Following quickly on yesterday’s European expansion, CENX has drawn another network operator into its carrier Ethernet Exchange. Today XO Holdings (news, filings) announced it has now connected to the community, bringing its extensive Ethernet footprint to the table. XO has quite a bit of metro fiber and more than three thousand on-net buildings, but it also has a substantial Ethernet over copper footprint.
I had wondered why XO wasn’t already part of these efforts. They have an extensive off-net footprint and low margins, and they have been churning off legacy revenue while driving IP and data services growth to offset. Expanding the range of locations to which they can provide service seems like a no-brainer, and they could definitely use another way to bypass those costly special access lines too. I wonder if like Level 3 they will join Equinix’s exchange as well.
Looks like the parade has begun, and we will be seeing more such announcements as the network effect takes hold.
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