tw telecom Wins GSA Contract, Targets Cloud

January 17th, 2012 by · 5 Comments

More organic TW Telecom (NASDAQ:TWTC, news, filings) moves by tw telecom to start 2012:

Last week, tw telecom picked up some more federal business of its own. The GSA has awarded them one of those indefinite delivery/indefinite quantity contracts to provide federal agencies with voice, data, and internet solutions in ‘Region 9’ which in non-federal-speak is California. No dollar amounts were mentioned here, but the contract covers voip, Ethernet WAN, Extended Native LAN, and Private Network Transport services, and extends through 2014 with two one year renewal options.  California has been hot for them lately, as they had that 46-location deal with Clinica Sierra Vista before Christmas.

Today, tw telecom moved deeper into Equinix (NASDAQ:EQIX, news, filings) territory. They have expanded their presence to 21 of the colo giant’s IBXs nationally, with plans to add additional facilities as well. They’re aiming at what every fiber operator is aiming at these days:  hooking up all the clouds that are springing up, both with enterprises and with each other. tw telecom’s unparalleled national metro depth puts them in an advantageous position for if/when this market really takes off.

Sooner or later, the company seems likely to find the perfect M&A it has been so patiently waiting for, perhaps in the third quarter when a certain hard-nosed billionaire finally decides to jettison his telecommunications assets.


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Categories: Government Regulations · Metro fiber

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5 Comments So Far

  • Anonymous says:

    with lack of long haul network do you think tw is positioned for cloud ? I would think connecting all the datacenters with an ethernet cloud woudl require a LH componet for seemless data transmission. I know you can lease LH which they have doen but is it a competitive disadvantage that tw NEEDS to address.Meaning bandwidth grows how do they scale there core network to support.

    • Rob Powell says:

      We have not yet reached the point where LH fiber is that big of a need, as you *can* scale the core via other people’s assets right now. But that is starting to change, and I do think that one of tw’s strategic needs in the long term is a national longhaul fiber. It’s part of the reason that XO is such a good fit for them once Icahn gets on with it.

  • Anonymous says:

    tw has great regional long haul assets that have been in place for years. Considering that most companies utilize in-region datacenters for their colo requirements, this positions tw well since there is often times a glut of metro options vs. LH requirements. Leveraging their interconnects and eNNIs from a LH transport side seems like the logical mode of operation.

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