tw telecom (Nasdaq: TWTC) on Monday expanded the reach of its Ethernet E-Access, or "One to Many" wholesale service, for its service provider customers.
tw telecom's E-Line network provides a Layer 2 nationwide Ethernet backbone. (Source: tw telecom)
With the One to Many Ethernet service, wholesale customers that need to expand Ethernet access for a customer that has facilities outside of their respective network footprint can go to tw telecom to get a single connection point to get to multiple buildings in the CLEC's 75-city U.S. footprint.
While service providers have and will continue to work with their established External-Network to Network Interconnection (E-NNI) partners when they are fulfiling off-net opportunities, this service forgoes the need to establish agreements in areas where they have not served before. This process not only is expensive, but can delay the time to start delivering service.
One of the first publicly announced customers to take advantage of the One to Many service is Columbus Networks, a wholesale carrier that operates various submarine cable networks connecting the U.S. to other countries including Mexico, Central America, South America and the Caribbean.
Like other international service providers trying to get a foothold in the U.S. market, Columbus does not have its own landline infrastructure. It has to work with partners to fulfill orders in its Columbus Business Solutions and wholesale unit. By leveraging tw telecom's E-Access service, it can establish hub with a national footprint from their landing station in Miami.
"Our initial experience with tw telecom has enabled us to successfully connect to many U.S. customer locations from one network access point," said Peter Collins EVP and CTO of Columbus Networks, in a release announcing their agreement.
Being able to announce Columbus Networks as a customer could help tw telecom get the attention of other international carriers such as China Telecom that are trying to establish a greater foothold in the U.S. market to serve their multi-site customers.
Wholesale Ethernet access has become an emerging growth opportunity for tw telecom.
Even though the CLEC's Q3 2012 wholesale revenue declined by $1.5 million due to churn and repricing of contract renewals, it partially offset by Ethernet services it sells to both wireline and wireless operators. And while the One to Many service may be still relatively new, it could be a new revenue source as more large international carriers look for instant access into the U.S. market.
- see the release
On the Hot Seat: Talking special access with Larissa Herda of tw telecom
Special report: Meet 2012's competitive provider leaders
tw telecom Q3 revenue up 7.1% with ongoing adoption of Ethernet, VPN services
tw telecom serves up new Ethernet interconnection product
tw telecom's Dynamic Capacity service launches in Washington, D.C.
tw telecom expands fiber network into Kansas City area
tw telecom wins WAN contract with U.S. Dept. of Health and Human Services