Alongside their earnings report, TW Telecom (NASDAQ:TWTC, news, filings) announced the expansion of their IP VPN to 64 countries around the world. The company has traditionally focused on those with a regional presence, but as the world becomes interconnected more and more of their potential customers have needs that cross international boundaries. This new effort will help them serve those of their current customers with international offices better. Since TW Telecom doesn't have much in the way of international facilities, I wonder who they are partnering with for this.
The announcement caught my eye because one rarely sees TW Telecom talk much about anything beyond the USA. They have always been a highly focused company, one that eschews talk of grand visions in favor of steady progress and internal development. That has been especially true since the Xspedius acquisition and the integration of the network at all levels. To hear the company now looking overseas, even simply in terms of serving its US customer base better, is something of a change in the weather.
If TW Telecom is shifting from an introspective stance to an expansionist one, I say it's about time. They have put together a platform and business model that works, that generates both profits and enough cash flow to fund its own organic expansion. But that platform would work well for inorganic expansion too, and while I have always seen them taking out XO Holdings (news, filings) someday, I have generally dismissed the idea of them merging with someone with an international corporate market presence like glbc. Perhaps I should re-evaluate that position...
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