FierceTelecom: So basically 360networks is playing the role of an aggregator?
Adams: Yes. We're looking at aggregating services and bringing the Internet closer to the Tier 2 markets more so than bringing them out of Tier 2 markets into the Internet and we're going to focus pretty hard on that. A lot of our business comes from the top three wireless operators, which is a very capital intensive business to building fiber out to these towers. It will be a large business opportunity for us so we're going forward.
We continue to spend a lot of money on our network, but it will be essentially be a big cloud. With our Ethernet fabric, it doesn't matter if your content is sitting in Los Angeles or wherever, we'll be able to match those two locations. If you're a small rural ISP in Iowa, you don't have enough content to facilitate a private peering connection with any of the major carriers or large Internet providers like Google. What I will do is put together a package that says, 'okay, Google, I have a number of remote ISPs and I want them to allow them to peer with you to save money on transit and you want to improve the quality you give to their customers, so I'll marry you two together.' The incumbent pays me a little money and maybe Google pays me. We have to balance the cost of providing that service to the rural area against giving the customer the flexibility to do creative services.
FierceTelecom: You mentioned 360network's Ethernet fabric. What does that consist of and how does it help you deliver wholesale services?
Adams: We have this large DWDM network. What we have within that is two segregated paths. One is a Layer 2 MPLS network that's subtending the DWDM network. Within that I have full autonomy without ever touching more core network backbone for Layer 3 to create full Ethernet access on the edge. By October, if you look at any POP sites on our network, we can provide Layer 2 services from that point to any other point on our fabric and beyond using other people's networks and it is a true Ethernet network.
What it's not is a bunch of leased 10G circuits that some of these providers are out there trying to monetize their circuits by offering Ethernet. This is truly a low-latency, highly efficient, and highly resilient Ethernet service. It is purpose built for Ethernet. This is not an adjunct to. Other providers have these networks where they are trying to aggregate Internet providers, and 'oh by the way we'll offer Ethernet service on top of this.'