%   -1.3%    -5%       24.4%   -0.6%    -3%

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