Zayo has become the latest service provider to achieve MEF Carrier Ethernet 2.0 (CE 2.0) certification, giving its wholesale and retail business customers peace of mind that the service provider's Ethernet platform is compliant with current standards.
This certification enhances Zayo’s ability to deliver seamless standards-based local, national and global Ethernet services, with the same interoperability and performance features regardless of customer location.
The certification also validates Zayo’s ability to provide best-in-class Ethernet solutions that meet stringent operator-to-operator requirements. Zayo’s services include E-Line, Point-to-Point, Multipoint and E-LAN configurations. The company also offers Ethernet Private Dedicated Network, providing customers with dedicated fiber and equipment, and FlexConnect, a usage-based service.
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As Carrier Ethernet has evolved, MEF has developed this new certification that it conducts in a third-party test lab, using more than 600 test cases based on MEF specifications.
Zayo’s CE 2.0 achievement comes at a transitional time for the company. Following the closing of its Electric Lightwave acquisition—a deal that deepened its fiber assets on the West Coast—Zayo reorganized its business into five main segments, a move analysts say will provide greater visibility into their operations. Under the new structure, Zayo’s business segments will include fiber solutions, colocation, transport, enterprise networks, and Allstream voice and small to medium-sized business (SMB). All of these segments will share a common sales and customer service team.
By gaining CE 2.0 certification, the service provider will be able to present to its now-larger customer base an Ethernet portfolio that complies with the gamut of all existing and new service generations. Ethernet, CE 2.0 consists of Multiple Classes of Service, Interconnect, and Manageability, enabling the delivery of differentiated applications over a mix of managed and interconnected networks. MEF has also continued to name CE 2.0-compliant vendor platforms that Zayo can help procure for its client base.
Zayo can also use the CE 2.0 certification to compete more effectively with smaller CLECs and, increasingly cable operators, which are expanding their fiber and Ethernet service portfolios. However, a number of cable operators and larger competitors like Comcast, Cox and Level 3 are also CE 2.0-compliant.
While Zayo won’t report its third-quarter fiscal year 2017 earnings until May 9, Ethernet was a clear growth contributor to the company’s second-quarter fiscal year 2017 Network Connectivity business revenues. This segment, which includes Waves, Ethernet services and IP services, has a strong cash flow profile of 23% of revenue. Network Connectivity revenues during that period were $177.6 million.