Zayo Group Holdings, Inc., incorporated on November 13, 2007, provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud infrastructure to a range of businesses. The Company is a provider of bandwidth infrastructure in the United States, Canada and Europe. The Company operates in five segments: Dark Fiber Solutions, Network Connectivity, Colocation and Cloud Infrastructure, Zayo Canada and Other. Its products include leased dark fiber, fiber to cellular towers and small cell sites, wavelength connections, Ethernet, Internet Protocol (IP) connectivity and cloud services. Its products and services enable high-bandwidth applications, such as cloud-based computing, video, mobile, social media and machine-to-machine connectivity. As of June 30, 2016, the Company owned fiber networks in 300 metro markets, including metro, such as New York, Chicago, San Francisco, Paris, and London, as well as smaller metro, such as Allentown, Pennsylvania, Fargo, North Dakota, and Spokane, Washington. The Company also provides its network-neutral colocation and interconnection services utilizing its own data centers. The Company provides clients with solutions and self-service through Tranzact, an online platform for managing and purchasing bandwidth and services. As of March 1, 2017, the Company operated 8,100 route miles of long haul fiber and 4,000 miles of dense metro fiber across Denver, Minneapolis, Phoenix, Portland, Seattle, Sacramento, San Francisco, San Jose, Salt Lake City, Spokane and Boise, with on-net connectivity to over 3,100 enterprise buildings and 100 data centers.
Dark Fiber Solutions
The Company, through the Dark Fiber Solutions segment, provides raw bandwidth infrastructure to customers, which require control of their internal networks. These services include dark fiber and mobile infrastructure fiber-to-the-tower (FTT) and small cell. Dark fiber is a physically separate and secure, private platform for bandwidth. The Company leases dark fiber pairs (usually 2 to 12 total fibers) to its customers. Its mobile infrastructure services provide direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers. Dark Fiber Solutions customers include carriers and other communication service providers, Internet service providers, wireless service providers, media and content companies and other companies. The contract terms in the Dark Fiber Solutions segment tend to range from 3 to 20 years. Strategic Product Groups within the Dark Fiber Solutions segment includes Zayo Dark Fiber and Zayo Mobile Infrastructure Group (MIG).
Through Dark Fiber Strategic Product Group, the Company provides dark fiber and related services on portions of its existing fiber network and/or newly constructed network segments. The MIG Strategic Product Group provides two key services: fiber-to-the-tower (FTT) and small cell infrastructure. MIG customers are wireless carriers. FTT products consist of fiber-based backhaul from cellular towers to mobile switching centers.
The Network Connectivity segment provides bandwidth infrastructure solutions over its metro, regional, and long-haul fiber networks where it uses optronics to light the fiber and its customers pay for access. Its services within this segment include wavelength, Ethernet, IP and Synchronous Optical Networking (SONET). Network Connectivity customers include carriers, financial services companies, healthcare, government institutions, education institutions and other enterprises. The contract terms in this segment tend to range from 2 to 5 years. Strategic Product Groups within the Network Connectivity segment includes Zayo Wavelength Services (Waves), Zayo Ethernet Services (Ethernet), Zayo Internet Protocol Services and Zayo SONET Services (SONET).
Through Wavelength Services Strategic Product Group, the Company provides lit bandwidth infrastructure services to customers by using optical wavelength technology. The Ethernet Services Strategic Product Group provides lit bandwidth infrastructure services to its customers utilizing Ethernet technology. The Internet Protocol Services Strategic Product Group provides lit bandwidth infrastructure services to its customers utilizing Internet Protocol technology. The SONET Services Strategic Product Group provides lit bandwidth infrastructure services to its customers utilizing SONET technology.
Colocation and Cloud Infrastructure
The Colocation and Cloud Infrastructure segment provides data center infrastructure solutions to a range of enterprise, carrier, content and cloud customers. The Company's services within this segment include colocation, interconnection, cloud, hosting and managed services, such as security and remote hands offerings. Solutions range in size from single cabinet and server support to international outsourced information technology (IT) infrastructure environments. The Company's data centers also support a component of its networking equipment for the purpose of aggregating and distributing data, voice, Internet, and video traffic. The contract terms in this segment tend to range from 2 to 5 years. Strategic Product Groups within the Colocation and Cloud Infrastructure segment includes Zayo Colocation (zColo) and Zayo Cloud Services.
As of June 30, 2016, the zColo Strategic Product Group provided network-neutral colocation and interconnection services in 61 data center facilities across 42 markets throughout the United States and France. The Zayo Cloud Services Strategic Product Group combines private cloud, public cloud and managed services in order to provide its customers infrastructure as a service (IaaS), which enables on-demand scaling and virtual computing in hybrid environments.
The Zayo Canada segment provides services, including the legacy dark fiber, network connectivity, cloud and colocation infrastructure, voice, unified communications, managed security services and small and medium businesses (SMB) of Allstream. Unified communications is the integration of real-time communication services, such as telephony (including IP telephony), instant messaging and video conferencing with non-real-time communication services, such as integrated voicemail and e-mail. Managed security services provide proactive services and solutions designed to enable organizations to operate in an environment of constantly evolving threats from organized cyber-crime. The service provides real-time threat analysis and correlation of information security threats, response and mitigations services, secure access to the Internet and the cloud, information risk and compliance services, and management of the IT security envelope. As of June 30, 2016, Zayo Canada provided services to 26,000 customers in the SMB market. These include IP, Internet, voice, IP trunking, cloud private branch exchange, collaboration services and unified communications.
The Company's Other segment consists of Zayo Professional Services (ZPS). ZPS provides network and technical resources to customers using its solutions in designing, acquiring and maintaining networks.
The Company competes with Lightower, Sunesys, DQE Communications, Edison Carrier Solutions, Comcast, Time Warner Cable, PEG Bandwidth, Conterra, TTMI, AT&T Inc., CenturyLink, Inc., Verizon Communications Inc., Level 3 Communications, Inc., Cogent Communications, Southern Light, Equinix, Inc., The Telx Group, Inc., Coresite and Cologix.