glbc offered up an interesting press release this morning. TTX Company will be using their EtherSphere, IP VPN, and Dedicated Internet Access services to support operations across seven locations as well as backup services for their data center, displacing its previous provider. TTX provides railcars and freight car management services in North America, which is not the kind of company one thinks of as needing bandwidth and high tech communications systems. But I guess keeping track of 200,000 flatcars, boxcars, and gondolas in the modern age takes a modern IT infrastructure these days.
For Global Crossing this is another purely North American win, i.e. one that does not depend as much on the international backbone or on the deeper regional networks they operate in the UK and South America. Greater traction in the US market should help their margins over time, assuming of course that they are winning deals like this at decent margins. It still seems to me as if Global Crossing would benefit from consolidation in the sector that married its high revenues with metro assets that would generate higher margins, but at the moment that M&A chatter has seemed to ebb. But it’s August – everything ebbs in the second half of August, who knows what Autumn will bring.
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