Verizon, XO Give FCC Building Data, Cite Little Overlap, Remaining Competitors
Only 691 of the 4,487 buildings served by XO Communications that Verizon would gain new access to will be in the Bell's remaining ILEC footprint (after it completes a three-state system sale to Frontier Communications), the companies told the FCC…
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Tuesday, supplementing their application to transfer XO licenses to Verizon (see 1603070041). "The proposed transaction will benefit the public interest without any material adverse harm to customers or competition," they said in a filing responding to questions from commission staff. Of the 691 buildings, 537 are served by at least one other CLEC or cable company, based on available information, they said, noting there could be other buildings served by telco and cable competitors whose information isn't readily available. Of the 154 other XO on-net buildings in Verizon's remaining ILEC footprint, 136 are within one-tenth of a mile of the fiber of another CLEC or a cable-lit building, they said, noting other providers include Cablevision, Cogent, Comcast, Level 3 and Zayo. Almost 85 percent of the XO on-net buildings aren't in Verizon's remaining ILEC footprint, and of those 3,796 buildings, 3,303 don't have Verizon plant in them, the companies said. Of the 493 with Verizon plant, 440 are lit by another CLEC or cable company and 41 are within one-tenth of a mile of another CLEC's fiber, they said. Frost and Sullivan analysts estimated Verizon's national market share of the business/enterprise ethernet market declined from 22.5 percent in 2013 to 19.6 percent in 2014, while XO's market share was "between 0.5 and 2 percent," the companies said. Frost and Sullivan estimated Verizon has about 28.3 percent of the wholesale ethernet market and XO has about 3.9 percent. They said XO Holdings' subsidiary NextLink Wireless isn't being transferred with XO Communications to Verizon and will remain an independent wireless-based provider.