Zayo announced yesterday that it had “a definitive merger agreement to be acquired by affiliates of Digital Colony Partners and the EQT Infrastructure IV fund”. The $8.2 billion deal takes Zayo off the New York Stock Exchange and puts it in the hands of owners who might have the patience to play the long game against the monopoly-model telcos – AT&T, Verizon and CenturyLink, particularly – who control the lion’s share of long haul and metro fiber in the U.S.… More
Climate change poses a significant threat to telecommunications infrastructure. That’s the conclusion of a recently published paper by three researchers from the University of Oregon and the University of Wisconsin.
The authors took standard electronic map data – i.e. geographical information system/GIS files – showimg major fiber routes and overlayed it with coastal flooding predictions made by the National Oceanic and Atmospheric Administration. The data shows thousands of miles of long haul fiber at risk…
The results of our analysis show that climate change-related sea level incursions could have a devastating impact on Internet communication infrastructure even in the relatively short term.
As a wild fire burned in the Santa Cruz mountains, a key AT&T fiber line was cut nearby, reportedly by a road maintenance crew doing previously scheduled work just before 5:00 a.m. on Tuesday of last week.
In 2009, a break in a different AT&T cable effectively knocked Santa Cruz, Watsonville and most of the rest of the county off of the Internet for most of a day. Since then, AT&T, Comcast and independent broadband companies have upgraded and diversified cable routes running north and south.… More
Make it quick.
Verizon is pumping up the volume about its three year deal with Corning to spend $1.05 billion on “fiber optic cable and associated hardware”. It even got a congratulatory (and self-congratulatory) press release from Federal Communications Commission chairman Ajit Pai. As it should It’s a big commitment and will add a considerable amount of potential bandwidth to the U.S. supply.
Verizon also claims that it will be buying “up to” 20 million kilometers (12.4 million miles, it helpfully adds) of “optical fiber” each year, from 2018 through 2020.… More
Verizon needs to build more than 100,000 new cell sites and add more fiber connectivity to close a capacity gap with its U.S. competitors, according to a report from New Street Research. And, the report concludes, buying Charter Communications – as rumors say it might – could help solve some of Verizon’s problems. It wouldn’t be much benefit to Charter, though.
The report estimates that when the number of cell sites and the amount of spectrum used is taken into consideration, Verizon has a bit more than half of the capacity per subscriber that AT&T and T-Mobile have.… More
Damage – serious market damage – will result from CenturyLink’s proposed acquisition of Level 3. The two companies argue that the new, combined operation will be a fiercer, more able combatant in the battle for business services accounts, and that might be true up to a point. But along key corridors in California and elsewhere the long haul fiber market will take a giant step toward monopoly.
Click for the investor presentation.
CenturyLink announced an agreement to acquire Level 3 yesterday. Valued at $34 billion – a combination of cash and stock – the deal would combine two of the biggest wholesale bandwidth providers in the U.S. According to Bloomberg, Level 3 is the second biggest, behind AT&T, and CenturyLink ranks fifth.
Both companies have extensive long haul and metro fiber networks. CenturyLink, which has the legacy Bell systems previously owned by Qwest, has more business locations, but Level 3 has more fiber: 200,000 miles of it.… More
Many, many middle miles.
Google might be defaulting, excuse me, pivoting to wireless broadband technology in last mile broadband markets, but it appears to be moving full speed ahead with laying underseas fiber to connect continents. And Facebook is sailing right alongside.
Google, Facebook, TE Connectivity – the former Tyco Electronics – and Pacific Light Data Communication, a Hong Kong-based start up, are partnering to build a submarine cable between Los Angeles and Hong Kong, with a completion target of summer 2018.… More
There’s a 45 Mbps divide in the wholesale bandwidth business, and the Federal Communications Commission is preparing new and separate regulations to address both sides. It’s one of the three key issues that chairman Tom Wheeler promised the cell phone industry he would address to clear the path for deployment of 5G technology, the other two being spectrum and local restrictions on wireless sites.
In a summary – Wheeler doesn’t release drafts of new rules to the public, preferring instead to limit his conversations to industry stakeholders – he described prices for (mostly) legacy broadband services at 45 Mbps and below as “artificially high” and outlined a plan to first cap current rates and then chop them over time, by as much as 20% in the next the three years alone.… More
A lot of long haul fiber criss-crosses through Union City, a town of about 70,000 people tucked in between Hayward and Fremont in the East Bay area, just north of Silicon Valley. The City of Union City has issued a request for proposals from companies interested in bidding to “design and install a high-speed dark fiber network in City-owned conduit” to take advantage of that wealth, and to spur development of a new business and residential area…
The Union City Station District is a high-density development area located around the Union City BART Station.