Internet provider Sparklight, formerly called Cable ONE, is investing millions into its Rio Rancho systems as it seeks to increase its broadband capabilities.
The internet provider, headquartered out of Phoenix, has continually worked to upgrade its network infrastructure in Rio Rancho. Over the past three years, the company has made infrastructure investments worth nearly $14 million for the local market. Its investments are setting the foundation for increased broadband speeds, which currently top out at 1 gigabit for residential customers and as fast as 5 gigabits for business clientele. It plans to eventually upgrade to speeds as fast as 10 gigabits, opening up possibilities for technologies such as virtual reality, according to the company.
Sparklight general manager Jane Shanley said there has been a significant "increase in spend" due to the Covid-19 pandemic. Businesses, she said, have needed what would have normally constituted two years worth of use capabilities in just six months — representing a dramatic increase in demand. Shanley said she doesn't expect that demand to drop as times moves on, and the pandemic subsides.
According to the company's most recent annual report filed with the U.S. Securities and Exchange Commission (SEC), growth in the residential data product line "accelerated during 2020, in part as a result of the COVID-19 pandemic."
But the pandemic, alongside the company's "associated responses," also led to "suppressed sales growth from small business customers while at the same time the pandemic presented additional subscriber acquisition and upgrade opportunities primarily for mid-market and enterprise businesses in need of faster and more reliable data and voice services," according to the SEC filing.
Shanley said the company must consider two types of demand — one which sees customers pushing more data through the network and another which has to do with the company's ability to bring more people onto the network. Sparklight is also keeping an eye on the expansion of the Internet of Things, which refers to electronic devices that are connected to the internet.
"We're one of those organizations that didn’t lose business during the pandemic, obviously," Shanley said. "It's been a pretty busy time for us, but in terms of what we're spending and why we’re spending it, we’re just looking to upgrade the speed constantly."
Sparklight, which announced the change of its brand name from Cable ONE in 2019, reported more than $341 million in revenue last quarter, a $20 million increase over the same time period last year. It reported $1.3 billion in revenue in 2020, an increase of $157 million compared to 2019.
