Lightower Fiber Networks, Sidera Networks to merge

2013-01-14 16:55:44

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Infonetics: Expect capex growth in 2013
A new report from Infonetics Research suggests that carrier capital expenditures (capex) appear to have grown in 2012 – a trend that the market research firm expects will continue this year. However, optical equipment vendors may find that they haven’t been invited to the party.Infonetics makes the prediction in its Service Provider Capex, Revenue, and Capex by Equipment Type report, which tracks service provider revenue and capex by operator type, region, and equipment segment as well as offers insight into spending trends."With three quarters of the data in and a careful review of carrier investment plans for each major world region, overall telecom service provider capex is on track to be up close to 4% this year led by Asia and North America, and 2013 is looking bright for all regions," said Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research, just before the holidays."With investment plans out from AT&T and Deutsche Telekom, combined with the plans of a long list of major and smaller operators around the globe, we can safely say that 2013 and 2014 will be positive capex years, which is good news for vendors,” Téral added. “Deutsche Telekom's 30 billion euro three-year investment plan [announced in December] will help lead a return to investments in the EMEA region. Service providers have no choice but to invest in their networks now; some have been restricting capex for so many years that they are experiencing network outages, unable to handle exploding traffic. There is very high demand for telecom services everywhere, particularly for mobile broadband.Video and wireless infrastructures were the principal targets of telecom capex in 2012. Yet most areas will have seen spending increases, Infonetics says. Unfortunately, optical transport equipment, along with TDM voice, will prove to be one of the boats the rising capex tide didn’t float, the company predicts.Looking ahead, major areas of operator investment through 2015 will include fiber-based wireline broadband access, 2G mobile network capacity expansion, 2G migration to 3G, and migration to LTE projects, the report forecasts. Pure-play wireless operators will account for nearly a third of all telecom capex by 2016, driven by 3G and LTE rollouts in China, India, and Africa, the report adds.Global service provider revenue for 2012 should come in at $1.9 trillion, up 4% from 2011. Asia Pacific will account for about a third of global service provider revenue by 2016, propelled by China Mobile, the world's largest mobile operator by revenue and subscribers
Lightower Fiber Networks, Sidera Networks to merge
Metro fiber-optic network services provider Lightower Fiber Networks will merge with fellow network services supplier Sidera Networks in a more than $2 billion deal led by Berkshire Partners, a Boston-based investment firm, and management.[UPDATED] Existing Lightower investor Pamlico Capital and Sidera investor ABRY Partners will remain investors in the new company. M/C Partners, which joined with Pamlico Capital to acquire Lightower from National Grid plc in August 2007, will sell its stake as part of the deal, as will fellow Lightower investor Ridgemont Equity Partners. Contrary to what Lightwave reported previously, Sidera investor Spectrum Equity Investors will remain invested in the new company.Current Lightower CEO Rob Shanahan will lead the new company. The merger is expected to close in the second quarter of 2013, pending regulatory approval."Lightower and Sidera together will offer customers an industry-leading, fiber-based network with a deeply experienced team supporting it," stated Shanahan. "Both companies have a shared vision of network excellence, customized solutions, and superior customer support. Once merged, we will offer customers more services, more routes, and more access options with the same high levels of performance, diversity, reliability, and support that our customers have come to expect from us."Lightower has operated in the Northeast (see, for example, "Lightower Fiber Networks launches 100-Gbps services via Ciena 6500"), while Sidera has focused on the Mid-Atlantic and the Midwest as well as the metro New York City area (see "RCN Metro Optical Networks re-launches as Sidera Networks" and "Sidera Networks announces Xtreme Ultra-Low Latency Network expansion"). The combined company therefore will operate in all three regions of the U.S., as well as offer connections to landing sites and exchanges internationally. The combined network will have more than 20,000 route miles and provide access to more than 6,000 on-net locations, including commercial buildings, data centers, financial exchanges, content hubs, and other interconnection facilities.The two companies offer Ethernet, dark fiber, wavelengths, Internet access, private networks, and colocation services, as well as customized offerings such as low-latency connections."This combination is highly complementary," commented Mike Sicoli, CEO of Sidera. "The broad reach and scale of our combined network, the cumulative expertise of our dedicated employees and our shared passion for customer service and satisfaction will set the new company apart and deliver tangible benefits to our customers.""Berkshire is excited to be working with both Lightower and Sidera -- two great companies and two great teams," explained Randy Peeler, managing director of Berkshire. "We have invested in the telecommunications infrastructure space for nearly 20 years and believe that the combined company, with its incredibly robust network, is well positioned for continued growth serving customers with an ever-increasing need for high-performance bandwidth." Berkshire’s previous telecommunications-related investments include Crown Castle International (NYSE: CCI) and The Telx Group.
Xtera enters enterprise market with XteraLink
Xtera Communications Inc., best known for its Raman-based optical transport equipment (see, for example, "Xtera demos 100 Gbps with Raman amplification"), has entered the enterprise space with the XteraLink 300. The unit, now commercially available, is an edge server appliance that sits on the border between enterprise LANs and the Internet (WANs).XteraLink is designed to bond multiple WAN links into virtual pipes to deliver bandwidth aggregation and WAN fault tolerance. The system will support three WAN, a LAN, and a “DMZ” link with a maximum total throughput of 300 Mbps. It also has a USB port for 3G cellular data cards. Other features include a firewall that offers DoS, DDoS, and connection limits; outbound load balancing (auto-routing); NAT; and virtual servers.Xtera is targeting the system at branch offices, home offices, medium size businesses, apartments, hotels, and other multi-tenant buildings.
“Xtera is committed to offer advanced and innovative solutions that will maximize network efficiency,” said Pablo Gargiulo, executive vice president, chief marketing and corporate development officer. “XteraLink will enable advanced, high-performance networks that are secure and dependable 24/7.”
The above information is edited by 10GTEK.
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