ChannelVision Jan-Feb 2017

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Zettabytes
Highlights of the program
include training and enablement
tools, marketing development
funds, healthy tier discount, deal
registration and account manag-
ers. There are also professional
services opportunities for perfor-
mance audits, configuration and
DevOps integration.
Zayo toAcquire
Electric Lightwave
Zayo Group has entered into
an agreement to acquire Electric
Lightwave, formerly known as
Integra Telecom, for $1.42 bil-
lion in cash and debt. Electric
Lightwave, which provides infra-
structure and telecom services
primarily in the Western United
States, has 8,100 route miles of
long haul fibre and 4,000 miles
of dense metro fibre in Portland,
Seattle, Sacramento, San Fran-
cisco, San Jose, Salt Lake City,
Spokane and Boise, with on-net
connectivity to more than 3,100
enterprise buildings and 100
data centers.
Zayo anticipates more than
$40 million in annual cost syner-
gies to be realized throughout
the integration process and will
benefit from more than $400
million in net operating loss
carry-forwards acquired in the
transaction. Zayo expects to
close the transaction in the first
quarter of 2017, subject to cus-
tomary regulatory approvals and
closing conditions. The deal will
be funded with a combination of
cash on hand and debt.
“Electric Lightwave provides
us another unique and dense re-
gional fiber network that advances
our position as the only national
independent infrastructure pro-
vider remaining in the U.S.,” said
Dan Caruso, chairman and CEO
of Zayo Group. “Electric Lightwave
Telecom Capex in ‘Flatland’
Worldwide service provider capex spending is slowly crawling back to 2014
levels, but a pickup in 2016 signals long-term flatness triggered by the
combination of moderate desynchronized regional investment cycles, themselves
triggered by very distinct agendas, said Stéphane Téral, senior research director,
mobile infrastructure and carrier economics, IHS Markit.
Global Service Provider Capex
Source: IHS Markit
Growth in Global Broadband Subs by Technology
Source: Point Topic
Global Port Revenue, 1G - 100G
re Spending Plans for Next Quarter
r organization’s
AN manageme
s? (Select all that apply)
file: Data Ce
nomics
13%
62% 64%
16% 16%
Previous Survey
(Jul ‘16)
Current Survey
(Oct ‘16)
ending
ize your compa y’s spending plans for
days compared to the previous 90 days?
No Change Less Spending
w Moderate High
rity across
nnections
increased
uirements
55%
50%
$360
$350
$340
$330
$320
$310
$300
$290
$280
$270
$260
2014 2015 2016 2017 2018 2019 2020
US $Billions
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
-20.00%
-40.00%
6.5%
Cable
-16.4%
FTTH FTTx Others
-3.9%
Copper
Satelite
89.6%
4.5% 8.4%
$60
$50
$40
$30
$20
$10
US$ Billions
has both strong metro fiber assets in key West Coast
markets and capacity and routes that will augment
Zayo’s intercity footprint.”
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Oregon
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Bay Area
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ChannelVision | January - February, 2017 28