Yesterday, Zayo made a down payment on its recent plans to build out 100G in earnest this year. The upstart-turned-fiber-giant says it has already deployed the technology on one of the busiest routes in the world, i.e. along the East Coast between their New York City, Philadelphia, and Washington DC markets. And it’s not just for their own capacity needs, they’re offering the 100G wavelengths themselves to customers.
Each of those metro areas is now amongst Zayo’s deepest markets following last year’s M&A activity, whereas just a year ago Zayo’s northeastern presence was primarily Philadelphia. AboveNet gave them a powerful presence in both New York and Washington DC, while Fibergate boosted the latter even further. But the company’s intercity assets on this route are a bit less fiber-rich than elsewhere in the country, so deploying 100G here first makes sense on many levels.
As one might expect, the deployment is initially focused on a few key nodes – in this case at 111 8th in NYC, 21715 Filigree and 2100 M St NW in DC/Ashburn, and 401 North Broad in Philly. It seems likely that the next move will be to build out 100G to Atlanta and Chicago. We’ll surely be hearing about such expansions all year from across the industry, given how many network operators have lately announced 100G upgrade plans in the past six months (XO and CenturyLink for example).
Zayo has been quiet on the M&A front for a whole month now since acquiring Litecast’s Baltimore footprint, and I doubt it will remain so. Whatever they do next, I think there’s a high probability it will involve Miami in some form – it’s just the next logical hole to fill.
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