Recently, Frost and Sullivan announced TW Telecom as the 2011 winner of the North American Frost and Sullivan Award for Growth and Leadership. This win comes directly on the heels of Frost and Sullivan’s market share analysis that ranked TW Telecom third place behind AT&T and Verizon in the Ethernet service arena thanks to the provider’s “bullish movement.”
Frost and Sullivan research analyst, Roopa Shree, added that while most – if not all – telecom service providers are beefing up their service portfolios, network footprints and service level agreements in order to make the most of the increasing market demand, “TW Telecom has long been the key challenger to the top two CSPs [communications service providers] in the market with its fiber-based services strategy.”
Between 2008 and 2010, when most companies were scaling back on their telecommunications service expenses, TW Telecom managed to grow their Ethernet services revenue at an impressive CAGR of 28%. As of today, the provider has built out fiber to 14,000 buildings using fiber-based Ethernet as its chief building block, targeting mid-sized companies that service government, education, and health care.
However, even with TW Telecom’s assertive fiber-centric push, no single telecom provider is capable of reaching every business alone. Consequently, TW Telecom continues to roll out nationwide E-line networks so as to tackle the market for long haul Ethernet, and accompanied its own fiber footprint with External Network to Network Interconnection agreements with additional carrier partners. TW Telecom also has allied its Ethernet and MPLS services to permit customers to construct hybrid network solutions.
The provider’s two-pronged sales strategy of indirect and direct channels complements each of the new service improvements. TW Telecom is now able to amplify the sales of its IP and data services all through its nationwide network footprint by leveraging indirect channels. In regards to the direct side of sales, sales engineers and account executives make decisions on the local level to disperse decision making, and to provide business-class customers with local engineering and planning proficiency to build out metro and Wide Area Networks (WANs).
During TW Telecom’s second quarter earnings report this year, Internet and data revenue grew just under 4% consecutively, and just under 18% year-over-year – that aspect was motivated by an almost 30% year-over-year growth in VPN and Ethernet-based products.