Original Article Posted on Carrier Ethernet News
Global Capacity and PEG Bandwidth are as good match for each other as they are for companies seeking fiber-based Ethernet connections to underserved markets across the Midwestern and Eastern U.S. The two companies are establishing wholesale buy-and-sell interconnects at Global Capacity's One Marketplace points of presence (PoPs) in Ashburn, Va., Chicago, Dallas, Pittsburgh and New York City, according to Mary Stanhope, vice president of product and marketing for Global Capacity, Chicago.
PEG Bandwidth was launched in 2009 to provide fiber- and microwave-based Ethernet backhaul services for mobile carriers. Since then, the company has purchased, leased or built a total of 15,000 route miles of fiber and established backhaul contracts at more than 2,800 cell sites, said Greg Ortyl, senior vice president of sales and marketing for PEG Bandwidth, Bala Cynwyd, Pa.
The company's unique footprint is what makes it so attractive to Global Capacity. PEG Bandwidth's fiber passes almost 1.7 million buildings that are home to approximately three million businesses in lower tier cities, explained Ortyl.
After completing its initial fiber network for mobile backhaul purposes, PEG Bandwidth executives began to explore what other "great revenue opportunities" the company could pursue. Teaming with Global Capacity was the next logical step to take in a new wholesale direction, Ortyl explained.
"This partnership is ideal for us because of the resources Global Capacity has to get out in front of the folks that are tying in big networks and looking for comprehensive solutions that provide them with the rural connectivity and capacity to multiple locations," said Ortyl.
Indeed, Global Capacity's customer base and streamlined provisioning process enables PEG Bandwidth to remain highly focused on its core wholesale business while it pursues new business. In addition to the deal with Global Capacity, PEG Bandwidth also is taking initial steps to sell Ethernet services to enterprises in selected locations.
While Global Capacity has many partners, PEG Bandwidth's sizeable and unique geographic footprint and strong desire to grow its business make this partnership unique, said Stanhope.
"Many fiber to the tower providers with rural assets have more concentrated footprints and are not as focused to grow their networks with business Ethernet services as PEG Bandwidth," said Stanhope.
"We are growing extremely fast and that presents a challenge in and of itself," he added. "It's also why we think that partnering with Global Capacity is a great way to make a splash in this space."
In the big picture, the deal reflects Ethernet's continuing maturity as a service because it brings fiber-based Ethernet in a big way to customers located outside of saturated metro areas. Assets that otherwise would remain unavailable to customers now are opened up, said Stanhope.
"The number of buildings on-net in the U.S. has hovered around 38% for too long. We need to hit 50% sooner rather than later," she explained.
Most of the customers needed to increase on-net fiber penetration are located in lower tier cities, added Ortyl.
Interestingly, PEG Bandwidth has a lot in common with Global Capacity as the company built its network from scratch. PEG Bandwidth purchased fiber from nearly 60 providers throughout the country as it acquired anchor tenants to use that fiber. Many sellers had never executed fiber agreements before. The carrier also deployed about 6,000 route miles of fiber, said Ortyl.
"We are trying to bridge the broadband gap for our customers," he added.