Zayo is a leading global provider of communications and bandwidth infrastructure with an international fiber network that covers 133,000 route miles and connects 35,000 buildings in North America and Western Europe. By leasing fiber and fiber-based lit solutions, the Company enables mission-critical, high-bandwidth applications such as cloud-based computing, video, mobile, social media, and machine-to-machine connectivity.
Zayo’s key products include leased dark fiber, fiber to cellular towers and small cell sites, dedicated Wavelength connections, Ethernet, IP connectivity, data center colocation, other high-bandwidth offerings. The Company’s customers include large and sophisticated users of bandwidth infrastructure, such as wireless service providers, telecommunications companies, financial services businesses, social networking, media, and web content companies, education, research and healthcare institutions, and governmental agencies.
Market trends and drivers
The demand for fiber connectivity is growing, driven by secular trends associated with fundamental shifts in both consumer and enterprise behaviors. There has been explosive growth in the proliferation of bandwidth intensive applications (e.g., cloud computing, remote data storage, over the top video streaming, social networking, etc.). Enterprises continue to migrate away from legacy networks towards reliable, high bandwidth fiber-centric networks in order to connect to discrete locations, data centers, and key locations within their organizations. Wireless carriers depend on fiber infrastructure providers to increase carriers’ coverage and densification requirements, resulting in significantly increased demand for bandwidth infrastructure, specifically for fiber backhaul for existing 4G sites and upgrades for such sites to 5G. End users such as private enterprises (e.g., media/ content providers, financial institutions and hospital systems) and public sector entities (e.g., governmental agencies and school districts) are increasingly focused on digital transformations which have increased the amount of data they are trading in, thus increasing their need for reliable fiber network infrastructure. Fiber infrastructure providers such as Zayo are poised to benefit from these secular trends.