Wholesale/transport services

Netrality Launches New US Carrier Hotels

Allied Fiber CEO Hunter Newby and his longtime joint venture partner Amerimar Enterprises, Inc. are today announcing a new carrier hotel venture, Netrality Properties, which hopes to compete in the interconnection world by not charging monthly recurring interconnection fees. (See Amerimar, Newby Launch Netrality, New Carrier Hotel Firm.)

Newby, a well-known figure in the competitive carrier space as Allied Fiber LLC 's founder, began his career at Telx, still a leading carrier hotel company. Outspoken on many topics, Newby has long advocated carrier interconnection without monthly recurring fees. Netrality currently operates four carrier hotel sites, but has aggressive expansion plans, according to CEO Jerry Marshall. The four existing properties include 325 Hudson Street in New York, owned through a joint venture with Jamestown, LP; 401 North Broad Street in Philadelphia; 1102 Grand in Kansas City; and 717 South Wells in Chicago.

The facilities include colocation facilities and a meet-me room for interconnection. Network operators pay for the space and power of the colocation and for a home-run connection to the meet-me room, as well as rack space there and a one-time interconnection charge, but do not pay recurring interconnection fees once that is established.

Get the bigger picture on wholesale services in the wholesale/transport section of our services channel here on Light Reading.

Affordability and stability will be key competitive factors for Netrality, Marshall tells Light Reading in an interview. Network operators looking for carrier hotel facilities as points of presence, peering and interconnection points can look to a long-term direct relationship with the facility owner, he notes. Network operators have been affected in recent years by conversion of some interconnection facilities for other uses when the buildings were sold, forcing them to make other plans. By owning the buildings and the colocation/meet-me facilities, Netrality will enable more efficient long-term planning.

Netrality is in business for the long term, he notes, and is aggressively building out its footprint in both Tier 1 and Tier 2 markets with the expectation of hitting more than 3 million total square feet of carrier hotel space in the first quarter of 2015.

— Carol Wilson, Editor-at-Large, Light Reading

cnwedit 1/20/2015 | 5:23:51 PM
Re: Location, Location This is an area of substantial growth so I wouldn't be surprised to see them take off. 
kq4ym 1/19/2015 | 9:45:44 AM
Location, Location By owning the building it would seem that might be a way to economize. But, even without interconnction fees, will the scheme prove to be benficial overall to the customers? It will be interesting to see how Netrality can succeed and how long it may take to bring in a good return on the substantial investment.
Sign In