Telecom Ramblings

Here’s a quick look at a few news items that flashed past already this week:

Navisite (NASDAQ:NAVI, news, filings) [a subsidiary of Time Warner Cable (NYSE:TWC, news)] has sold off a piece of its colocation business, as it executes on a plan to focus on managed and cloud solutions.  Cologix will buy the company’s Dallas facility and customers for $12.75M in cash, although [Read more →]

Earthlink (NASDAQ:ELNK, news, filings) took another big step toward becoming a major national CLEC, announcing this morning a definitive agreement to purchase the struggling One Communications.  The price will be $370M, including $285M that will go to paying off debt.  The EV/EBITDA multiple for the deal was given as 3.7, reflecting $80M in trailing twelve months EBITDA plus $20M from synergies to be realized.   [Read more →]

So the FCC appears to be poised to vote on its latest proposal for network neutrality, and from all appearances it will pass 3-2.  So why hasn’t Telecom Ramblings’ offered  commentary on this subject until now?  Well, to put it bluntly, what we have is a proposal a) that has yet to actually see the light of day, b) whose underlying power is derived from the FCC’s ability to creatively reinterpret its own mandate, c) that probably doesn’t cover [Read more →]

Privately held metro fiber operator FiberLight (news) unveiled a new strategy on Friday aimed at increasing the company’s on-net building footprint.  They have identified some 8000 ‘near-net’ buildings and towers across their 4200 metro route miles in 21 markets that it can serve cost effectively.  This is a significant step in that while FiberLight has enterprise customers, its 700 or so on-net buildings are mostly large wholesale sites and towers.  While they will surely only add a fraction of the 8000 locations on their target list in the next year or two, the expanded [Read more →]

TGIF, here’s a quick look at the news that slipped past me during the week:

lyns updated its guidance for the fourth quarter of 2010, promising an unexpected bounty – profitability.  The company also unveiled some unaudited results for October: revenues of $6.61M and gross profit of $2.23M.  The boost comes in part from the acquisition of SouthEast Telephone, and in part due to its shift in emphasis toward [Read more →]

As expected, Comcast quickly fired back this morning in a blog post.  Comcast said they offered to trial a “different architectural approach” but that Level 3 walked out when Comcast wouldn’t agree to a “zero cost outcome” in advance.  I have no doubt that Level 3 has an alternative view here, but I have an immediate question:  What is this different architectural approach the two sides came up with? [Read more →]

Level 3 Communications (NYSE:LVLT, news, filings) has taken its dispute with Comcast (NASDAQ:CMCSA, news, filings) over interconnection fees to the next level.  They have directly asked both the FCC and DOJ to attach conditions to the cable giant’s proposed acquisition of NBC Universal.  Those conditions would require Comcast to interconnect with internet backbone providers via [Read more →]

Western European metro operator euNetworks (news) has added a new low latency arrow to its quiver, expanding its potential in the financial vertical.  But this time it’s not within or between the familiar London and Frankfurt haunts nor even involving other nearby hubs mentioned of late in Paris and Amsterdam.  This time, it’s a lightning-quick London-to-Stockholm route, bringing Scandinavia into the low latency picture.   [Read more →]

We don’t hear very much about the fiber activities of the largest cable companies, so it was nice to see Time Warner Cable Business Class offer details on its recent buildout in Southern California.  They have put $120M into their network in the greater LA metro area, building some 16 fiber rings containing 360,000 fiber miles.  By anyone’s measure that is a major investment, and Time Warner says it will allow them to serve an additional 125,000 businesses.  Where do those rings go? [Read more →]

I’m sorry, but did we really need to coin the term “Cupcake-Gate”…  Apparently AT&T (NYSE:T, news, filings) went and gave gourmet cupcakes to the FCC, and I don’t mean just to a few commissioners.  127 dozen, or 1,524 cupcakes, worth about $3,700 in all landed on desks all over the agency.  This was immediately seized upon by the interest group Public Knowledge, which apparently saw this as an opportunity to put on the Grinch suit that [Read more →]

Apparently, entering the dark fiber business isn’t so easy after all.  Today on its official blog, Google announced that it needs another few months to choose in which community it will build that fabled 1Gbps fiber network that was the buzz of the internet so long ago.  Well, 9 months ago anyway – seems like longer than that, doesn’t it?  So what’s taking so long?  Too many entrants – 1100 communities was far more than Google anticipated.  But what did they expect?
[Read more →]

It has been quite a year for consolidation in the fiber/CLEC space, with more than twenty deals of various types taking place.  But with the exception of the CenturyLink/Qwest deal, nearly everything that has been bought has been in the $500M range or smaller – usually much smaller.  Back in September, I put together a tally of the deals that had happened until then.  Of course, there’s still room for a few more before the end of the year, but let’s dare fate and update that list here with the various deals that have been announced since. [Read more →]

Time to catch up some recent news of interest.

Metro fiber operator abvt announced another strategic expansion, but this time it isn’t into a new market but rather deeper into a more familiar space.  They are expanding their sales efforts within carrier neutral datacenters across their footprint, both those they are currently connected to and new ones which they will bring on-net.  Sounds like a no-brainer to me.  But actually, word has it that Abovenet has [Read more →]

In what was one of the less definitive notes of December, Sprint Nextel (NYSE:S, news, filings) offered the markets an update on its relationship with WiMAX protagonist clwr.  I say ‘less definitive’, because their update was mainly to tell us what they might or might not do: [Read more →]

I don’t know how I missed it at the time, but last week Zayo Group (news, filings) unveiled yet another investment into its Fiber-to-the-tower program.  While the supra-regional fiber operator had already put money into FTT projects around Memphis, this new deployment will add another 34 cell sites both in Memphis and now across the southern border into northern Mississippi, including such towns as Southaven and Olive Branch (see map snippet below).  [Read more →]

Over on the Ramblings’ jobs board, we have two new listings from Zayo Bandwidth.  Zayo always seems to be expanding on multiple fronts, and it’s nice to see a bit of hiring just a few months after closing the AFS purchase and as winter is about to officially begin (someone remind Minneapolis that winter hasn’t started yet!).  First, Zayo is looking for a Sales Engineer, responsible for providing coaching and development to Carrier Account Executives, and providing technical support throughout the sales process.  Second, Zayo is looking for [Read more →]

I had thought the fiber M&A frenzy would ebb for the holidays, but no.  Following closely on the heels of Sidera’s purchase of LIFE, Lightower Fiber Networks has struck again, making its third acquisition this year.  This morning the northeastern regional and metro fiber operator announced the acquisition of Open Access Inc.  Open Access is based in Farmingdale, NY, and operates a fiber network across Long Island and into Manhattan, with over 400 route miles and 230 fiber-fed buildings as well as a tier-2 colocation facility at their headquarters.   [Read more →]

Not long ago, I had the opportunity to talk once again with AboveNet’s Chief Executive Officer, Bill LaPerch, who today makes a return visit to Telecom Ramblings’ Industry Spotlight series.  Few companies have weathered the economic storms of the last several years better than AboveNet, which resurfaced from near oblivion about two years ago and has been one of the best turnaround stories in the sector ever since.  This year, they have eschewed (thus far) the spasm of M&A that has engulfed the metro fiber sector in favor of expansion into new markets, very solid organic growth, and a recently announced special dividend.  With no further ado: [Read more →]

sidera announced today that it has agreed to purchase the Long Island Fiber Exchange (LIFE).  In doing so, they and their new owners, ABRY Partners, have made a down payment on their promise to use the former RCN Metro assets as a platform for consolidation in the metro fiber space.   [Read more →]

Earlier this week, Bloomberg and others reported that a group of European wireless operators are renewing their call for Google, Apple, and others like them to help pay for network upgrades.  France Telecom, Telecom Italia, and Vodafone say that they need content providers to pay fees based on usage, lest the cost of upgrades outstrip revenue growth.  That’s the general concept, but what exactly are they asking for?  Because the details are everything. [Read more →]

Time to catch up on a few of the goings-on with clouds and data centers this week:

Yesterday saw two cloud wins for Equinix (NASDAQ:EQIX, news, filings) from opposite sides of the globe.  In Amsterdam, the longtime Dutch ISP Cyso has moved into Equinix’s brand new AM2 facility in Amsterdam.  From there Cyso will [Read more →]

Telecommunications equipment maker Ciena (NASDAQ:CIEN, news, filings) reported fiscal Q4 and 2010 earnings this morning, bringing what they correctly call transformative year to an end.  Revenue of $417.6M were up 7% from the prior quarter and were solidly above expectations for the period ending on Oct 31.  Of that, some $255.6M came from the Nortel MEN assets, meaning that the original Ciena business managed $161M or so, down sequentially from $168M in the prior quarter.  In other words, the Nortel assets outperformed, while Ciena’s original business lagged somewhat.  However, from here on out it’s the aggregate [Read more →]

Back in September, privately held CLEC One Communications threw its hat into the M&A ring, hiring Blackstone to help it explore strategic alternatives following its sale of its FiberNet business.  According to a Reuters article, final bids were due on Tuesday (Dec 7), exactly ninety days later.  The sale process is described as lukewarm, however the sellers appear motivated and hence I [Read more →]