Zayo snags 1,800 cell site backhaul contract covering 26 markets

Cellular antennas on tower

Zayo has won a contract to expand and upgrade an unnamed wireless operator customer’s fiber to the tower (FTTT) network, extending its dark fiber facilities to over 1,800 cell sites in 26 markets.

Similar to other large FTTT deals that Zayo has won with other wireless operators, Zayo will leverage the existing FTTT networks it has built out in 20 markets. This will enable Zayo to reduce capital costs to satisfy the wireless customer’s need to increase coverage and capacity.

Zayo said that this latest customer award represents follow-on sales to Zayo’s recently announced network expansions that are in progress, while introducing FTTT in six markets by leveraging the service provider’s existing dense metro dark fiber.

Upon completing this expansion, Zayo’s FTTT network will surpasses an estimated 10,000 cell sites nationwide, including those under construction.

Interestingly, Zayo’s FTTT wins are giving it a platform from which it can leverage to pursue other fiber deals with local school districts, a trend that’s taking place in key markets like Denver and Texas, for example. Zayo will build a 618-mile dark fiber network with the Denver Public Schools (DPS), Colorado’s largest school district. The network will connect 153 schools and sites, including two DPS data centers.

In Texas, Zayo is extending services across a 1,178-mile Texas school district, which leverages a 122-site FTTT build in Dallas. The service provider will bring services to schools located in the Texas Education Service Center Region 11 via a fiber network build that's under construction in Dallas-Fort Worth for a major wireless operator. 

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Dan Caruso, CEO of Zayo, told investors during the company’s earnings call that these deals “leverage the mobile infrastructure investment we put in place, as well as resulting the further extending of the fiber footprint that then could get leverage for other purposes over time.”

As a result of gaining new FTTT and E-Rate deals, Zayo reported its fiscal fourth quarter Dark Fiber Solutions revenues were $106.9 million, up 8.6 percent year-over-year.

For more:
- see the release

Related articles:
Zayo faces learning curve in dark fiber E-Rate market
Zayo's installs rise to $2.4M, but bookings fall in uneven fiscal Q4
Zayo Group’s follow-on sales, Allstream integration, net installs could lift it to record quarter, analyst says
Zayo snags 12 new customers for its Sacramento-to-Salt Lake City fiber route

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