Pacnet penetrates U.S. market with tw telecom E-NNI agreement
Pacnet, a competitive service provider focused on the Asia Pacific market, has established a new foothold in the U.S. business market by establishing an E-NNI (external network-to-network interconnection) agreement with tw telecom (Nasdaq: TWTC).
Under the terms of the agreement, tw telecom is offering the Hong Kong-based service provider its "One to Many" Ethernet service from their submarine cable landing stations in Chicago, Los Angeles and New Jersey.
By using the "One to Many" E-Access network service, Pacnet will be able to provide its U.S.-based customers connections to their locations throughout the Asia-Pacific region, including China, India, and Australia.
Establishing E-NNI agreements with international carriers like Pacnet is a growing trend amongst both incumbent telcos and competitive providers like tw telecom. Foreign service providers like Pacnet often lack network presence in the U.S. and need partners that have a deeply established footprint to extend services to their business customers.
Both service providers bring plenty of assets to the table.
Pacnet currently delivers its suite of managed data, private line, data center services and content delivery over its 29,000 miles of subsea fiber. Likewise, tw telecom's national Ethernet network connects to nearly 19,100 buildings, including 450 third-party data centers and their tenants in the United States.
Giving wholesale customers like Pacnet access to its lit buildings and data centers has become a key element for tw telecom. The competitive provider recently announced that its fiber services are available in 30 data centers in the Bay Area.
tw telecom is hardly alone in providing broad E-NNI agreements. Windstream (Nasdaq: WIN), for example, recently announced that it established 9 E-NNI locations in the U.S. market it serves as both ILEC and CLEC.
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