tw telecom's (Nasdaq: TWTC) dedication to providing Ethernet and IP VPN capabilities has resonated with the American Founders Bank has selected it to provide advanced voice and data services to the financial institution's seven locations in Kentucky.
Under the terms of the multiyear agreement, tw telecom is supplying the bank with a full suite of networking solutions including Ethernet, 30 MB IP VPN, 30 MB Ethernet Internet Service (EIS) and digital voice/voice-over-IP services.
A key point of the deal is that it represents the ongoing desire by multisite businesses to have Ethernet access to VPN services.
In American Founders Bank's case, the move to Ethernet-based access to VPN was necessary to accommodate its growth from one location to multiple branches throughout central Kentucky.
Having this capability coupled with an extensive metro and last mile fiber network is what helps service providers like tw telecom grow its Ethernet and VPN revenues. In Q3 2011, the competitive provider reported that in its enterprise portfolio, data and Internet revenue grew 4.1 percent sequentially and 18.6 percent year over year, which was driven mainly by a 27.5 percent increase year over year in strategic Ethernet and VPN-based products.
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