Glossary

  • 4G

    4G is the fourth generation of cellular wireless standards. It is a successor to 3G and 2G standards, with the aim to provide a wide range of data solutions, with rates up to gigabit-speed Internet access for mobile, as well as stationary users

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
  • Adjusted EBITDA

    Adjusted EBITDA is defined as earnings/(loss) from continuing operations before interest, income taxes, depreciation, and amortization (“EBITDA”) adjusted to exclude acquisition or disposal-related transaction costs, losses on extinguishment of debt, stock-based compensation, unrealized foreign currency gains/(losses) on intercompany loans, and non-cash income/(loss) on equity and cost method investments

  • Adjusted EBITDA Associated with Other Revenue

    Adjusted EBITDA Associated with Other Revenue is calculated by subtracting Construction COGS and any other costs directly associated with Other Revenue from Other Revenue

  • Adjusted EBITDA Margin

    Adjusted EBITDA for the period divided by total Revenue for the period

  • ADM

    Add drop multiplexer optronics that allow for lower speed SONET services to be aggregated or multiplexed to higher speed SONET solutions. These components are used to provide SONET-based Bandwidth Infrastructure services over fiber

  • AFFO

    Adjusted funds from operations ("AFFO") is defined as earnings/(loss) from continuing operations before depreciation and amortization, unrealized foreign currency gains/(losses) on intercompany loans, stock-based compensation, acquisition or disposal-related transaction costs, losses on extinguishment of debt, non-cash income/(loss) on equity and cost investments, non-cash monthly amortized revenue, less cash payments related to maintenance capital expenditures

  • Annualized Growth

    Where the annualized growth rate of various financial measures is presented, the percentage growth is calculated as the quarter over quarter growth rate multiplied by four

  • Average Remaining Contract Term

    Where the average remaining contract term is equal to Revenue Under Contract divided by the sum of MRR and MAR on last day of quarter as well as MRR and MAR in the Service Activation Pipeline

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B
  • Backbone

    A major fiber optic network that interconnects smaller networks including regional and metropolitan networks. It is the through-portion of a transmission network, as opposed to spurs which branch off the through-portions

  • Bandwidth Infrastructure

    Lit and dark bandwidth provided over fiber networks. This infrastructure is commonly used for wireless, data, voice, Internet and video traffic between locations. These locations frequently include cellular towers, network-neutral and network specific data centers, carrier hotels, mobile switching centers, CATV head ends and satellite uplink sites, ILEC central offices, and other key buildings that house telecommunications and computer components. Bandwidth Infrastructure solutions that are lit (i.e., provided by using optronics that “light” the fiber) include SONET/digital signal, Ethernet and Wavelength solutions. Bandwidth Infrastructure solutions that are not lit are sold as dark-fiber capacity

  • Billable Colocation Square Feet

    Usable square feet of colocation space available for sale in the Zayo colocation facilities

  • Bookings

    Gross New Sales less Cancellations of Gross New Sales

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C
  • Capacity

    The information carrying ability of a telecommunications service. Below is a list of some common units of capacity for bandwidth and colocation solutions:

    • DS-0: A data communication circuit capable of transmitting at 64 Kbps
    • DS-1: A data communication circuit capable of transmitting at 1.544 Mbps
    • DS-3: A data communication circuit capable of transmitting at 45 Mbps
    • OC-3: A data communication circuit capable of transmitting at 155 Mbps
    • OC-12: A data communication circuit capable of transmitting at 622 Mbps
    • OC-48: A data communication circuit capable of transmitting at 2.5 Gbps
    • OC-192: A data communication circuit capable of transmitting at 10 Gbps

  • Capital Expenditure Pipeline

    Capital expenditure pipeline includes capital projects that are currently committed, but have not yet been spent. Capitalized interest is not included in the capital expenditure pipeline

  • Carrier

    A provider of communications solutions that commonly include voice, data, and Internet

  • Carrier Hotel/Data Center

    A secure physical site or building where data communications media converges and interconnects. The building contains many carriers, IXCs, and other telecommunications providers that widely interconnect. These facilities generally have high-capacity power service, backup batteries and generators, fuel storage, riser cable systems, large cooling capability, and advanced fire suppression systems

  • Carrier Point of Presence

    Carrier point of presence is a location in a carrier’s system where local access facilities connect to an interexchange carrier’s network

  • CATV

    Community antennae television is cable television

  • CATV Head End

    CATV head end is a master facility that receives signals it processes and distributes over a cable television system

  • CDN

    Content distribution network is a system of computers networked together across the Internet that cooperate to deliver various types of content to end users. The delivery process is designed generally for either performance or cost

  • Cell Site

    A site where antennae and electronic communications components are placed on a radio mast or tower to create a cell in a cellular network. A cell site is composed of a tower or other elevated structure for mounting antennae, and one or more sets of transmitter/receiver transceivers, digital signal processors, control electronics, a GPS receiver for timing (for CDMA2000 or IS-95 systems), regular and backup electrical power sources, and sheltering

  • Central Office

    A facility used to house telecommunications components (e.g., switching components), usually operated by the ILECs and CLECs

  • Churn Percentage

    Total MRR and MAR Churn for the quarter divided by Recurring Revenue (MRR and MAR) reported in the quarter

  • Churn Pipeline

    Churn pipeline is the MRR for solutions for which a disconnect or negative re-rate order has been received for a future date and the solution has not yet been re-rated or de-activated and removed from billing

  • Churn Processed

    Any negative change to monthly recurring revenue or monthly amortized revenue. Churn processed is further divided into disconnects, negative price changes, and disconnects associated with upgrades or replacements. Churn processed does not include intercompany churn

  • CLEC

    Competitive local exchange carrier provides local telecommunications solutions in competition with the ILEC

  • Cloud Computing

    An Internet-based or intranet-based computing environment wherein computing resources are distributed across the network (i.e., the “cloud”) and are dynamically allocated on an individual or pooled basis, and are increased or reduced as circumstances warrant, to handle the computing task at hand

  • Colocation ("Colo")

    The housing of transport components, other communications components, servers and storage devices within the same location. Some colocation providers are network-neutral, meaning that they allow the customers who colocate in their facilities to purchase Bandwidth Infrastructure and other telecommunications solutions from third parties. Operators of these colocation facilities sell interconnection to their customers, enabling them to cross connect with other customers located within the same facility and/or with Bandwidth Infrastructure providers. Other colocation facilities are operated by service providers and are network-specific in that they require their customers to purchase Bandwidth Infrastructure and other telecommunications solutions from them

  • Colocation Cabinet Equivalents

    The total number of cabinet equivalents available for sale in the Zayo Colocation facilities. The number is calculated by dividing billable colocation square feet by an assumed cabinet footprint of approximately 25 square feet

  • Colocation Percent Utilization

    Utilized colocation cabinet equivalents divided by colocation cabinet equivalents

  • Conduit

    A pipe, usually made of metal, ceramic or plastic, that protects buried fiber optic cables

  • Constant Currency Growth

    Our constant currency growth metrics present the relevant information assuming a constant exchange rate between the two periods being compared. Such metrics are calculated by applying the currency exchange rates used in the preparation of the prior period financial results to the subsequent period results

  • Contract Value

    MRR and MAR under contract multiplied by the remaining contract term in months. If a service’s remaining contract term is month-to-month, and requires that the customer provide 30 days notice to terminate service, then the contract value is equal to one month’s MRR or MAR. Contract value excludes intercompany revenue. Contract value excludes any MRR or MAR after 20 years

  • Contract Value of Gross New Sales

    MRR and MAR for Gross new sales multiplied by the contract term in months. Contract value excludes renewals and intercompany revenue. Where there is a price increase with a renewal, the contract value will show the incremental MRR from the price increase multiplied by the new contract term in months. Contract value excludes any MRR or MAR after 20 years

  • Customer Specific with Negative Payback Capital

    Speculative capital, where the capital investment will be leveraged on future revenue opportunities. For example, components purchased in support of a customer contract where the term length is shorter than necessary to fully repay the capital expenditure. If the customer does not renew the contract, it is expected that the equipment would be redeployed to support other service revenue. Another example is outside plant expenditures made to extend the fiber network into a new location, where it is expected that future sales will leverage this investment

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D
  • Dark Fiber

    Fiber that has not yet been connected to telecommunications transmission components and therefore has not yet been activated or “lit”

  • Dark Fiber Units

    Dark fiber units are equal to dark fiber miles

  • Data Center

    Businesses that provide data center solutions including space, power, cross connects, and related technical support for themselves and others in standalone or shared facilities that may house other Data Center operators

  • Data Center Operator

    Businesses that own and operate data centers

  • Decreased Scope on Previously Approved Projects

    Capital expenditure reductions due to reduced scope or expense underruns on previously approved capital expenditure commitments associated with net new sales reported in past quarters

  • Disconnects Associated with Replacement Solutions

    A disconnect where an existing solution is replaced by another type of solution, where the old and new solution are related to one another. The replacement solution either has at least one common location with the disconnected service and/or the replacement solution satisfies a remaining contractual commitment associated with the disconnected service. The disconnect associated with a replacement solution is included in churn processed

  • Disconnects Associated with Upgrades

    A disconnect is called an upgrade when one type of existing solution is replaced with another higher bandwidth or higher priced solution, where both solutions have the same location. Typically the solution being replaced was purchased several years ago and has reverted to a month-to-month contract term and the new solution is higher bandwidth and includes an extension of the term. The disconnect associated with an upgrade is included in churn processed

  • DS

    Digital signal level is a measure of the transmission rate of optical telecommunications traffic. For example: DS-1 corresponds to 1.544 Mbps and DS-3 corresponds to 45 Mbps. See the prior definition of “Capacity”

  • DWDM

    Dense wavelength-division multiplexing. The term “dense” refers to the number of channels being multiplexed. A DWDM system typically has the capability to multiplex greater than 16 wavelengths

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E
  • Embedded Base Revenue Under Contract

    Contract value for all actively billing solutions. Embedded Base Revenue Under Contract does not include intercompany or amortized revenue

  • Employee Related SG&A

    Employee Related SG&A includes wages, salaries, bonuses, employee commissions and related taxes, benefits, travel and entertainment, cell phone, training, and recruitment costs. Employee related SG&A includes an adjustment to add back Capitalized Labor costs

  • Ethernet

    Ethernet is the standard local area network (LAN) protocol. Ethernet was originally specified to connect devices on a company or home network as well as to a cable modem or DSL modem for Internet access. Due to its ubiquity in the LAN, Ethernet has become a popular transmission protocol in metropolitan, regional, and long haul networks as well

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F
  • Fiber Miles

    Fiber miles are the number of route miles in a network multiplied by the number of fiber strands within each cable on the network. For example, if a ten mile network segment has a 24 count fiber installed, it would represent 10x24 or 240 fiber miles

  • Fiber Optics

    Fiber, or fiber optic cables, are thin filaments of glass through which light beams are transmitted over long distances

  • FTT (Fiber-to-the-Tower)

    FTT are projects that connect cell sites to the wider terrestrial network via fiber optic connections

  • FTT Market

    FTT market is a distinct geographic area served by a Zayo FTT location

  • FTT Tenant

    Service provided to a unique customer cabinet/shelter location at a tower

  • FTT Tower

    FTT tower is a specific cell site served with fiber by the Company

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G
  • Gbps

    Gigabits per second is a measure of telecommunications transmission speed. One gigabit equals 1 billion bits of information

  • Government Stimulus Capital

    Government stimulus capital is speculative capital in support of a government stimulus project where the government provides a grant that offsets a portion of the total project cost

  • Gross Installed Revenue

    Gross Installed Revenue is the amount of MRR and MAR for solutions that have been installed, tested, accepted by the customer, and entered into the billing system in a given period. Gross Installed Revenue is further divided into new solution, price increases, and upgrades. Gross installed revenue does not include intercompany installs

  • Gross New Sales

    The dollar amount of MRR and MAR orders in a period that have been signed by the customer and accepted by solution activation. The dollar value of a Gross New Sale is equal to the monthly recurring price that the customer will pay for the solution or the monthly amortized amount of the revenue that the Company recognizes for that solution. Gross new sales does not include intercompany sales

  • Growth Capital

    Capital expenditures related to obtaining new revenue. Growth capital is further stratified into success based capital and infrastructure capital

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H
  • Hard Disconnects

    Hard disconnects is churn processed where a solution is disconnected without an associated replacement solution

  • HDTV

    High-definition television

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I
  • ILEC

    Incumbent local exchange carrier is a traditional telecommunications provider that, prior to the Telecommunications Act of 1996, had the exclusive right and responsibility for providing local telecommunications solutions in its local area

  • Increased Scope on previously Approved Projects

    Capital expenditures to support increased scope or expense overruns on previously approved capital expenditure commitments associated with net new sales reported in past quarters

  • Infrastructure Capital

    Growth capital related to obtaining new revenue, but associated with general network capacity and not directly related with new sales (bookings)

  • Integration Capital

    Capital expenditures related to projects resulting from integrating Zayo’s network with the networks of acquired properties

  • Interconnection Service

    A solution that is used to connect two customers who are located within a single building or within a single colocation space using either fiber or other means

  • Invested Capital

    Invested capital is the amount of debt and equity deployed in the business. Equity is calculated based on the amount of member’s interest and excludes any accumulated loss or earnings. Debt is calculated on a net of cash basis and includes long term debt and capital lease obligations

  • Invested Capital Ratio

    The ratio of invested capital divided by the annualized Adjusted EBITDA of the most recent quarter

  • IP

    Internet protocol is the protocol used in the transmission of data over the Internet

  • ISP

    Internet service provider provides access to the Internet for consumers and businesses

  • IXC

    Inter-exchange carrier is a telecommunications company that traditionally provided telecommunications between local voice exchanges and intrastate or interstate (i.e., long distance) voice exchanges. Today, IXCs frequently provide additional solutions to their customers beyond voice including data and wireless Internet

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L
  • Lateral/Spur

    An extension from the main or core portion of a network to a customer’s premises or other connection point

  • Levered Free Cash Flow

    Net cash provided by operating activities for the period minus capital expenditures for the period

  • Local Loop

    A circuit that connects an end customer premise to a metropolitan network, regional network, or backbone network

  • Local Serving Office

    Local serving office is the NPA/NXX of the local or alternate serving central office of the customer location or primary location of the end user

  • LTE Network

    Long-term evolution network can be used to provide 4G cellular networks that are capable of providing high speed (greater than 100 Mbps) cellular data solutions

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M
  • Maintenance Capital

    Capital expenditures related to preserving the existing network and embedded base of business

  • Market

    A distinct geographic area served by Zayo’s fiber with add/drop capabilities

  • Mbps

    A measure of telecommunications transmission speed. One megabit equals one million bits of information

  • Meet-Me Room

    A physical location in a building, usually a data center or carrier hotel, where voice carriers, Internet providers, data providers, and others physically interconnect so that traffic can be passed between their respective networks. At any given colocation facility or data center, network owners may also be able to interconnect outside the Meet-Me Room

  • Mobile Switching Centers

    Buildings where wireless providers house their Internet routers and voice switching components

  • Monthly Amortized Revenue (MAR)

    Revenue related to the amortized portion of install charges and IRUs. MAR does not include intercompany revenue or revenue from accounts that are believed to be uncollectible

  • Monthly Recurring Revenue (MRR)

    Revenue related to an ongoing service that is generally fixed in price. MRR does not include intercompany revenue or revenue from accounts that are believed to be uncollectible

  • MPLS

    Multi-protocol label switching is a standards-based technology for speeding up data provided over a network and making those data solutions easier to manage

  • Multiplexing

    An electronic or optical process that combines a large number of lower speed transmissions into one higher speed transmission

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N
  • Negative Price Change

    Churn processed from existing solutions where the price was decreased. The incremental price change is counted in churn processed

  • Net AFFO

    AFFO plus upfront customer payments from less than twelve month payback on net new sales less cash payments related to capital expenditures for (i) less than twelve month payback on net new sales and (ii) network capacity

  • Net Capital

    Capital Expenditures for the period less additions to deferred revenue in the period

  • Net Install Pipeline

    Net install pipeline is the sum of the MRR and MAR for orders in the activation pipeline and the churn pipeline

  • Net Installed Monthly Recurring Revenue

    The net change to MRR and MAR, equal to gross installed revenue less churn processed

  • Net New Sales (Bookings)

    Gross New Sales less Cancellations of Gross New Sales

  • Network Capacity Capital

    Growth capital expenditures in support of capacity growth requirements on Zayo’s existing network backbone, not directly associated with specific customer sales

  • New Solution

    Gross installed revenue from new solutions

  • NOC

    Network operations center is a location that is used to monitor networks, troubleshoot network degradations and outages, and ensure network outages and other network degradations are restored

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O
  • OC

    Optical carrier level is a measure of the transmission rate of optical telecommunications traffic. For example: OC-3 corresponds to 155 Mbps. See the definition of “Capacity”

  • On-net building

    A building on Zayo’s network with a fiber connection to someone other than the local ILEC

  • Opportunistic Network Expansions Capital

    Speculative capital expenditures to support a network expansion in anticipation of future new sales (bookings)

  • Optronics

    Various components that are commonly used to light fiber. Optronics include systems that are capable of providing SONET, Ethernet, Wavelengths, and other solution over fiber optic cable

  • Other Capital

    Capital expenditures not directly related to Zayo’s network. Other capital includes IT, furniture and fixtures, and other miscellaneous capital expenditures

  • Other Revenue

    Other Revenue includes Credits and Adjustments; Termination Revenue; Construction Revenue; and Asset Sales (if any)

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P
  • Payback Period

    The period of time (measured in months) in which the gross profit for a gross new sale is equivalent to the estimated capital expenditures and non-recurring network expense less non-recurring revenue related to that Gross New Sale. The payback period is an approximation of the return on a gross new sale and does not include sales costs, allocation of indirect operating expenses, depreciation and amortization, or any cost of capital

  • POP

    Point-of-presence is a location in a building separate from colocation facilities and data centers that houses components used to provide telecom or Bandwidth Infrastructure

  • PRI

    Primary rate interface is a standardized telecommunications service level for carrying multiple DS-0 voice and data transmissions between a network and a user

  • Price Decrease

    Churn processed from existing solutions where the price was decreased

  • Price Decrease as a Percentage of Affected MRR/MAR

    The percentage change between the old price and the new price, calculated by dividing the incremental negative price change by the old price

  • Price Increase

    Price increase is the gross installed revenue from existing solutions where the price was increased

  • Price Increase as a Percentage of Affected MRR/MAR

    The percentage change between the old price and the new price, calculated by dividing the incremental positive price change by the old price

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Q
  • Quota Bearing Headcount (QBHC)

    Quota bearing headcount is an employee who is responsible for selling a target amount of new sales (bookings) per month

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R
  • Renewal

    A renewal is an event where the contract is extended and the price does not change

  • Replacement Solutions

    An existing solution is replaced by another type of solution, where the old and new solution are related to one another. The replacement solution either has at least one common location with the disconnected solution and/or the replacement solution satisfies a remaining contractual commitment associated with the disconnected solution

  • Revenue Commitment

    MRR related to contractual obligations that customers have made to increase their purchased solutions on or prior to a future date or to maintain certain billing levels after the end of the initial contract term. Most Revenue Commitments are related to FTT and represent contractual obligations. Often, the customer has flexibility on the specific solution and location which will satisfy the commitment

  • Revenue Under Contract

    The total contract value for all existing and committed solutions. Revenue under contract is further stratified into contract value associated with the embedded base, activation pipeline, and revenue commitments. Revenue under contract excludes intercompany revenue and amortization of deferred revenue

  • RLEC

    Rural local exchange carrier is an ILEC that serves rural areas

  • Route miles

    Route miles are the length, measured in non-overlapping miles, of a fiber network. Route miles are distinct from fiber miles, which is the number of route miles in a network multiplied by the number of fiber strands within each cable on the network

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S
  • Service Activation Pipeline

    The MRR and MAR associated with cumulative net new sales that have not yet become gross installed revenue (have not been activated or installed). Activation pipeline does not include intercompany sales

  • Service Orders

    The MRR and MAR for signed customer orders for specifically defined solutions that are scheduled to be installed and billed on a future date. In the case of revenue commitments, when the solution is specifically defined, it is reclassified from the revenue commitment category to the order category

  • SONET

    Synchronous optical network is a network protocol traditionally used to support SONET/digital signal solutions. This protocol enables transmission of voice, data, and video at high speeds. Protected SONET networks provide for virtually instantaneous restoration in the event of a fiber cut or equipment failure

  • SONET/Digital Signal

    Dedicated private bandwidth that generally utilizes SONET technology and is used to connect various locations

  • Speculative Capital

    Growth capital expenditures associated with selective network extensions or geographic expansions in anticipation of better positioning Zayo for future sales. In some cases an initial sale may help offset the expenditure. Speculative projects are further stratified to include opportunistic network expansions, increased/decreased scope on previously approved projects, and customer specific (success based) with negative payback periods

  • Streaming

    The delivery of media, such as movies and live video feeds, over a network in real time

  • Success Based Capital

    Capital expenditures directly related to the acquisition of new sales (bookings) and includes projects that are stratified into <12 month payback projects, >12 month payback projects, and a subset of speculative projects

  • Switch

    A switch is an electronic component that selects the path that voice, data, and Internet traffic take or use on a network

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T
  • Transport

    Movement of data, Internet, voice, video, or wireless traffic from one location to another

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U
  • Unit

    Unit is a distinct service sold independent of the type of solution (including capacity, location, etc.) Reported units do not include Fiber Miles

  • Upgrade

    Upgrades are gross installed revenue from existing solutions where one type of solution is replaced with another higher bandwidth/typically higher priced solution, where both solutions have the same location. Typically the solution being replaced was purchased several years ago and has reverted to a month-to-month contract, and the new solution is higher bandwidth and includes an extension of the term

  • Utilized Colocation Cabinet Equivalents

    Utilized colocation cabinet equivalents are the total number of occupied cabinet equivalents available in the Zayo Colocation facilities. The number is calculated by dividing the total occupied colocation space by an assumed cabinet footprint of 25 square feet

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V
  • VPN

    Virtual private network is a computer network that is implemented as an overlay on top of an existing larger network

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W
  • Wavelength

    A channel of light that carries telecommunications traffic through the process of wavelength division multiplexing

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Z
  • Zayo Hut

    A remote regeneration facility

  • Zayo Point of Presence

    An access or demarcation point or interface point between communications entities

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