Dear Curtis,
Good question. Subtle differences. An IRU is basically an "ownership" interest, although the distinctions between it and a long-term lease are lost in the arcanae of lawyers' definitions of rights in cases of insolvency, etc. Call it what you will, it's a right to use the fiber (or capacity) for 20 years. After that, we have to find something else to replace it.
Actual ownership of the fiber allows us not only to go beyond 20 years in term, but allows us to put on the fiber new equipment from time to time, to increase the transmission capacity of the fiber. DWDM and other technologies are constantly being improved. So, it's better to own "dark" fiber, light it with your own equipment, and go for increased performance, IF you (i) have the money, and (ii) expect to be in the business long-term.
The markets for this stuff have evolved. When we did the original IRU deal with IXC, we were the first ISP anywhere to do so. We wanted dark fiber, but couldn't get it. Now, we can, so we do.
Regards,
Dave Kunkel |
