tw telecom (Nasdaq: TWTC) may not be a data center provider itself, but with its fiber now being connected to over 30 sites in the San Francisco Bay Area it's clear that it has become a key data center provider partner.
The expansion into more of these centers is one part of its network expansion to provide Ethernet and IP-based services to businesses located in Menlo Park, Mountain View, Palo Alto, Redwood Shores, San Jose, San Mateo, Santa Clara and Sunnyvale, Calif.
Its Bay Area fiber network extends from South San Jose up to the San Francisco peninsula, throughout the East Bay into Oakland and Walnut Creek, and north to Sacramento.
For the business market, Ethernet has become the service provider's flagship product. Over the past six years, tw telecom has held onto the third spot in Vertical Systems Group's U.S. Leaderboard rankings, trailing only AT&T (NYSE: T) and Verizon (NYSE: VZ).
What's helped maintain that standing is its aggressive fiber buildout into buildings in key markets. Overall, tw telecom's U.S. network is connected to 19,000 commercial buildings.
Having broad fiber-based coverage in major markets like the Bay Area means that tw telecom can deliver a wide range of speeds, including its recently announced 40 and 100 GigE products and connectivity to IP VPNs.
In addition to speeds, the CLEC has been enhancing its Ethernet capabilities with its national Ethernet interconnection solution and Dynamic Capacity capabilities. One-to-many enables other competitive providers to instantly expand their out-of-region Ethernet and network reach, while its Dynamic Capacity product allows existing customers to dial up bandwidth as needed.
Ethernet continues to play a big role in tw telecom's revenues. During the second quarter, strategic revenues, which comprise Ethernet and IP/VPN services, grew 19.9 percent year-over-year and 4.7 percent sequentially.
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