Tuesday, November 9, 2010

Who Buys Metro Bandwidth, What Do They Buy?

Zayo Group recently closed its deal to buy American Fiber Systems, which provides metro bandwidth services in Boise, Kansas City, Las Vegas, Nashville, Reno, and Salt Lake City.

So what types of firms buy metro bandwidth products in those cities? As you might expect, communications carriers and Internet access providers, especially the large carriers, represent 40 percent of sales. Enterprises or large public organizations represent 27 percent of sales.

But mobile companies account for 15 percent of sales as well. Education organizations represent seven percent of demand while content companies represent six percent of sales. Healthcare organizations represent five percent of sales.

About 33 percent of sales volume is dark fiber and 29 percent of sales are for private line services.

Ethernet now represents 16 percent of sales while Internet access contributes 13 percent of revenue. Optical wave sales contribute another eight percent of revenue.

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