Zayo: Everyone wants to go to Sacramento (or Salt Lake City)

Fiber-optic network services provider Zayo Group Holdings, Inc. (NYSE: ZAYO) says it has landed 12 follow-on customers for its route between Sacramento and Salt Lake City. The sales include three long-haul dark fiber and nine wavelengths customers.

The customers include what Zayo termed "major carriers" as well as internet and content companies. The combined sales have generated a cash flow yield of approximately 29%.

Zayo launched construction on the route in early 2015 after securing an anchor tenant, which the company has not identified (see "Zayo to buy colo provider Latisys, expand western dark fiber network"). The 970-mile route was completed on schedule in the fourth quarter 2015 and approximately 25% under budget, Zayo says.

Alongside other elements of Zayo's long-haul infrastructure, the Sacramento to Salt Lake City route is designed to provide diverse connectivity for enterprise, carrier, cable, and content companies between major West Coast data center markets such as Los Angeles, Seattle, and The Bay Area to the rest of the country. Zayo offers dark fiber, wavelengths, Ethernet, and IP transport on the link.

"This route is generating significant customer momentum, especially with west coast content customers," said Dave Jones, executive vice president of dark fiber solutions at Zayo. "It's a unique route, which provides critical diversity. Zayo now provides four diverse paths from the west coast to Chicago, with access to our global network and infrastructure."

Zayo says its long-haul dark fiber network spans approximately 30,000 route miles across North America and Europe.

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