Ubiquitous UFO Takes Off!
UFO Communications, Inc. (“UFO”), a facilities based provider of broadband services that has access to 10 of the largest and most ubiquitous Metropolitan Optical Networks (MON) in the United States, is raising $30 to $40 million to upgrade seven of its optical rings after the successful launch of its services in San Francisco, Los Angeles and Chicago. Founded in January 2000, UFO addresses the growing demand for last mile broadband connectivity by delivering Unlimited Fiber Optics capability for businesses and institutions in the $25 billion metro data-access market.
The rapid migration of businesses towards net-centric solutions combined with the inefficiencies of obsolete infrastructure is driving an enormous demand for high-speed fiber optic connectivity in metropolitan areas. Addressing this demand, UFO established the world’s first OC-192 Metropolitan Optical Network in the Bay Area, in April 2001, with over 31,000 linear miles of fiber and 10,000 splice points. In comparison, most competing MON footprints have fewer than 20 splice points in any given metro region.
UFO acquires its substantial network footprints by upgrading existing fiber assets. This allows the Company rapid penetration of new markets at a significant cost advantage that equates to 10% of what competitors pay to build new networks with less pervasive footprints.
Due to a combination of regulatory advantages related to Public Utility Easements and Rights of Way, and the ubiquitous nature of the Company’s networks, UFO can provision last mile fiber to the customer in 30 to 60 days. This is an impressive turn around considering the industry average is 120 to 160 days. As CEO Charles Shoenhoeft points out, “Proximity is key. Just a fiber ring is not enough. A metro ring is like a freeway with no off ramps. UFO delivers a multi-lane freeway with a huge number of off-ramps which get our solutions directly to the customer’s building in a minimum of time.”
These competitive advantages, combined with flexible network architecture have enabled UFO to secure a number of large enterprise contracts that include: Cisco Systems, UC Berkeley, Competisys, British Telecom Broadcasting and AT&T among others.
Remarking on UFO’s rapid success, Kline Hawkes Partner and UFO board member Jay Ferguson noted, “with its substantial network footprints, advantageous cost structure and last mile provisioning abilities, UFO has positioned itself to become the preferred provider in the exploding MON services market.”
The current Series B financing will fully fund UFO’s business plan and complete the OC-192 upgrades of the Company’s other initial markets: Seattle, Dallas, Boston, Atlanta, Miami, Denver and Minneapolis. Previous UFO investors include: Kline Hawkes & Co. and Paladin Capital Group among others.