Zayo Sells Some Southwestern 100G

With the rumor mill relatively quiet for a week, Zayo has announced a substantial longhaul bandwidth deal in the southwestern US. An unnamed webscale provider is purchasing multiple 100G waves between Dallas and Los Angeles, which Zayo says is one of its larger recent capacity sales.

This is one of Zayo’s newly built longhaul routes, begun back in 2015 and was just completed back in August of last year. In addition to the LA and Dallas metro areas, the high-fiber-count route passes through El Paso, Tucson, Phoenix, and San Diego.  Webscale companies are seeking diversity and triversity, and when crossing the southwest there was a lot of route overlapping in the industry’s inventory – which provided the original rationale for the buildout.

With the original anchor tenant and further follow-on sales since, this one is surely a welcome high margin win for Zayo. The company is under pressure operationally after stumbling on growth last year, leading to speculation of a buyout by private equity over the last few months. Zayo supposedly turned town a recent bid, but very few think that story is over just yet.

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Categories: Fiber Networks