BOULDER, Colo.–(BUSINESS WIRE)–
More than 20 school districts have selected Zayo Group Holdings, Inc. (ZAYO) for E-Rate solutions during the first calendar quarter of 2018. The contracts represent approximately double the E-Rate recurring revenue that Zayo was awarded during calendar year 2017 and demonstrate Zayo’s heightened focus on the public, health and utilities segment, which includes K-12 schools.
The contracts include a range of dark fiber and lit fiber-based connectivity solutions to provide schools and libraries with high-speed connectivity. The majority leverage existing Zayo network, much of which was deployed for Mobile Infrastructure projects. These projects also include network expansion, which in turn will be leveraged for other projects, including small cell deployments. Many schools are opting for Private Dedicated Networks (PDNs), which are fully managed solutions that include dark fiber, equipment and network operational support. The districts are funding the upgrades through E-Rate, a federal program that subsidizes internet infrastructure for schools and libraries.
Traditionally, many school districts and charter campuses have relied on legacy copper networks, wireless or other patchwork solutions. With the widespread use of digital textbooks, streaming media and online testing, high-speed connectivity has become fundamental to K-12 education. Zayo works closely with school districts across the nation to deliver high-quality, fiber-based connectivity to replace or upgrade outdated technology.
“This momentum is a result of our vertical segment and sales channel strategy, which enables dedicated focus on the education community,” said Andrew Crouch, president and COO at Zayo. “Our Fiber Solutions regions were integral as well, as they matched their local understanding of Zayo existing and under-construction fiber with the requirements of the school district networks.”
Two of the largest are Texas and California projects.
In a major metropolitan area in Texas, an education region selected Zayo for a PDN and IP solution to connect 81 sites. The solution will leverage nearly 300 route miles of existing network and 85 route miles of planned fiber-to-the-tower (FTT) network. Approximately 580 route miles will be constructed.
In a large city in California, Zayo will provide a school district with dark fiber to connect 28 sites, which will leverage 15 route miles of existing network and include 30 route miles of new build.
“These E-Rate awards, coupled with the previously announced FTT contract and good overall sales performance, contributed to first calendar quarter net bookings that exceed our $8.5M goal by a healthy margin,” added Crouch.
Zayo anticipates first calendar quarter bookings will exceed $9.0M.
Given the nature of the E-Rate award cycle, these awards represent most of the E-Rate bookings that Zayo is likely to be awarded in calendar year 2018, though additional bookings are anticipated in second calendar quarter. Last year, most of the E-Rate awards occurred in the second calendar quarter.
For more information about Zayo, visit zayo.com.
About Zayo Group
Zayo Group Holdings, Inc. (ZAYO) provides communications infrastructure solutions, including fiber and bandwidth connectivity, colocation and cloud infrastructure to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 127,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud infrastructure in its carrier-neutral data centers. Zayo provides users with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth. For more information, visit zayo.com.
Forward Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words such as “believe,” “expect,” “plan,” “continue,” “will,” “should,” and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our 10-K dated August 22, 2017. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
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