In a recent episode of Tower Talks, John Celentano, Business Editor at Inside Towers, sat down with Tyler Coates, Chief Revenue Officer at FiberLight, to discuss the evolving landscape of the fiber optics market. FiberLight, a prominent player in the industry, has been navigating the challenges and opportunities presented by increasing demand for high-speed data and streaming services.
FiberLight’s Reach and Services
Founded over two decades ago, FiberLight has established a substantial presence, particularly in Texas, Atlanta, Northern Virginia, and Tampa. The company operates nearly 20,000 fiber route miles and connects approximately 3,200 buildings. This extensive network supports a variety of services, including dark fiber and lit services, which further break down into colocation, wavelengths, Ethernet, and IP services. Coates emphasized, “We operate dark fiber and services, with various sub-services tailored to meet specific customer needs, including data center and cloud connections.”
Transport Fiber & Target Markets
Unlike fiber-to-the-home services, FiberLight specializes in transport fiber, providing high-capacity connections for large-scale data transmission. This includes significant mobile backhaul operations, linking cell towers to central switching offices and data centers. “Our core business supports large bandwidth transport, essential for our customers’ operations,” Coates noted.
FiberLight serves a diverse clientele, including hyperscalers, large enterprises, wholesale middle-mile backhaul providers, and competitors needing regional fiber support. The company also operates an enterprise team and a channel team to cater to mid-sized businesses and larger channel partners.
Coates discussed the opportunities for organic growth and potential mergers and acquisitions in the fiber optics market. With increasing debt costs and the capital-intensive nature of the business, FiberLight sees potential in acquiring smaller companies with aging sponsors. “We’re patient and looking for businesses that fit our model without overpaying,” he said. Additionally, FiberLight leverages strategic partnerships to expand its network, building long-haul routes and planning for future growth.
Challenges of Network Construction & Maintenance
Building and maintaining a fiber network is complex and requires careful planning, especially in terms of conduit capacity. Coates highlighted the importance of planning for future expansion, noting that available conduit is becoming increasingly valuable. “Planning for future growth involves ensuring we have the conduit capacity to meet high-capacity demands,” he emphasized.
Still, upgrading fiber networks is no small feat. It involves both replacing terminal electronics and, in some cases, the fiber itself. Coates explained that FiberLight’s infrastructure allows for relatively easy upgrades, ensuring the network can handle increased capacity demands.
Maintaining fiber networks involves dealing with various challenges, from accidental cuts by construction activities to ensuring resilience against physical damages. Coates described FiberLight as a construction company, emphasizing the extensive work involved in building and maintaining fiber infrastructure. “We deal with everything from backhoes digging up fiber to road widenings, requiring constant management,” he said.
Impact of AI, Data Demand & Market Dynamics
The rise of AI and increasing data consumption are driving significant growth in the fiber market. Coates described this as a “renaissance” for the industry, with data center demand creating “immense opportunities” for fiber operators.
Coates highlighted the dynamic nature of the fiber market, with numerous companies promoting new or expanded routes. Despite the competitive landscape, FiberLight remains focused on strategic growth and operational excellence. “Those who manage their operations well will see significant opportunities,” he stated.
In closing, Coates expressed optimism about the future of the fiber market, driven by increasing data demands and technological advancements. “We’re excited about the opportunities ahead and welcome conversations with potential partners and customers,” he concluded. He said FiberLight is well-positioned to capitalize on these opportunities through strategic growth, partnerships, and a focus on operational excellence.