Zayo Advances in Indianapolis, TW Telecom in Colorado

July 25th, 2009 by · Leave a Comment

There was so much happening last week with earnings reports and other announcements and many other things going on offline, and when that happens some news just slips through the cracks - at least temporarily.  Two such stories that involve companies covered frequently on this website did just that this week.  TW Telecom and Zayo have something in common, or so I seem to feel.  Through this economic firestorm over the last year, both have managed to come through it with their gameplans almost entirely unscathed, and thus if they stopped advancing it would perhaps catch more attention than the steady expansions they announced this week.

Zayo is making a substantial move in Indianpolis, announcing plans to hook up some 80 commercial buildings and towers in the city. Fiber to the tower is something Zayo has been doing a lot of, but mostly in Memphis and Philadelphia.  Indianapolis is a natural market for Zayo to take to a new level.  The main assets there came from Indiana Fiberworks, although there may have been some that came with the CityNet Wholesale acquisition.  The PR suggests that backhaul for 3G is the driver behind the expansion, but the actual contract wasn't specified.  It's probably T-Mobile, who they built much of those backhaul networks for in Philly and Memphis, but who knows...

TW Telecom (NASDAQ:TWTC, news, filings) on the other hand, added a 6,200 square foot colocation facility in Denver, quadrupling the space available in the market overall.  Now that's not much compared to the big colo players in the big markets, but their target customers are different and the new space will enable sales where others might be more constrained.  Of course, the datacenter business is as solid as it gets these days, and since TW Telecom has the cash flow to support expansion where demand is high they can take advantage of the opportunity.  They have also lit fiber connecting their Denver and Colorado Springs markets.  The area is not one of their more established markets, but it has been a big focus over the last few years and clearly they are feeling bold right now.  Today, expansion is limited by the willingness to spend capex, and TW Telecom seems to be willing to spend it in Denver to win a bigger piece of the pie.

Categories: Datacenter · Metro fiber

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