Verizon (NYSE: VZ) is expanding its reach into CENX's Los Angeles and Washington, D.C. locations to address customer demand for the Ethernet exchange services they launched early last year.
The use of CENX Ethernet exchange is helping Verizon address both wholesale and large enterprise customer needs alike with new connectivity options.
On the enterprise side, Verizon said there is a growing number of MNCs that feel more comfortable connecting with Verizon at an exchange--therefore, they want to have that option on hand so they don't lose potential new business. At the same time, carrier customers will use the exchange because they can't justify purchasing an External-Network to Network Interconnection (E-NNI) agreement directly from Verizon as they only have a few customers to serve in a particular market.
Brendan Gunn, product line manager for Verizon's switched Ethernet services, said in a previous interview with FierceTelecom that Verizon is using Ethernet exchanges like CENX to not necessarily expand its geographical reach but rather to gain access to "segments of the market that we might not otherwise capture."
Gunn added that the kinds of companies that the Ethernet exchange would resonate with would be international players looking to serve one or two large MNCs that need Ethernet connectivity to a couple of remote offices.
In both situations, a carrier or MNC customer will gain the advantage of a more streamlined service process. A service provider could connect to CENX where Verizon is present. From there, CENX will handle necessary translations between Verizon and the carrier customer as services are activated.
This deal is also significant for CENX and the overall Ethernet exchange market. While AT&T (NYSE: T) and Qwest (NYSE: Q) have been noticeably absent from leveraging Ethernet exchanges, CENX now has further endorsement from a major tier one service provider that it can leverage as a proof point to sell to other global carriers interested in connecting to an Ethernet exchange.
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