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Lightpath Fiber Lights 7,000 NY Buildings

Alan Breznick
4/17/2014
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Even as its revenue growth has slowed down, Lightpath is continuing to add new commercial buildings to its all-fiber network at a record pace.

Lightpath , the dedicated business services arm of Cablevision Systems Corp. (NYSE: CVC), announced Wednesday that it has now lit up 7,000 commercial locations in the greater New York metro region. That represents a jump of more than 1,000 buildings in the past year. (See Lightpath Announces 7,000 Lit Locations.)

Lightpath -- whose network spans more than 5,800 fiber route miles throughout New York, Long Island, Westchester, southern Connecticut, and northern and central New Jersey -- said nearly half of the latest additions came in New Jersey. The Cablevision unit has been focusing heavily on that region over the last couple of years after saturating most of the rest of its territory.

Lightpath continues "to see considerable opportunity" in New Jersey, Julia McGrath, SVP and chief strategy officer, told Light Reading. This is "especially true given how underserved mid-market businesses are in this region. In many cases, when we expand into a new region, we are the first fiber providers to do so, opening a world of opportunity for businesses," she said.

Lightpath is particularly making inroads among middle-market firms spending between $1,500 and $30,000 a month on telecom and Internet services, McGrath said. The division concentrates on middle-market and larger firms spending at least $1,500 a month on telecom and Internet services, leaving smaller firms to another Cablevision unit.

In addition, McGrath said Lightpath is pursuing multi-tenant locations, "where there is opportunity to connect several customers." While the number of firms per location may vary, she said the unit "pays closest attention to buildings with tenants that look like existing Lightpath customers."

The latest Lightpath network expansion comes as more mid-sized firms, following the lead of larger enterprises, are seeking support for cloud-based services and applications, employee mobile devices, videoconferencing services, and other bandwidth-intensive applications. Lightpath executives say they are especially seeing this growing demand for more sophisticated services from the professional services market, including engineering, accounting, finance, insurance, real estate, and law firms.

The latest expansion wave also comes as Lightpath officials continue to seek ways to re-stoke the unit's revenue and income growth after several nearly flat quarters. In its latest earnings statement, Cablevision reported an uptick for Lightpath in the fourth quarter of 2013, with revenues rising almost 4% to $85 million and operating income more than doubling to $13.5 million on a year-over-year basis. The MSO credited the stronger gains to increases in Ethernet services revenues and a higher overall gross margin. (See Cablevision Bounces Back.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

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tmc8080
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tmc8080,
User Rank: Lightning
4/22/2014 | 5:56:41 AM
Re: Small businesses
Maybe when they first started they took on accounts below $1k but they found it cheaper to offload backhaul to the cable network and not run fiber direct.
tmc8080
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tmc8080,
User Rank: Lightning
4/18/2014 | 10:58:05 AM
Re: Small businesses
Cablevision should go after the Time Warner, Comcast and Verizon markets.. apparently you dont' need a franchise to encroach fiber lines across (some parts of) the NY metro area.. just for residential customers. Each of those three should stop taking business customers for granted.
majortom1981
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majortom1981,
User Rank: Lightning
4/18/2014 | 8:08:05 AM
Re: Small businesses
Optimum business also caters to the small business.

 

Lightpath is making huge gains ebcause of sideras and now lighttowers mismanagement. We were a long island fiber customer. then sidera brought long island fiber. Our connection was always going down. then lighttower brought out sidera and our connection is even worse now. We are currently switching over to lightpath. I would bet a lot of former long island fiber , sidera,and lighttower customers are switching.

 

heck lighttower didnt even reduce our bill when we asked them. after we told them we are switching is when they offered us a price reduction.
Ariella
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Ariella,
User Rank: Light Sabre
4/17/2014 | 6:16:39 PM
Re: Small businesses
< McGrath said Lightpath is pursuing multi-tenant locations, "where there is opportunity to connect several customers."> wouldn't this be likely for any building that is not just a single office or home?  Or is there some other aspect to targeting multiples?
DOShea
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DOShea,
User Rank: Blogger
4/17/2014 | 4:30:38 PM
Small businesses
I was under the impression that Lightpath also served the small businesses, in addition to the mid-sized. Do you know what the other Cablevision unit is that caters to small business?
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