Zayo demonstrates E-rate momentum
Wednesday, Apr 04, 2018
More than 20 school districts have selected Zayo Group Holdings, Inc. (NYSE: 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closely with school districts across the nation to deliver high-quality, fiber-based connectivity to replace or upgrade outdated technology.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, please visit: https://www.zayo.com

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