NJFX Blog

Wall Township, NJ – Today, NJFX Utility Service LLC, a wholly owned subsidiary of NJFX, announced the successful acquisition of key infrastructure assets from SubCom LLC, originally developed in 2001. This acquisition comprises bore pipes and conduits situated in Manasquan and Avon, NJ. This offers purpose built underground access to the NJFX Wall CLS Campus. These critical infrastructure assets required maintenance, which involves use of complicated and scarce marine expertise. 

Starting in September 2023, NJFX engaged with several marine contractors providing necessary maintenance to these assets, to prepare them for another 25 years, which is the useful life of a subsea cable. This included proofing bore pipes with divers that have underwater welding capabilities.  The number one priority is always life safety which makes this an expensive maintenance exercise in preserving US Critical Infrastructure.

Ryan Imkemeier, the CLS Manager at NJFX, highlighted the collaboration’s depth with HDD and MCC (Marine Contractors and Consultants) to ensure seamless operations, he stated, “We’ve worked closely with our contractor to ensure there are no hiccups. Delays can become costly, and it’s our priority to prepare thoroughly to avoid any potential issues.”

NJFX supports AquaComms who lands in one of the four acquired bore pipes with its Havfrue/AEC-2 cable, connecting the US to Denmark, Norway, and Ireland. Other significant customers of the NJFX Campus include Tata Communications who owns TGN 1 & 2 connecting to the United Kingdom and Seaborn Networks, which owns the Seabras-1 cable connecting Wall, NJ to Sao Paulo, Brazil.

Gil Santaliz, the CEO of NJFX, further emphasized the investment’s significance, “We have invested close to $2 million to ensure these critical assets are ready for the next 30 years of use. This not only demonstrates our commitment to maintaining robust infrastructure, but also to securing New Jersey’s position in the future of transatlantic connectivity.”

Currently there are over 574 active and planned submarine cables reported by TeleGeography in January of 2024.  This includes fourteen transatlantic subsea cables on the east coast of the United States with seven of these cables being considered modern (these include ACE-1, Havfrue/AEC-2, Grace Hopper, Amitie, Marea, Dunant, and EXA Express) with at least 15 years of useful life supporting voice, data, and cloud connectivity. There are 870,000 miles of subsea routes globally with projects like 2Africa, Bifrost and Echo being deployed in the next coming years. These subsea systems solve for topics ranging from geopolitical concerns to economic development for countries who need to be connected and participate in the digital economy.

This acquisition of these assets strengthens NJFX’s role in global communications by restoring transatlantic connectivity infrastructure.

About NJFX:

Located in Wall, NJ, NJFX is the innovative leader in carrier-neutral colocation and subsea infrastructure, setting a new standard for interconnecting carrier-grade networks outside any major U.S. city. Our campus hosts over 35 global and U.S. operators, including multinational banks that rely on us for their “never down” network strategies. The NJFX campus is also where the major cloud operators have their global backbones physically connecting to transatlantic cables to Europe and South America. NJFX customers requiring transparency and true diversity can interconnect at a layer one level with their preferred network connectivity partners.

Media Inquiries, please contact:

Emily Newman | PR & Marketing Manager | [email protected]

On February 9th, NJFX’s Tier 3 carrier-neutral and subsea colocation facility hosted a Critical Infrastructure Forum supporting various applications for multinational banks. This event marked a revolutionary stride towards redefining cloud, IP, and global connectivity with 30+ executives presenting from Fortune 100 and 500 companies within NJFX’s advanced facility.

The forum facilitated sessions on enhancing network infrastructure and enabling private backbone access to the major cloud operators. Additional topics included insights from the world’s largest Internet exchange provider and a leading network operator providing last mile access throughout LATAM.

Key participants and highlights included:

• Head of Solutions Architecture of Banking and Payments from AWS.
• COO’s from Orchest, Colt, and Crown Castle, emphasizing the importance of scalable and resilient network infrastructure.
• Executives from DE-CIX, sharing strategies on internet exchange capabilities and global business development.
• Representatives from Altice, Verizon, EXA, and AT&T, discussing advancements in mobile networks and enterprise fiber solutions.

This forum underscored NJFX’s role in facilitating a future-proof, expansive internet infrastructure, highlighting the collective effort towards a more connected and efficient global network.

About NJFX

NJFX is setting a new standard for interconnecting carrier-grade networks outside any major U.S. city. Our campus hosts over 35 global and U.S. operators, including multinational banks that rely on us for their “never down” network strategies. The NJFX campus is also where the major cloud operators have their global backbones physically connecting to transatlantic cables to Europe and South America. NJFX customers requiring transparency and true diversity can interconnect at a layer one level with their preferred network connectivity partners.

Welcome back to Luminaries Of Telecom!

In the ever-evolving landscape of telecommunications, a realm continually reshaped by breakneck technological advancements, stands a luminary who has not just witnessed but actively sculpted our hyper-connected world. John Hayduk is a visionary in the realm of global network connectivity and has built a remarkable career path paralleling the industry’s transformation. Hayduk’s journey reflects a shift from the simpler, quieter days of analog to the dynamic, intricate webs of the modern digital era.

Pioneering the Digital Communication Revolution

John Hayduk’s distinguished career in telecommunications took root in the suburbs of Pittsburgh, Pennsylvania. After graduating from Penn State in 1990, he embarked on his professional journey in New Jersey at the infamous Bellcore that eventually morphed into Telcordia. This transformation marked a significant phase in his career. With his master’s degree in computer science and specializing in software development, Hayduk took on a critical role at Telcordia.

Hayduk explains, “At Telcordia, after dedicating four to five years to software development, I was presented with a pivotal career decision: to continue the technical track or to transition into management. Choosing the latter, I embarked on the managerial track. This shift involved overseeing software development teams, with each role bringing larger teams under my guidance and expanding responsibilities.”

Following several years of successfully managing various development teams, Hayduk was offered a new role managing a P&L focusing on a suite of applications dedicated to Wireless Network Management at Telcordia.

Reflecting on this period, Hayduk notes, “By 2000, cell phones had become a common accessory for most people. The period from 1996 to 2000 was crucial in the wireless business. At Telcordia, we were developing and providing software solutions for major wireless providers to efficiently operate their networks. This era marked a time of rapid expansion in wireless networks, aligning with the widespread adoption of mobile phones. Notably, the end of ‘03 saw revenues reaching $100 million, and by 2004-2005, we witnessed a surge to approximately $140-150 million.”

Architecting Global Connectivity

After a decade of shaping the telecom landscape at Telcordia, Hayduk was poised for a new challenge. In 2005, he made a strategic move to Tata Communications marking a pivotal point in both his career and the company’s trajectory. This era signified the dawn of Tata’s expansion into international services. With Hayduk’s extensive background in software and a proven track record of seamlessly blending technical expertise with strategic insight, Hayduk assumed the role of Chief Technology Officer.

Upon joining Tata Communications, Hayduk found himself at the heart of the company’s pivotal growth phase. He played a significant role during key milestones, notably the acquisition of Tyco Global Network (TGN). This strategic move endowed Tata with substantial subsea capabilities, extending from the Atlantic to the Pacific, and significantly enhancing their network with various Points of Presence (PoPs). Just 8-9 months following this, Tata further expanded its reach by acquiring Teleglobe, adding an additional 45-50 international PoPs to Tata’s network, and a significant global IP backbone.

Hayduk reflected on the evolving challenges in the industry, stating, “The landscape of technology was undergoing a drastic transformation. Around 2002-2003, we saw a shift with internet usage, voice calls transitioning to video collaboration, and the start of cloud based computing and storage options. This change had a profound impact, not just in terms of the nature of communication, but also in the bandwidth requirements. The rising demand for network capacity, coupled with the trend of cloud computing and the shift towards cloud-based processing, posed unique challenges to our network’s ability to meet those needs.”

He continues, “We could no longer afford delays in reconfiguring or upgrading our infrastructure to meet these demands. My background in software, particularly in supply chain management with our capacity vendors, became crucial. It enabled us to rapidly scale up our services, ensuring that when a major customer placed an order, we could meet their needs with exceptional speed.”

During his tenure at Tata Communications, Hayduk played a pivotal role in orchestrating complex initiatives and deploying a new subsea cable in the South China Sea. His responsibilities extended beyond technology, involving intricate supply chain management and international vendor relations, highlighting his adeptness in navigating the complexities of global telecommunications expansion.

South China Sea and Beyond

Based in New Jersey, Hayduk’s leadership involved not just strategy but also the intricate management of remote supply chains, underlining the challenges within international operations.

Hayduk detailed the meticulous planning required, “Understanding every step of the planning and deployment phase is crucial. When building our Intra-Asia Cable, securing permits in the South China Sea was more challenging than anticipated, forcing us to reassess our construction strategy. The dilemma was whether to adjust our build direction or halt operations due to permit complications in contested waters.”

Elaborating further, Hayduk added, “Navigating governmental approvals was complex. Although technically in international waters, China’s territorial claims over the South China Sea meant we couldn’t assume unimpeded passage. We adopted a cautious approach, ensuring we obtained permits even in areas regarded as international waters.” 

The task of deploying this subsea cable was also done during the politically sensitive period of the Beijing Olympics which added layers of complexity, and impacting construction time. Finally, the long-awaited permit approval arrived, bringing a sense of relief and accomplishment that finally allowed the construction of the cable to complete.

For other cable builds, like from the west coast of India to Europe, “We designed subsea systems to land prior to existing congested cable systems in and around the Suez Canal, and then run terrestrially through Egypt out to the Mediterranean. This approach offered a diverse alternative – a contingency in case of disruptions. Our goal was to provide a unique option from a market standpoint.”, explains Hayduk.

This example required negotiating with entities like Telecom Egypt for terrestrial builds, which required balancing practical business needs with inventive solutions. Projects around the Suez Canal demanded collaboration with local stakeholders, illustrating the intricate, often delicate geopolitical nature inherent in global telecom projects.

Hayduk explains, “This strategic decision not only highlighted the need for innovative routing solutions but also underscored the importance of robust partnerships.”

Hayduk’s insights into the pivotal Egypt project highlight the collaborative essence and strategic reliance on local partnerships that have been instrumental in Tata Communications’ growth. He notes, “For the terrestrial build, we needed to work closely with Telecom Egypt, relying on them for the cable landing station construction. This partnership underscored our dependence on local expertise and the crucial role of subcontractors in the subsea cable build process.”

By 2014, this evolution had propelled Tata Communications to a unique position as the only company with a fully-owned subsea fiber network that encircles the globe. This vast network, serving as the backbone of global connectivity, extends its reach to over 200 countries and territories. A testament to its impact, about 30% of the world’s Internet routes flow through Tata’s network.

Hayduk explains, “In this instance, we developed a consolidated subsea platform that offered significant scalability – specifically, the ability to exponentially increase bandwidth in multiples of 100Gbps units to 1Tbps and beyond, advancing towards spectrum-type fiber pair deals.”

Networks and the Future

Hayduk foresees the crucial role of advancing fiber optics and software augmentation in meeting the growing demands of technology. He emphasizes that the strategic expansion of fiber optics is key not just for increased capacity, but also for ensuring the reliability and low latency essential to support various applications. This is particularly important for applications requiring stringent response times, such as high-frequency trading and business collaboration tools, which after the pandemic, have become a critical utility.

“Immersive video, the metaverse, and augmented realities are poised to surge, demanding bandwidth to reach unprecedented heights. In this landscape, wireless technologies find their niche in providing access. However, the inherent limitations of spectrum availability underscore the perpetual need for extensive fiber optic infrastructure. As the digital realm expands with innovations like the metaverse, the hunger for increased bandwidth intensifies, necessitating further investments in fiber optics. The advent of 3D virtual experiences and the metaverse introduces a paradigm shift, demanding exponential increases in bandwidth,” Hayduk explains.

The telecom industry is on the brink of a transformation, and according to Hayduk, the future will see an unyielding demand for networks. While wireless technologies are essential, especially for access, the heart of capacity-intensive applications lies in fiber and wired solutions.

Legacy in the Telecom Space

Hayduk’s journey stands as a striking testament to his adaptability, foresight, and unwavering commitment to progress. His career, marked by significant contributions and visionary leadership, sheds light on the industry’s transformative evolution, offering valuable lessons for both seasoned leaders and aspiring newcomers navigating the rapidly changing landscape of telecommunications.

As the industry continues to evolve at a breakneck pace, Hayduk’s legacy resonates powerfully. His ability to steer the field into new frontiers, where technological innovation intersects with practical business acumen, remains exemplary.

Hayduk emphasizes, “Staying open-minded, being ready to learn, and embracing change are crucial. Adaptability and quick strategizing in the face of unforeseen challenges are key to not only good leadership but also being a great teammate. Together, we can figure anything out.”

Looking ahead, Hayduk turns our attention to emerging domains like the metaverse and the reshaping of operational landscapes by artificial intelligence. “The dynamic and challenging waters of telecommunications await the next generation of visionaries to navigate new paths and discover innovative solutions, propelling the industry into uncharted territories,” he reflects.

In the symphony of connectivity, where tomorrow’s digital possibilities resonate, John Hayduk’s influence and insights continue to serve as a guiding compass, inspiring excellence in the relentless quest to advance the world of telecommunications.

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A sincere thank you to our latest Luminary, John Hayduk, for sharing his wisdom and adding his unique story that has shaped telecom today. We’ve only scratched the surface of his triumphant journey, and there’s undoubtedly more to explore. Readers, we encourage you to share your thoughts and reflections on John’s story in the comments. For suggestions on other telecom leaders to spotlight, reach out to [email protected]

 

Geopolitical Importance

Many countries rely heavily on submarine cables to help to keep their economy going and their security in check. 

“[The cables] carry 99 per cent of all transcontinental internet traffic. So that includes your video calls, your stock market transactions, conference calls, military operations — everything,” Joe Brock, a Singapore-based Reuters correspondent, tells ABC RN’s Late Night Live.

Though they cost hundreds of millions of dollars to build, they offer greater speed than satellite internet, which only accounts for a very small fraction of all internet traffic. 

“It’s much slower to transmit data through satellites, and there’s far less bandwidth.

These underwater cables have always been of interest to governments, says research analyst Lane Burdette.

“It’s because of how much governments rely on them from a communication standpoint.”

Burdette works with TeleGeography, a Washington-based company that collects and analyses communication data.

“Sub cables have always been important for geopolitics,” she says.

“However, I think the geopolitical situation of the last decade, especially in regard to potential seabed warfare, [has] ramped up.

“And so people are paying more attention to sub cables.” 

Lately, they’ve been the source of increased tension between the US and China, who have been in dispute over submarine cable deals.

For context, while there are some government-owned cables across the globe, the majority of cables are privately owned and operated by telecommunications companies.

Chinese company HMN Tech was set to build a submarine cable running from Singapore to France, but lost its contract after the US put in a higher bid of US$600 million ($944 million), Brock explains.

He says the US wanted to have more control over the security of their communications, hence their push to outbid the Chinese company.

“The US government intervened behind the scenes to persuade, with cash sweeteners, telecoms companies to change their mind and flip it and then choose an American supplier called SubCom, which is a main US cable supplier, and they do work for the US government,” he explains.

“The US would much rather cables were built by US companies … so it’s sort of this behind-the-scenes jostling and, in this case, Washington won the day.”

Spying and Cutting Ties

There are constant fears of espionage and sensitive data being extracted from submarine cables.

For example, Brock says US intelligence services “claim that the Chinese and others can fit back doors onto cables, which would reroute data … Your private data could then be hoovered up by intelligence services”.

The most likely way to hack data from a submarine cable is from the landing station, he says.

These land-based stations are where the cable connects with terrestrial networks.

They’ve been hacked before. Brock points to the case where Edward Snowden exposed that the US’s National Security Agency had tapped into submarine cables and was extracting data from US citizens, more than a decade ago.

What happens if cables get cut?

These fears are warranted. History has shown that cables have been cut before. 

And once a country’s communications has been cut off, they become more vulnerable.

For instance, during World War I, the British cut all of Germany’s undersea cables, except one.

“That’s how they were able to get the Zimmermann telegram, which, of course, was a rather important component of the war,” Burdette says.

In January 1917, the Zimmermann telegram was issued by the German Foreign Office proposing an alliance with Mexico if the US entered World War I.

British Intelligence got hold of this information and informed the Americans, which led the US to declare war on Germany.

“So these cables have been intentionally damaged in warfare before. They’re a really important way for states to be able to connect across the globe. And they’re an interesting target in the case of a hot conflict,” Burdette says.

However most of the damage to submarine cables isn’t intentional.

“I would say the biggest threat to sub cables out there, at least on a routine basis, is accidental interaction with people. So [for example] fishermen and trawlers — that comprises the majority of breaks,” she explains.

Natural disasters, such as earthquakes, also contribute to cables’ damage.

For example, Tonga was left largely offline for more than a month after a volcanic eruption in 2022 damaged its cable.

Taiwan also lost its internet during February 2023, and claimed that Chinese ships were responsible, Brock says.

“They didn’t say whether it was an intentional act. And the Chinese have not responded to explain whether they were involved … so there’s a bit of mystery that’s shrouded around that. 

“Taiwan is a big concern because there’s so much geopolitical tension over [that region]. They have several cables, they are all running through areas of water, which are highly contested,” Brock says.

“But I think it’s given warning to everyone … It shows what could be done if someone wants to do something deliberately.”

The Cost of Unplanned Outages

Disaster recovery and preparedness are not just routine considerations; they’re at the forefront of operational strategy here at NJFX. This shift is driven by the increasing prevalence of natural disasters, technological mishaps, and unforeseen incidents. In today’s world, the average cost of unplanned outages for companies now surpasses $16,000 per minute. Such a staggering figure not only emphasizes the financial burden but also highlights the heightened risks of exposing sensitive data and incurring substantial revenue losses. This reality underscores the imperative for businesses to adopt and refine robust disaster recovery plans, ensuring resilience in the face of these challenges.

Identifying and Addressing Network Vulnerabilities

Understanding the various factors that contribute to network vulnerabilities is crucial. These factors can range from increasing frequency and severity of natural disasters, the risk of planned attacks on infrastructure, evolving cybersecurity threats, and the complexities of maintaining service during unforeseen disruptions. Addressing these challenges is essential for ensuring robust and resilient network operations.

Addressing these critical points of failure, NJFX presents a compelling solution with its state-of-the-art 64,000-square-foot facility. Equipped with direct fiber network connections and backup generators supported by Uninterruptible Power Service (UPS), NJFX sets a new standard in carrier-grade network interconnections, strategically located outside any major U.S. city. Today, our facility hosts 35 global and U.S.-based operators and serves as a critical node for multinational banks implementing a ‘never down’ strategy. The NJFX campus also connects major network and cloud operators to global backbones, linking transatlantic cables to Europe and South America. For enterprises seeking true network diversity, our facility offers layer one interconnectivity with a variety of network connectivity partners. This not only meets but exceeds the disaster recovery requirements of metropolitan providers, offering enhanced redundancy and ensuring seamless operational continuity.

Beyond the Ordinary: NJFX’s Unique Advantage

What truly distinguishes NJFX is our unwavering commitment to comprehensive disaster recovery planning. Our unique combination of secure, direct access to numerous networks at our cable landing station campus sets us apart in the industry. This, coupled with our strategic location in Wall, NJ, far from the congested areas of New York City and Northern New Jersey, ensures enhanced operational reliability, particularly in times of crisis.

In a world where operational continuity is paramount, choosing NJFX means opting for a partner that prioritizes your business’s resilience in the face of adversity. Reach out to us today to explore how we can safeguard your critical operations, ensuring your business remains unyielding, even in the most challenging times. With NJFX, be assured that when it comes to disaster readiness, you have a reliable and strategic ally by your side.

Emerging from the enlightening whirlwind of the Capacity Europe conference in London, industry titans from the subsea communications realm have begun diving into critical dialogues that are shaping the future. The conference brought together an elite ensemble of cable operators, carriers, and network architects, each poised to chart the path of our industry’s future, assess the fast-evolving dynamics of the subsea sector, and strategize on the road ahead.

Our very own visionary, Gil Santaliz, NJFX’s Founder and CEO, joined an esteemed panel to dissect the implications of significant technological advancements. They addressed how the imminent retirement of aging cables, cost reductions by OTT’s, and the miniaturization of equipment — which is now faster and boasts greater capacity — are catalyzing industry transformation.

Panel Discussion: How are New Subsea Technologies and Supply Chain Disruptions Forcing Business Models to Evolve?

Panelists:

Gil Santaliz – CEO, NJFX
Gavin Rea – CTO, GBI
Wilfried Dudink – Senior Director, Strategy & Development, Digital Realty Thomas Soerensen – Director, Ciena
Isabelle Paradis – President & Founder, Hot Telecom (Moderator)

One of the many notable shifts highlighted during the discussions was the rapid expansion of subsea projects. What once was a modest requirement for data transfer has exploded into an era where bandwidth is devoured at unprecedented rates. It’s clear that the recent surge in cable construction is not merely timely but crucial.

These up-and-coming projects align perfectly with the lifespan of the latest cable systems. We’re moving from systems with 2 & 4 fiber pairs to those boasting 8 to 24, rendering the operational expenses of older systems untenable. The availability of warranties and parts makes these aging systems unappealing, especially when contrasted with the costs associated with backhaul and network design for what could be a handful of years.

Santaliz articulates this pivotal moment with clarity: “We’re at the cusp of a subsea deployment boom, reminiscent of the early 2000s, poised to form the backbone of global connectivity for the next two decades. This surge is in tandem with an unparalleled increase in data traffic crossing continents. The new generation of subsea cables introduces an economic shift, heavily influenced by OTT providers, prompting a subset of carriers to adapt to a secondary marketplace. At NJFX, our unique Tier-3 colocation model is strategically designed to meet the demanding requirements of subsea cable operators. We’re ready to deliver enhanced capacity, superior reliability, robust security, and flexible interconnection options that seamlessly connect North America, South America, and Europe.”

Digital Realty’s Senior Director, Wilfried Dudink, echoed the sentiment, noting the significant transition toward more efficient systems. “OTTs are driving down the essential operations and maintenance funding for cable stations, which now find themselves operating at a capacity 80% larger than necessary. This is due to the fact optical equipment has become exponentially more efficient over the past two decades,” he commented.

Building on this theme, Santaliz offered a robust expansion of his earlier thoughts. “The influence of OTT powerhouses is becoming increasingly central to the financing of subsea cable projects,” he stated. “Companies like Meta and Google are not just consumers of capacity; they are becoming indispensable partners for cable operators.” Santaliz’s statement underlines a pivotal shift in the industry, suggesting that collaboration with these tech giants is crucial for the sustained growth and evolution of global subsea infrastructure.

Gavin Rea, CTO at GBI, contributed to this topic by shedding light on the evolving architecture of these systems. He highlighted that the once substantial cable landing stations are now giving way too much more streamlined operations. The advancement in technology means subsea cables may only require simple beach huts, with fiber pairs extending to multiple huts or Cable Landing Stations connected merely by splicing in beach manholes. This marks a significant reduction in complexity and potentially, in operational costs, signaling a leaner future for the physical touchpoints of our global internet infrastructure.

Isabelle Paradis turned the discussion to Thomas Sorensen, Director at Ciena, who verified a remarkable development in the subsea capacity sector. He confirmed that what once required 50 racks of optical gear to manage 5 terabytes of subsea capacity can now be accommodated by a single rack. This significant reduction in physical infrastructure is thanks to the innovative strides made by companies like Ciena in the development of Submarine Line Terminal Equipment (SLTE).

Ciena has been at the forefront, pushing the boundaries of subsea technology with equipment that is not only faster and smaller but also more cost-effective. The introduction of advanced branching units is a game-changer, allowing for increased flexibility with the possibility of multiple landings across continents. This, combined with real-time network optimization and grooming capabilities, underscores a seismic shift towards more efficient and dynamic subsea networking solutions.

Such innovations are not just reshaping the physical landscape of networking equipment but are also redefining the possibilities for global communication networks, ensuring they are more scalable, adaptable, and capable of meeting the ever-growing demands of our connected world.

In the ever-evolving realm of digital technology, the various conferences encompassing our industry provide an opportunity to highlight the growing trends that ultimately shape connectivity. Our esteemed NJFX team recently journeyed to London, championing discussions on the transformative landscape of digital infrastructure and emphasizing the importance of ushering in a new generation of young leaders to these platforms. 

Our General Manager, Felix Seda, had the privilege of participating in the Keynote Panel of Capacity Europe 2023, where he shared the stage with distinguished trailblazers, innovators, and leaders of the 2023 Power 100 list who are at the forefront of shaping global digital infrastructure. 

Keynote Panel: Preparing for the Next Wave of Disruption

Panelists:

• Martijn Blanken – CEO – EXA Infrastructure
• Ivo Ivanov – CEO – DE-CIX
• Felix Seda – GM – NJFX
• Alexandre Pebereau – CEO – iBasis
• Paul Abfalter – Head of Global Wholesale & OTT – Telstra
• Nadine Hawkins – Editor – Capacity (Moderator)

The panel focused on future innovations that could help unlock value for customers. Seda passionately spoke about the significance of new critical infrastructure and emphasized the necessity of fostering diversity in network architecture. As a testament to innovation, NJFX is proud to be recognized as the first North American Cable Landing station that boasts an integrated Tier-III carrier neutral colocation within its CLS campus.

In Seda’s words, “NJFX has reimagined the traditional data center model, forging an interconnection marketplace at the center where subsea and terrestrial fiber physically converge. Having access to multiple terrestrial & subsea options provides the foundation for network diversity, ultimately providing the ability to reach new customers and penetrate new markets.”

Further establishing its pivotal role in the industry, NJFX’s strategically designed infrastructure offers direct connectivity to four subsea cable systems, bridging six countries over three continents. NJFX’s expansive capacity across three Meet Me Rooms underpins our commitment to innovation, and with collaboration from over 35 network operators, NJFX proudly stands as a leading global marketplace for connectivity.

Leading networks and ISPs are realizing that legacy interconnection points are no longer a resilient option for secure network architecture. DE-CIX’s PoP at NJFX offers their customers the ability to pick up the New York fabric from the NJFX campus leveraging direct, low latency routes to business hubs bypassing potential points of failure. Recently, EXA Infrastructure announced their partnership with Bulk Infrastructure for HAVFRUE from the NJFX campus; fully integrating HAVFRUE with EXA’s extensive European and US network. The route provides direct connectivity to the Nordics while avoiding the major conventional transatlantic traffic passages.

While critical infrastructure and cutting-edge network architecture form the paths of our industry, they are complemented by another essential component: the people. The individuals we collaborate with, especially emerging talent, are indispensable to the industry’s future. Seda has consistently championed the significance of engaging young professionals. For the past five years, he’s emphasized the need to integrate fresh perspectives with the wisdom of seasoned experts. It was this passion that led to the inception of ‘Millennials in Telecom‘ in 2018. This groundbreaking initiative was the first to curate a platform where budding professionals and industry stalwarts could network and deepen their understanding of the industry. Evolving from its roots, ‘Millennials in Telecom’ has now transitioned to ‘PTC Beyond.’ The revamped initiative offers a unique BOGO registration, enabling organizations to bring along an additional member to the conference at no extra charge.

As we come to the end of Capacity Europe, we are reminded of the profound impact that conferences like these and initiatives such as ‘PTC Beyond’ have on the collective wisdom of the telecommunications community. It’s clear that our commitment to fostering the growth of young professionals through mentorship and inclusive platforms is not just an investment in individuals, but in the future of the industry itself. As we reflect on the insights shared and connections made, we carry forward the torch that Felix Seda and our NJFX team so proudly held high in London—illuminating the path for the next wave of innovators. Together, we’re not just navigating the dynamic currents of digital technology; we’re shaping them. Here is to the visionaries, the trailblazers, and every young leader stepping boldly into this transformative landscape. May our collaborative efforts continue to inspire, build bridges, and push boundaries in the ever-expanding digital frontier.

 

Welcome back to Luminaries Of Telecom!

In the buzzing world of telecom, where stories weave and intertwine, often a singular voice emerges, setting the tone, bringing clarity, and connecting dots we didn’t even know existed. You’ve seen her energizing conference halls and connecting with many of you at grand events. From her early strides with giants like MSNBC and Telx, her journey is nothing short of awe-inspiring. Beyond the bright lights of professional accolades, she’s also a force to be reckoned with – crafting stories as an accomplished writer, orchestrating engaging conversations on ‘JSA Podcasts’, and spearheading JSA, a PR and marketing firm that has become synonymous with industry excellence. We present to you a storyteller, a visionary, and an industry luminary – “The Nexus Narrator,” the incomparable Jaymie Scotto Cutaia!

From the moment she could express herself, Jaymie radiated an undeniable passion for learning and an eagerness to delve beyond the ordinary. This vibrant curiosity beckoned her towards the captivating world of writing and journalism. 

1999 was a year that would etch itself indelibly in Jaymie’s journey. As she stepped into the dynamic world of MSNBC, she wasn’t merely joining a news station; she was diving headfirst into a pioneering venture birthed from the genius collaboration between industry powerhouses: Microsoft and General Electric (GE). This was no ordinary newsroom—MSNBC, with its innovative approach and relentless quest for truth, was poised to redefine the very fabric of journalism. 

In her vibrant four years at MSNBC, Jaymie wasn’t just reporting stories; she was living them. From the heart-wrenching moments of 9/11 to the unfolding chapters of the war in Afghanistan, every story resonated deeply. These monumental events didn’t just make headlines; they reshaped Jaymie’s perception of journalism’s profound impact. They underscored the pivotal role of collaboration, the artistry and care in compelling narratives, and the sheer power of connecting with audiences.

This exhilarating chapter didn’t just mark Jaymie’s career; it set ablaze an undying flame—a relentless and exuberant passion for connecting as a writer- as a person- through storylines and successes- that showed no sign of dimming!

Jaymie felt the winds of change beckoning her towards a new adventure. Diving headfirst into the telecoms industry, she stepped into a realm vastly different from journalism. While the two sectors might seem worlds apart, this move was set to become one of the most defining moments in Jaymie’s illustrious career.

Joining The Telx Group, Inc. as the Director of Marketing and PR was serendipitous. The stars aligned, presenting her with an opportunity that perfectly matched her drive and ambition. Reflecting on her time there, Jaymie enthuses, “Telx wasn’t just any company; it was the pulsating heart of innovation. Every day felt like stepping onto the frontier of technological advancements. The place was buzzing with entrepreneurial energy, and the dynamism was infectious!” Central to this vibrant environment was the leadership of Rory Cutaia, Telx’s visionary founder, CEO, and Chairman of the Board. Their professional camaraderie would later blossom into a personal relationship, with Rory eventually becoming her life partner, husband and father to their daughter Ava.

One of the crowning achievements during her time at Telx was the conceptualization and popularization of the term ‘Colocation’. In a move characteristic of Telx’s entrepreneurship, the team dramatically transformed the iconic 60 Hudson Street building, literally drilling through its walls, to pioneer a direct equipment connection method. This audacious strategy bypassed the outdated and expensive local loop systems, setting a new industry precedent. The Telx management team was instrumental in championing this novel concept, ensuring clients and peers alike grasped the magnitude and implications of what would soon become foundational in telecommunications: the direct cross-connect.

As Jaymie navigated this new world, her interactions with a plethora of cutting-edge thought leaders from small and large telecom and enterprise companies alike, greatly enhanced and diversified her professional experience. Every discussion, every brainstorming session, and every collaboration subtly steered her towards a burning desire to craft something uniquely her own. As she mingled with the industry’s luminaries – the innovators, the disruptors, the visionaries – Jaymie’s entrepreneurial spark ignited brighter than ever. She wasn’t just networking; she was absorbing, learning, and constantly evolving. For Jaymie, every individual had a lesson to impart, a perspective to share, and perhaps even the potential to collaborate on future groundbreaking projects. She developed a synergistic philosophy that ‘one plus one equals three’, a belief that collective efforts amplify results. Such a mindset, coupled with her accumulated journalistic insights, led Jaymie to spot a glaring void in the telecoms landscape: a dire need for specialized industry-specific communication, education and promotion.  

The Rise of JSA

Jaymie had a clear vision: it was essential to master its nuances, keep a pulse on evolving trends, forge ties with influential leaders, and consistently pave pathways for companies to establish valuable connections. Her insights revealed the unparalleled advantage of specializing in a niche.

This eureka moment led to the founding of JSA in 2005, with the ambition of filling the void in the digital infrastructure domain – a niche crying out for a dedicated public relations and marketing ally. Over an impressive span of 18 and a half years, JSA has impeccably embodied this vision.

When asked about JSA’s enduring legacy and the catalysts for its triumphant journey, Jaymie credits the people who have been the beating heart of the organization. Challenges, which are yet inevitable, transform into innovative solutions, thanks to the collective brilliance of the JSA team. 

“Each brainstorming session is akin to watching fireworks of creativity,” Jaymie sparks a smile. The synergy she has fostered among her team is palpable, making JSA more than just a workplace—it’s a family. A family that thrives on mutual growth, routinely engages in enriching ‘lunch and learn’ sessions, and is unwaveringly committed to elevating their clients’ businesses.

JSA’s unwavering commitment to evolution and innovation remains at the forefront. The team continually reflects upon, ‘How can they stay ahead of the curve for their clients, both today and in the months and years to come?’ Jaymie and her team’s thirst for knowledge is ceaseless. Dedicated to understanding the latest technological breakthroughs, they discern how tools like AI can amplify their PR and marketing efforts. While automation brings efficiency, JSA emphasizes the irreplaceable value of genuine human connection.

For JSA, it’s clear that AI has sent transformative ripples across industry, especially in fields like medicine, data centers and even communications. Although JSA recognizes and leverages the power of AI, utilizing for example the plethora of multi-lingual research as a foundation for content creation, JSA utilizes platforms like ChatGPT with the utmost discretion, ensuring that the sanctity of clients’ data remains uncompromised and the final drafts unmistakably human. 

At its core, JSA champions the art of quality content. Jaymie, a writer by trade with a master’s degree in the discipline, has always placed a premium on eloquent and impactful storytelling. The writers at JSA, handpicked and meticulously trained, reflect this commitment to excellence. Collaborating with visionary clients who resonate with the company’s ethos provides the team with a canvas rich with stories of innovation, change, and progress. These narratives, steeped in authenticity and passion, don’t just engage—they inspire and foster partnerships. Unlike many agencies that might remain surface-level in their content, JSA delves deep, showcasing the luminaries and pioneers crafting the future. These narratives magnetize the best in the industry, drawing leaders who share JSA’s passion and drive. It’s not just about networking—it’s about cultivating a community bound by shared aspirations and dreams.

In her pursuit of excellence, Jaymie has adeptly leveraged a plethora of digital avenues. From hosting engaging discussions on their dedicated podcasts, such as Data Movers, to live stream interviews at industry events, to fostering dialogues through roundtables, active social media engagement, and insightful blogs, Jaymie ensures JSA’s presence is felt across every relevant digital platform. But the brilliance of her strategy lies in its coherence: each platform, while distinct in its offerings, weaves back into a consistent narrative that centers on their clients and the infrastructure industry, crafting captivating stories that resonate far and wide.

While countless stories under the JSA banner stand testament to their prowess, certain narratives evoke a unique blend of nostalgia and pride. Among them is the captivating tale of Hibernia. Initially introduced to the world as Hibernia Atlantic, the company’s meteoric rise saw it evolve into a global powerhouse, necessitating a rebrand that aptly reflected its expansive reach. The crescendo of their journey was the launch of Hibernia Networks, and particularly the rollout of the very first transatlantic cable in over a decade, Hibernia Express. This wasn’t just any cable; it was bridging New York and London with unparalleled speed and new technical innovation and much-needed capacity. This monumental endeavor represented a pivotal chapter in the annals of digital communication.

To ensure this historic moment received its due recognition, Jaymie and her team employed innovative techniques that were ahead of their time. Employing drone technology, which was still in its nascent stages back then, they captured breathtaking visuals of the cable making landfall on iconic beaches on both continents. This visual narrative, coupled with impeccable storytelling, caught the media’s attention, placing Hibernia Express in the limelight it so rightfully deserved. Jaymie reminisced, “It was a golden opportunity for us writers to document history unfolding before our eyes, and we felt truly honored to be part of that story.”

The X Factor

The turning point, what Jaymie fondly refers to as the ‘X Factor’, dawned in the tumultuous aftermath of the pandemic circa 2020-21. Amidst the adversities that the global crisis presented, what shone through was her team’s unwavering commitment. The adversities of remote work, homeschooling challenges, health threats – nothing could deter them. They reported to work with undiminished zeal, bringing not just their expertise but an undeniable passion. This resilience led to an epiphany: JSA was more than just a PR firm. They were custodians of narratives that represented a community, resilient and vital in the face of global challenges. Highlighting the endeavors of the telecom and critical infrastructure industry, who together ensured uninterrupted connectivity even through a pandemic, became a mission.

But another profound realization emerged during these trying times: the pressing need for sustainability. This wasn’t just a trend; it was an urgent call to arms. They recognized that they were amidst an industry that was not just acknowledging, but actively responding to the clarion call for sustainability. For Jaymie and her team, their roles transcended beyond mere jobs. They were on a mission, driven by purpose and the intent to bring about palpable change. Together, with amazing global collaboration of our industry’s finest thought leaders, they launched the ‘Greener Data’ movement.

‘Greener Data’ wasn’t just an abstract concept for Jaymie; it materialized as a co-authored book, a testament to our industry’s fervor for more sustainable, greener data networks and best practices. Within its pages, the narrative unfurled the tales of outstanding companies and visionary leaders, all steered by the ambition to sculpt a more eco-conscious digital domain. Confronted with the stark reality that the industry accounted for 3 to 4% of global energy consumption, the magnitude of their responsibility became undeniably clear.

Rooted deeply within the critical infrastructure sector, the book emphasized its inherent role as the epicenter of this ecological transformation. Dispelling common misconceptions, Jaymie stressed that genuine sustainable advancements does not arise solely from political debates or grandiloquent global conferences. The true change-makers, as highlighted in her book, are the innovators, tech enthusiasts, and industries that band together, marrying vision with actionable strategies, to sculpt a greener tomorrow. ‘Greener Data’ is more than just a book; it was a manifesto, a call to action for an entire industry.

Sustainability for All

From the inception of the ‘Greener Data’ initiative to its maiden book launch on Earth Day 2022, the trajectory of this movement has been transformative. Bringing together 24 pioneering voices to illuminate their sustainable endeavors, this initiative quickly transitioned from a mere book to a catalyst, igniting an industry-wide transformation. Its rapid adoption and commendation by several companies, earmarking it as mandatory reading, affirmed its monumental impact. Further, achieving the status of an Amazon best-seller was an acknowledgment of its resonance within the industry. As ‘Greener Data’ articulated, the journey to sustainability is progressive, interspersed with strides, partnerships, shared education and collective growth.

Recognizing the indelible imprint the first volume created, the extension of this journey was a foregone conclusion. Earth Day 2024 is set to witness the release of ‘Greener Data Volume Two’ on Amazon. Boasting contributions from over 50 industry stalwarts, this volume exemplifies the growing momentum of this initiative. This compilation isn’t merely an aggregation of chapters but a comprehensive tapestry of global perspectives, encompassing insights from tech luminaries, subsea experts, carriers, and individuals deeply intertwined with the OSI stack. With contributions spanning almost every global corner, this volume stands as a testament to its global outreach. The recent kickoff event, brimming with enthusiasm, chapter unveilings, and shared aspirations, heralded the impending transformative wave this volume promises to usher.

The genesis of ‘Greener Data’ didn’t occur in isolation. It stemmed from Jaymie’s fervent desire to innovate and to spotlight the multifaceted narratives that often remained confined within the industry’s echo chambers. Upon seeking external feedback regarding this endeavor, she was inundated with overwhelming support, reinforcing that ‘Greener Data’ resonated deeply with the industry at large.

What sets this initiative apart is its core premise: in a domain where knowledge dissemination largely relies on interpersonal exchanges, ‘Greener Data’ offers a tangible, curated repository. It archives invaluable experiences, curates sustainable journeys, and invites every industry participant to partake in this collective voyage towards a sustainable future. For Jaymie and JSA, this isn’t just an undertaking, it’s a mission, one that amplifies myriad voices, facilitates collaboration, and carves out a more sustainable path ahead.

Leading Women in Telecom

In an era where inclusivity and diversity were increasingly recognized as not just ethical imperatives but also as drivers of innovation and growth, such gaps in gender equality within our own industry were disconcerting. For Jaymie, it wasn’t just about spotting the discrepancy, but about proactively seeking solutions.

Witnessing a glaring disparity in speaker representation at industry events, with often just a lone female voice amidst a predominantly male panel, Jaymie saw a call to action. She asked our industry’s top event organizers how JSA can help get more equal representation on the speaker circuit, and they cited a lack of available female speakers. 

Enter the Women Speaking Initiative (WSI), launched by JSA. By creating a platform, JSA offers women the opportunity to craft a speaking resume. This not only provides event organizers with a dynamic pool of accomplished female professionals eager to share their insights but also obliterates the age-old excuse of not knowing where to find them. It is a proactive move, aimed at not just highlighting female expertise but galvanizing them to actively seek out and embrace speaking opportunities.

For many young women just entering our industry, the stark underrepresentation of women, especially at key conferences, is immediately palpable. Beyond the inherent challenges of navigating a male-dominated domain, many women grapple with the dilemma of how to initiate their journey onto the stage. WSI is more than just a directory; it’s a call, urging women to amplify their voices and assert themselves in the industry.

But inclusivity isn’t just on the speaking pulpit, it’s also in the office.  By fostering inclusive work cultures, championing flexible work models, and nurturing supportive communities, both within organizational confines and through specialized women-centric networks, we can pave the way for a more balanced, equitable, and thriving industry. The narrative isn’t about just representation; it’s about creating spaces where women -and all diverse people and voices- can flourish, contribute, and lead. The road ahead is promising, and with concerted efforts, the future looks bright.

Jaymie began collaborating with various industry groups and associations, curating lists of accomplished women professionals eager to lend their expertise and insights. These were women who had made notable strides in their respective fields, who brought with them a wealth of knowledge, experiences, and perspectives. Jaymie was determined to ensure that the next time an event organizer said, “We don’t know where to find them,” she’d have a list to share.

Her drive didn’t stop there. She championed the creation of forums and networks dedicated to women in tech, creating platforms for them to connect, collaborate, and climb the ladder of leadership. These initiatives not only aimed to equalize representation in panels but also to challenge and change the broader industry narrative around gender diversity.

It wasn’t just about achieving gender parity on panels but about reshaping the industry’s fabric to be more inclusive, equitable, and reflective of the diverse world it serves. Jaymie’s proactive approach showcased a simple truth: when equipped with resources and the right intentions, change is not just possible; it’s inevitable.

Thank you to Jaymie Scotto Cutaia for sharing her invaluable insights as “The Nexus Narrator”. We’ve only scratched the surface of her dynamic journey, and there’s undoubtedly more to explore. Readers, we encourage you to share your thoughts and reflections on Jaymie’s perspective in the comments. For suggestions on other telecom leaders to spotlight, reach out to [email protected]. Until next time, keep the conversation going and stay engaged!

 

In the fast-paced and ever-changing landscape of the digital age, telecommunications have undeniably risen to the ranks and establishing itself among the top sixteen critical infrastructures according to the experts at CISA – America’s Cyber Defense Agency. It’s no exaggeration to say that in today’s world, we depend on connectivity as much as we do on electricity and healthcare. Our modern lives are so intricately woven into the fabric of connectivity that even a minor hiccup could not only cripple businesses but also send shockwaves through our daily lives, causing unforeseen disruptions we can hardly fathom. Welcome to the era where our very existence is tethered to the invisible threads of telecommunications.

In this modern world, where backup generators stand ready to thwart the inconvenience of power outages, the absence of access to one’s IT network takes on an entirely new dimension of urgency. The year 2024 beckons on you to reevaluate the bedrock of your digital diversity. For businesses deeply dependent on traditional carriers, a pivotal question looms large: Can these carrier assets truly assure the diversity of connectivity that our increasingly interconnected world demands?

NJFX is the first North American Cable Landing Station campus, uniquely integrating a Tier-III carrier-neutral colocation with an existing CLS – exemplifying Connectivity Unrivaled. Our strategic critical infrastructure enables direct access to four subsea cable systems, connecting six countries across three continents. With multiple terabits of capacity readily available across three Meet Me Rooms, NJFX have taken the steps establishing themselves as the foremost global colocation with over 35 network operators providing true diversity from New York City and Miami. Our innovative approach has set a new standard within the telecommunications industry, today being replicated by others. NJFX has taken the traditional data center concept and has established an interconnection marketplace at the cable head ends where subsea and terrestrial providers meet.

The Internet of Things (IoT) is reshaping industries globally, from manufacturing and transportation to healthcare and agriculture. As IoT’s influence continues to grow with the surge in connected devices, it’s essential to recognize the need for a secure, diverse, and redundant infrastructure to meet its advanced demands. In enterprises, IoT devices are revolutionizing financial transactions, security, healthcare monitoring, and customer service. It’s essential to house your equipment in a secure and reliable facility like NJFX, providing a seamless cross-connect for smooth and uninterrupted connectivity.

In an era where telecommunications has transformed from a mere utility into an indispensable lifeline, NJFX shines as a trailblazer in the realm of resilient and innovative connectivity solutions. NJFX’s unwavering commitment is to forge robust, cutting-edge connectivity solutions, with a particular focus on critical infrastructure, ultimately shaping a diverse connectivity hub that meets the evolving demands of our interconnected world.

Known for his measured approach and keen understanding of market dynamics, Dan Caruso has consistently demonstrated a knack for savvy foresight into the ebb and flow of trade. After laying the foundation of success in his initial ventures, he is now diversifying his portfolio by investing and collaborating with an array of entrepreneurs across various industries. With an eye on the future, Caruso is exploring cutting-edge domains such as space tech, quantum computing and sensing, and artificial intelligence. Unlike most professionals who set 5, 10, or perhaps 20-year objectives, this visionary is thinking in terms of a “100-year plan,” showcasing the grand scale of his ambition. Known as an instrumental leader in companies like Level 3 Communications, ICG, and, most notably, as the Co-founder and CEO of Zayo Group, Dan Caruso is making a significant mark on the industry. As he charts a course toward a future rich with potential, he has aptly earned the moniker “The Foreseeing Magnate.” Discover more about the visionary charting a path towards an innovative and expansive future: Mr. Dan Caruso.

Hailing from the south suburbs of Chicago, Dan Caruso was no stranger to skepticism and discouragement. From an early age, he encountered voices, including a guidance counselor, who plainly told him, “You’d never be able to do it.” As a young, aspiring engineering student these words resonated deeply with Caruso, especially when he received rejection letters from all the schools to which he had applied. He vividly recalls this defining moment, which ignited a fire within him to take education seriously. Undeterred, he enrolled in the liberal arts colleges, with the intention of transferring into an engineering program—a plan that advisors tried to dissuade him from. Caruso, however, was resolute; he excelled in math, physics, and chemistry, earning top marks that allowed him to transfer into his desired engineering program. Although it took him five years to complete his engineering studies, much to his parents’ chagrin, he remained committed.

While still in school, Caruso became keenly aware of significant developments in the broader world, specifically the landmark deregulation of the Bell Systems monopoly. This event, along with other emerging trends in telecommunications, caught his attention. After completing his B.S., Caruso found himself irresistibly drawn to the seismic shifts occurring within the telecom industry. He launched his career at the Illinois Bell subsidiary of Ameritech and earned his MBA from the University of Chicago at night. He secured his first significant role at Chicago Fiber Optics, which later became MFS Communications Company, marking what he now recognizes as his inaugural experience with large-scale, growth-oriented companies.

Reflecting on those formative years in the telecom industry and the sweeping changes of that era, Caruso observed, “The expansion of fiber optics, the start of mobile, this idea that data was going to be bigger than voice, and deregulation made the telecom industry poised for revolutionary change. The Bell system had broken up and competition was on the verge of being introduced. MFS was beginning its scale-up journey when I joined, and I was fortunate to ride that hockey stick curve of explosive growth.” Dan was wired to be on the side of the newly emerging competitors rather than the side of the traditional telecom monopoly, Caruso played an integral role at Chicago Fiber Optics, which underwent a series of evolutions, eventually becoming Metropolitan Fiber Systems and then MFS Communications Co. In this vibrant, rapidly evolving environment, Caruso carved a path that would lead him to become a transformative figure in the world of telecommunications.

After several years, MFS was sold to WorldCom, providing Caruso with invaluable insights. “This merger helped me understand what it means to be part of any venture,” he reflects. “Whether it’s a successful startup, scaling up, an IPO, or a roll-up — all of those things happened for me during a 5-to-6-year period, including building relationships that paved the way for the next stage of my career.”

Caruso was among the select few whom WorldCom was keen to retain. He found himself in a position just one step removed from Bernie Ebbers and Scott Sullivan, both of whom at the time were seen as Wall Street’s “wonder boys” — the most acclaimed CEO and CFO of their time, respectively.

Regarding his time working alongside these high-profile executives, Caruso shares: “I was fortunate to have enough insight and business sense to realize something was amiss. That instinct led me to leave WorldCom earlier than I had originally planned. In doing so, I left unvested stock options behind to reunite with the quickly regathering team that had originally founded MFS.”

With this seasoned team coming back together and choosing to carve their own niche, they saw potential in Colorado. “We founded and launched Level 3,” Caruso says, “but it wasn’t easy to walk away from that equity. When I left, the equity doubled in value and I felt pretty foolish… Thankfully, I listened to my gut.”

His instincts proved wise. Over the next couple of years, WorldCom’s accounting fraud was revealed, the result of which led to Ebbers and Sullivan eventually being sentenced to prison. WorldCom went bankrupt and the equity Caruso had walked away from plummeted to nothing. “Let me tell you,” Caruso adds with a relieved smile, “I didn’t feel so foolish anymore!”

Taking Lead

In the late nineties, as the “fiber boom” and “dot com” era were entering full swing, Level 3 Communications began to take shape, marking new territory for Dan. Fresh from his experience at WorldCom, and with hard-won lessons in trusting his instincts, Caruso and Level 3 other founders assembled a trusted and experienced team. They entered the telecommunications industry ready to take on the competition, starting by building their own networks and collaborating with local inner-city and metro fiber groups.

For a time, they rode the upward curve of demand and, like many others, endured the downturn during the 2001-02 cycle — a period that Caruso feels has echoes in current events. Amid the boom, Level 3 faced numerous challenges, including a brush with bankruptcy.  “We were one of the very few who avoided bankruptcy,” Caruso recalls. “We scraped off the top of the trees and picked up momentum at the end. That was probably one of the most important parts of my career. Between 2002 and 2004, we really had to bear down and figure out how to get the company back to a solid spot. We built some strong relationships in the process, all while fighting through the trenches and emerging on the other side with a viable company.” By the end of Caruso’s tenure with the group, Level 3 had successfully navigated through the telecom meltdown.

Having narrowly avoided bankruptcy with Level 3, Caruso would face financial turbulence again at ICG, but this time as CEO. Contemplating his next move after Level 3, Dan found his next opportunity at a company on the brink of a particularly rough bankruptcy – ICG. “I was lucky enough to find a company where nobody else wanted to be CEO,” Caruso chuckles. With strong relationships established with reputable investors Columbia Capital and MC Ventures, led by industry veterans like John Siegel and Jim Fleming, Caruso and his team saw an opportunity to avoid bankruptcy altogether by buying ICG’s public stock and reworking their debt obligations.

“In closing the deal,” Caruso explains, “we took a company that was thought to be crashing face first into a Chapter 7 bankruptcy and bought it for almost nothing. We created a lot of value and ultimately exited by selling to multiple different companies, including Level 3. We invested $8.7 million and took out close to $250 million when the dust settled. It was a home run return when investors desperately needed it, as they were coming out of the telecom meltdown era. It certainly propelled us forward to come up with a thesis that would culminate in the formation of Zayo.”

This significant reversal—turning a company deep in the red into an overwhelming success—provided the financial backing to form Zayo Group. Under Caruso’s leadership at Zayo, significant and numerous acquisitions, such as AboveNet, 360networks, Spread Networks, and AFS Networks, expanded the company’s fiber network across the U.S. and steadily into Europe.

When asked what he, as the “Strategist” at the helm, considers the key factors behind Zayo’s success and what helped navigate him and his team through the challenges of such rapid expansion, Caruso reflects on the lessons of his past, the trust in his team, and an unwavering belief in the strategy they crafted together.

Caruso and his team identified an overlooked opportunity: the underestimated value of fiber. At that time, many investors viewed fiber as a toxic asset due to losses in the early 2000s. Caruso, however, saw it differently. He believed in focusing on the core infrastructure of fiber—selling dark fiber and bandwidth to large users—while avoiding higher-layer services like VoIP.

Caruso’s team noticed numerous “fiber orphans”—fiber properties that had survived the meltdown, and operated regional networks but were largely ignored by investors. The team’s strategy was to consolidate these underutilized assets under one strategic umbrella.

Many of these fiber properties had ended up with “accidental owners”—people or entities that had never intended to own such assets. Caruso’s direct approach—calling these owners and plainly offering to buy—proved effective. While these owners achieved good exits for themselves, Caruso and his team steadily built a healthy, valuable multi-geography fiber platform.

By staying focused on this “bandwidth infrastructure” approach, they built a platform reminiscent of what Level 3 had originally intended to be, before the industry trend shifted towards managed services.

“We were able to roll up these assets before most institutional investors caught on to what was happening,” Caruso explains. “We started in 2007 and accelerated while others were navigating the 2008-2009 Great Recession.  By 2012, other investors including Growth and Infrastructure Equity caught on, ‘Hey, maybe we should be consolidating fiber companies!'”

In summary, Caruso’s foresight and strategy—spotting and consolidating undervalued fiber assets under a coherent, focused bandwidth infrastructure approach—reshaped the landscape of the fiber industry, turning overlooked opportunities into a powerful network.

With a strategically constructed platform already in place, Caruso and his team found themselves on a well-timed and directed path toward their next significant venture: the acquisition of AboveNet. This key merger, Caruso recalls, elevated their relevance extensively throughout the industry, transforming them into a major player in the field.

A crucial step in this journey was navigating through the Initial Public Offering (IPO) process. Caruso notes that this step was instrumental in igniting the interest of potential investors. It generated what he remembers as a bit of “over-enthusiasm” for what they were aiming to accomplish. This buzz was a double-edged sword: while it brought a heightened interest to Zayo, it also resulted in other investors entering Bandwidth Infrastructure driving up the price of acquisitions and driving down pricing for organic revenue initiatives such as Fiber to the Tower.

“Entering the IPO process was a pivotal moment for us,” Caruso reflects. “It certainly brought a level of visibility and interest that we hadn’t experienced before. Suddenly, we were on the radar of a broader range of investors. But with this increased attention and investment came heightened expectations.”

Caruso candidly recalls how this burst of attention, while validating and energizing, also brought its own set of challenges. “It made what was relatively easy to execute in the early 2010s a lot harder to execute later on,” he explains. The influx of private equity capital created fierce competition for acquisitions and customer projects.

These were growing pains, as Caruso calls them—part of the learning curve associated with ascending through the ranks of a competitive and rapidly evolving space. Yet, throughout these challenges, Caruso and his team remained resilient and adaptable, continually learning, and refining strategies as they solidified their place as leaders in the industry.

The acquisitions of AboveNet, 360Networks, Electric Lightwave, American Fiber Systems, Spread Networks, and Allstream were watershed moments for Caruso and his team, substantially increasing their relevance in the industry. The IPO process, while generating significant interest and investment, also introduced new complexities and expectations that the team had to navigate as part of their ascension in the telecommunications space.

When asked about the importance of building towards a common goal and cultivating Zayo’s culture and ethics around transparency and open communication, Caruso emphasizes that it’s about helping various teams understand their sense of purpose. For him, this goes beyond just the company’s success—it’s about the profound impact that success has on the people involved and the ripple effects it creates.

“Zayo invested $1.1 billion of equity throughout its life,” Caruso recalls. “When we sold Zayo for $14.3 billion, the equity was worth eight and a half billion! Turning $1.1 into $8.5 billion was accomplished by an extraordinarily capable, entrepreneurial, and driven team executing a focused Bandwidth Infrastructure strategy. We delivered outstanding results for our demanding customers, created tremendous value for our investors, and enabled an exciting and lucrative journey for the broad Zayo team. This harmonious blend of success and value is rare, and we were fortunate to live that experience together.”

Caruso attributes this success to the understanding of scale and meticulous buildup of fiber and internet infrastructure, merger and acquisition competency, a culture around creating value for our stakeholders, and the strong relationships they nurtured along the way. “We did it together,” he stresses.

Reflecting on his own career journey, Caruso notes the continuity and depth of relationships he has maintained over the years. “There are people I’ve worked with across three, four, five different companies who joined the Zayo team,” he observes. “Many of them came from MFS, Level 3, ICG, and even my Ameritech days. Without building upon these core relationships, the journey I’ve had would not have been possible.”

For Caruso, the success of Zayo is deeply intertwined with purpose, strong relationships, and an unwavering team commitment. His leadership focused on fostering a culture that values open communication, a shared sense of purpose, and the nurturing of enduring professional relationships that, in his experience, have been instrumental in achieving extraordinary results.

Technology Leaps to Success

To Caruso, the future is not just bright; it’s transformative, driven by rapidly evolving technologies like Space Technology, Artificial Intelligence (AI), and Quantum Computing and Sensing.

“People have always been afraid of new technologies,” Caruso observes, drawing a line from television sets that spooked earlier generations to the unease that some feel about the internet and AI today. But to him, fear is no reason to turn back. “AI is the way forward!” he insists.

Caruso envisions a world where AI, combined with emerging technologies like quantum computing and sensing, will redefine what’s possible. “We haven’t even scratched the surface of what data will look like 10 years from now, 50 years from now,” he explains. He believes that we are at the dawn of a new era where technology will rapidly start to approach and even surpass human capabilities.

In Caruso’s view, the true power of AI lies in its ability to process vast amounts of data quickly and generate sensible results. As AI becomes more sophisticated, the volume of data it can handle, and thus produce, will proliferate dramatically.

He shares an example from the world of robotics, highlighting a company called AMP Robotics that is working on automated recycling systems. These systems need to process a multitude of data types in real-time — from visual data that helps identify materials on a conveyor belt, to weight data that helps sort these materials effectively. As these systems process more data and become more efficient, the demand for stable, reliable networks to handle this data will soar.

Caruso sees these technological leaps as integral to the telecom industry’s future. In a world increasingly dependent on data, the need for robust, reliable networks to store and access this data in real-time will be paramount.

When asked what defines success for him and what drives him to continually pursue new avenues, Caruso’s formula seems rooted in his love for innovation and his belief in the transformative potential of technology. For him, success is not just about building profitable companies; it is about fostering teams that can envision and shape the future, leveraging technology to solve complex problems and improving the world.

In today’s rapidly evolving world, the gap between ambitious individuals and those less engaged is widening, creating unprecedented opportunities for those with genuine ambition. This is particularly evident in the current economic cycle, which, despite its challenges, has sparked a wave of innovation across various fields including fintech, space tech, and medicine.  Caruso explained, “one primary example of these new tools for ambitious individuals is artificial intelligence (AI). AI is poised to be as transformative as the internet, revolutionizing productivity across all sectors. As these tools become more accessible, those who are proactive and engaged in leveraging technologies like AI find themselves at a distinct advantage. They can be remarkably more productive than their peers, effectively navigating the vast range of opportunities that our modern world offers.”

However, this also raises concerns about growing inequalities, as those who remain disengaged risk falling irretrievably behind.

“Individuals who are not actively engaged in their work or personal development may find it increasingly difficult to catch up with their more motivated peers. One of the significant risks facing young people today, especially as they emerge from the Covid era, is the adoption of less diligent work habits. In the current environment, finding a job has been easier, and flexible working environments have become more commonplace. It is essential for individuals to recognize the importance of developing their skills and expertise, thereby ensuring they are positioned to thrive in this dynamic environment.”

Dan Caruso is focused on building a legacy through a multi-generational family plan, centered around a single-family office environment. He is investing time in developing skills and capabilities in trust management and staying current with technology trends, which are integral to the family’s culture, values, and purpose. The goal is to establish a 100-year plan that considers the future for not just his life but for the next 3-4 generations as well. This long-term vision is meticulously mapped out, considering the needs and opportunities for family members who will come of age a century from now. Beyond his family-centric objectives, Caruso remains active in the entrepreneurial community, especially in Colorado. He is an investor in a diverse range of companies, including space tech, quantum, and language translation services, reflecting his love for engaging with groundbreaking technologies and innovative entrepreneurs.

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Thank you, Dan Caruso, for enlightening us and the telecoms community with your insights. While we’ve touched on a fraction of your journey as “The Foreseeing Magnate”, there’s much more to explore in the future. As this month’s Luminaries in Telecom feature wraps up, we encourage readers to share their takeaways from Caruso’s strategies and generational planning in the comments. Have suggestions for other telecom leaders to feature? Reach out to [email protected]. Until next time, thanks for joining us!