U.S. Markets closed

Windstream (WIN) Boosts Ties with Cologix, Builds New PoPs

Zacks Equity Research

Leading local exchange carrier in the U.S., Windstream Holdings Inc. WIN, is strengthening its existing association with Cologix, a network neutral interconnection and data center company, headquartered in Denver, Colorado. Windstream is planning to strengthen the tie-up through the construction of a new colocation point of presence (PoP) in Dallas, Texas and Columbus, OH in Oct 2016. Notably, both these PoPs are to be operated by Cologix.

What is PoP?

PoPis an artificial point of separation between two or more networks or communication entities that help other devices to connect with the Internet. PoP is generally present at an Internet service provider (ISP) or telecommunication service provider. It is typically located in a data centre and consists of routers, switches, servers and other data communication devices. ISPs typically have multiple PoPs.

Deal Expansion

The construction of PoPs is an add-on to Windstream’s business set-up in Cologix’s Minneapolis and Jacksonville data centers. It also aligns with Windstream’s continued aggressive Data Center Interconnect (DCI) efforts and increases the carrier neutral data centers to its network and facilitates its customers with more options to access cloud resources. Notably, the extension of these sites makes Windstream’s robust fiber network – the sixth largest network in the nation - available to Cologix customers. Such an access delivers multiple routing options to Windstream to protect their business critical services supported from the Meet-Me-Rooms of Cologix’s impressive network data centers. The partnership also allows Cologix customers in all four locations – Dallas, Jacksonville, Columbus and Minneapolis –  to tap into Windstream’s expansive fiber network.

Recent Developments

Windstream has sought permission from the U.S. telecom regulator Federal Communications Commission (FCC) to discontinue its operator assisted legacy voice services across its ILEC (incumbent local exchange carrier) and CLEC (competitive local exchange carrier) territories. Telecom service providers are moving toward IP-based network as an increasing number of enterprise customers are opting for IP-enabled cloud services. Apart from Windstream, national telecom carriers like AT&T Inc. T and Verizon Communications Inc. VZ are on the same path.

Windstream also aims to deliver broadband speeds of up to 1 gigabit per second (Gbps) with the help of the merged Calix Inc.’s CALX E3-16F G.fast sealed DPU nodes and GigaFamily products.



 Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CALIX INC (CALX): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
WINDSTREAM HLDG (WIN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research