Verizon’s (NYSE: VZ) newly announced $1.8 billion acquisition of XO Communication’s fiber network may be taking out another fiber competitor, but since the telco still uses fiber from other suppliers like Level 3 Communications and Zayo Group there are plenty of opportunities for other players to compete for their business, a Wells Fargo analyst says.
By purchasing XO’s fiber network assets, Verizon will gain a set of metro networks in 40 major U.S. markets with over 4,000 on-net buildings and 1.2 million fiber miles. The service provider’s intercity network also spans 20,000 route miles connecting 85 cities.
