Now that the first quarter 2016 earnings season is complete, FierceTelecom and FierceCable are taking a look at the results of the top U.S. ILECs and pay-TV operators. The first quarter was a time of great transition and transformation for most of these service providers.
Verizon's recent move to establish an agreement with Boston and its pending purchase of XO's fiber network shows that it seeing a new value in fiber assets.
Dark fiber may be remembered as a product of the.com age where competitive providers built out networks speculatively, but it's clearly back in telecom style. However, unlike the late 1990s build-it-and-they-will-come drive, dark fiber demand is today being driven by new service drivers-- small cell backhaul, data center connectivity and the FCC E-Rate program.
With tw telecom firmly under its belt, Level 3 has maintained its lead over Verizon and a host of traditional competitive providers in the Ethernet race.
Verizon is confident that its acquisition of XO Communications' fiber assets will give it an array of new dark fiber facilities that can satisfy its wireless densification efforts and enhance its enterprise business.
Level 3 Communications isn't afraid of the rapidly consolidating fiber service market and the company sees Verizon's recent purchase of XO's fiber network as a potential opportunity to compete for business with other enterprises and carriers.
The recent acquisition of XO Communications's fiber assets enables Verizon to address two near-term needs: an expanded Ethernet service reach with a larger set of on-net buildings and wireless backhaul, particularly to accommodate small cells. But the carrier still has a way to go in terms of its fiber network reach.
Verizon is acquiring competitive provider XO Communications' fiber business for $1.8 billion, giving it an expanded network to deepen its Ethernet penetration while satisfying its small cell and wireless backhaul needs.
Videotron has reached a deal to acquire fiber-centric service provider Fibernoire for $88.6 million, enhancing its ability to effectively compete with growing threats from U.S. providers like Zayo that are coming into Canada.
A group of ILECs-- AT&T, CenturyLink, Frontier, and Verizon-- have jointly asked the FCC to extend the deadline to submit Direct Cases related to the regulator's assessment of ILECs' special access rates.