tw telecom Advances in Hawaii, Pacific Northwest

May 17th, 2012 by · Leave a Comment

TW Telecom (NASDAQ:TWTC, news, filings) goes about its business in such an understated way that it’s too easy to miss the interesting bits. This week they had some luck to the west, picking up both a solid enterprise and federal wins.

Yesterday’s contract was a renewal and expansion of their contract with Western Peterbilt, which operates truck dealerships across the Pacific Northwest. tw will be be providing its voice, internet, and IP VPN services to create a multi-state network infrastructure for 17 locations across Washington, Oregon, California, and Alaska.

And a couple days before and a few thousand miles to the south and west, tw won a nice federal deal out in Hawaii. The GSA has awarded them one of those multi-year indefinite-delivery-indefinite-quantity contracts to supply various government agencies with VoIP, several flavors of Business Ethernet, and Private Network Transport. Agencies can either go through the GSA or direct through tw, and the contract runs through December of 2014 with provisions for two one-year extensions.

tw telecom’s growth rate is set to pick up from here, as its faster-growing data and internet products now make up more than half of the company’s service revenues.  Their strategy has featured adding more depth to their existing footprint in a big way, averaging more than 500 additional on-net buildings each quarter while only slowly adding additional metro fiber miles.

They’ve been quiet on the M&A front for a long, long time, but perhaps Zayo’s purchase of AboveNet will have woken them up in time for when XO probably hits the market later this year.  (Icahn may not actually sell right away, but I think it’s almost certain he will test the waters.)


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Categories: Metro fiber

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