January 23, 2014
Allstream Connects 3k Buildings to Its Fiber-Optic IP Network
By Anshu Shrivastava
Canada-based Allstream, an all-business communications provider, said that it has connected over 3,000 buildings to its 30,000+ kilometre nationwide fiber-optic IP network.
The company has seen a 50 percent increase in the number of buildings on its network, which makes it a significant competitor to Bell and Telus in Canada, serving the business market.
The 30,000+ kilometre fiber-optic network integrates advanced IP connectivity, digital switching and Ethernet-based services. It also includes the latest Internet security technologies and services, including right-of-way access in major Canadian city centres and nine cross-border connections to the U.S.
Calling the national IP fiber network one of the company’s many strengths and a competitive differentiator, Mike Strople, president at Allstream, said that the more multi-tenant buildings the company is able to connect to its network, the more high-margin, on-net revenue it can generate.
More than a couple of years ago, the company sought to increase its profitability by expanding its IP fiber network to the nearby multi-tenant buildings. To support its aim, Allstream began a targeted multi-year investment program in the year 2010.
Capital spending is key to the company’s expansion program. Company officials said that they have adopted a disciplined approach, which makes them undertake the expansion into new buildings on a “success” basis, servicing a contracted customer.
Meanwhile, Allstream’s IP network has cut down the dependence on incumbent networks. Company officials said that they are able to offer excellent end-to-end customer service. Plus operating costs have come down and now they can provide incremental higher-margin revenue opportunities.
“Allstream has achieved significant improvements in gross margin and our plan to drive growth in on-net revenues by expanding our network reach has been a big part of that,” Strople said.
This year, the company intends to continue making strategic investments, expanding Allstream's network reach. Strople said that they will sign up more customers in the existing buildings.
Edited by Alisen Downey
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