Zayo Upgrades in Europe, Gets Quilted

June 27th, 2014 by · 8 Comments

Two announcements hit the wires for Zayo yesterday.  No, not another deal yet, though there’s always tomorrow.  Zayo is working on a longhaul upgrade in Europe and picked up a key research & education contract back in the USA.

In Europe, Zayo has expanded its 100G footprint on its main intercity loop.  That’s the one AboveNet put in place before Zayo bought them, building a foothold on the continent beyond London.  Over the past nine months, Zayo has built out 100G wavelength capability on the London-Amsterdam-Frankfurt-Paris-London loop.  With the Geo and Neo acquisitions dramatically boosting Zayo’s European coverage, those 100G pipes will come in handy.  A few more similar acquisitions this year could easily happen, should the opportunity arise.

Meanwhile, Zayo says it has been selected as an Authorized Quilt Provider for IP services.  That means they’ll be able to sell IP connectivity to the 35 regional networks and 3,000 educational institutions that make up The Quilt around the country.  Zayo’s IP backbone also derives to a large extent from the AboveNet deal, although it’s the deep metro footprint outside of the NFL cities that the rest of Zayo brought to the table that gives it much of its mojo now.  The AQP status doesn’t immediately win them any deals of course, just the ability to bid for them.


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Categories: Internet Backbones · Metro fiber

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8 Comments So Far

  • Frank Coluccio says:

    Rob, just a brief note to recognize the superb reporting you’ve been providing. Thanks.


    • Jeff Storey says:

      Frank, When thinking about future mergers, Level 3 Communications would welcome Zayo with open atms. Our two companies would make an excellent fix.

      • Gzkom says:

        Where do you get that quote? Who would be the -rer/ree?
        Good match with a lot of synergy, but could be some overlap, too.
        It’s not easy to decide, I guess.

      • Frank Coluccio says:

        Shades of LDDS, Worldcom, etc., etc.,etc. …

      • Ben Graham says:

        Jeff Storey, When you mentioned open atms, were you refering to improved flow of Internet bandwidth traffic, which in turn would increase free cash flows. That sounds like the cup over flows from all directions. Yes, indeed I would welcome that with open arms as well.

        The Advanced Traffic Management System (ATMS) field is a primary subfield within the Intelligent Transportation System (ITS) domain. The ATMS view is a top-down management perspective that integrates technology primarily to improve the flow of vehicle traffic and improve safety.

        • Jeff Storey says:

          Yes, Ben Graham, it is an arms race to consolidate the industry. Here at Level 3 we go by the nick name of being the natural consolidator. O. Mason Hawkins has instructed me to focus on maximizing the value of the business on a per share basis. I intend to do just that by incresing the free cash flow yield to the highest potential. This will validate Mr. Hawkins comments made years ago that Level 3 will have huge, huge free cash flows with no taxes for many years, because of the accumulated net operating losses (NOLS).

  • Anonymous says:

    Carlk or ABC, please stop your non-sense.

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