As it searches for greater revenue growth this year, Zayo is hoping to demonstrate success over a wide range of infrastructure opportunities. Earlier this week they announced a key wireless backhaul deal, but yesterday afternoon it was all about E-Rate.
During the first quarter of this calendar year, Zayo says it has doubled last year’s rate of E-Rate recurring revenue via demand for both dark and lit solutions from 20 school districts across the country. They offered a few details on two of those project.
In a ‘a major Texas market’, they will connects some 81 sites by leveraging 300 route miles of existing network, 85 more that is already on the way for tower backhaul, and 580 new route miles will be constructed. Meanwhile, in a ‘arge city in California’ they will hook up 28 sites via 15 miles of existing network and 30 more they will be building.
Zayo says the E-Rate success is a key component of first quarter calendar bookings that will exceed $9.0M and beat the company’s current goal. Of course it will take a bit longer to reach the revenue line, but such is the nature of things in this sector.
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