Las Vegas--Alpheus Communications on Monday completed a dark fiber indefeasible right of use (IRU) deal with independent competitive provider Fidelity Communications, enabling it to expand transport between Dallas and Memphis to better serve its broadband customer base.
In operation since 1940, Fidelity serves over 60,000 businesses and residential customers in five states with everything from broadband data to PBX systems and IP office solutions.
Since Dallas-to-Memphis is a key route for many service providers,securing IRU with Fidelity provides Alpheus with a proof point of its growing fiber-based wholesale business.
"We sold them a dark fiber asset that went from Dallas to Memphis, Tenn. and they are looking to expand their network and connect a number of their head ends and LEC facilities," said Scott Widham, CEO of Alpheus, in an interview with FierceTelecom. "It just so happened that our asset and their needs came together and we were able to cut a commercial deal that benefited us both."
Interestingly, Alpheus and Fidelity aren't entirely strangers. Before taking over Alpheus, Widham oversaw CoBridge with investor partner the Gores Group.
Like other regional independent telcos, Fidelity could be described as a hybrid ILEC/cable operator.
Over the years it has purchased various smaller cable operators in surrounding states such as Arkansas, Louisiana, Missouri, and Oklahoma. In 2012, the telco made its biggest acquisition to date by purchasing 14 cable, phone and Internet systems in four states from Cobridge Communications.
One of the trends that Fidelity appears to be driving is an increased interest from traditional telcos in cable.
"As people generationally get rid of their landline phones, a lot of telcos are buying cable companies and Fidelity is one of those examples," Widham said.
For more:
- see the release
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