Cbeyond Chasing Ethernet

Cbeyond has some interesting numbers in 2011. Churn is 1.3% in 2011 and 2012. Revenue is just under $500M annually. 62,465 customers in May 2012 up 6.7% from last year.

Cbeyond’s Customer Profile

• $668 monthly ARPU in 2011, now $642 a year later
• 8 voice lines
• 14 employees
• 7.7 applications
• 3 year contract
• No telecom/IT dept.
• 70% previously used the ILEC for voice
• chasing the 5 to 249 employee market

Voice/Internet is to get them in the door, then its upsell them: SAAS, security, apps, MVNO cellular like 4G.

"Cbeyond is looking to light 1,000 buildings and bring Metro Ethernet to 50% of their cstomer base by the end of next year." Since early 2011, CBEY has been busy replacing T‐1 access with Ethernet-over‐copper circuits for customers. With $27 million invested in EoC gear. The reason: EoC reduces Cbeyond’s operating expenses (OPEX) and increases available bandwidth to the customer.

Now CBEY has "executed construction contracts with Zayo and FiberLight and placed orders for dark fiber network assets to connect more than 700 buildings," according to the pr.

So Cbeyond is moving to Ethernet for more bandwidth and more savings. Lighting buildings with fiber. Upselling customers on services beyond Voice/Internet.