Shenandoah to ditch ‘converged’ biz unit, refocus on wireless

Shares of Shenandoah Telecommunications Co. rose slightly after the company said it plans to sell its Converged Services business unit – which offers video, Internet and voice services to off-campus student housing and other locations – in a bid to refresh its focus on the wireless industry. The company is a CDMA affiliate of Sprint Nextel Corp.
“The company is pursuing the potential disposition of the business in connection with its long-term strategic plan to focus on growing its wireless business as a Sprint PCS Affiliate of Sprint Nextel and expanding its triple play services, including high-definition TV, video on demand, and high-speed Internet and voice,” Shenandoah said in a short press release.
The company’s stock was up around 2% on the news, to around $19.50 per share.
Shenandoah’s subsidiaries provide local and long distance telephone, Internet and data services, cable television, wireless voice and data services, alarm monitoring and telecommunications equipment across the Mid-Atlantic and Southeastern United States.
In the second quarter Shenandoah reported 6,292 net wireless subscriber additions, bringing the company’s total retail wireless customer base to 200,397 subscribers. During the quarter, the company posted operating income of $12.4 million, up 27% from the same quarter a year ago, and total revenues of $39.1 million, up 12% from the year-ago quarter.