IT survey shows more tenants demanding fiber infrastructures

Nov. 29, 2001
November 29, 2001 Sixty-four percent of businesses believe access to fiber-based data networks is 'extremely important' or 'very important.'

The rapid adoption of advanced Internet applications is driving businesses to demand access to

optical fiber networks at their office sites, according to a nationwide survey of more than 800

information technology professionals.

A large majority of those surveyed say their businesses are willing to pay a premium for office

space served by high-speed data communications infrastructure, and more than half say they might

consider relocating to new space if such infrastructure does not become available.

The survey was conducted by the San Francisco-based Yipes Communications, Inc., a provider of

scalable Ethernet services. The survey looked at the growing value of high-bandwidth connectivity

options at business locations.

Sixty-four percent of the survey participants say access to fast, fiber-based data communication

networks was "extremely important" or "very important." Twenty-four percent say they already

insist that their businesses lease space with fiber infrastructure in place to support

high-bandwidth applications, while another 41% say they will insist on such availability within

the next 12 to 18 months.

The survey updates a study published by the Building Owners and Managers Association

International in 2000. That survey, "Critical Connections," concluded that building owners

believe there is a strong connection between advanced telecom features, improved tenant retention

and marketability of their buildings.

The association report concluded, "If you are going after large office tenants, your building

must have high speed Internet capabilities."

"In today's networked economy, the old real-estate law 'location, location, location,' must be

amended to 'location, bandwidth, location,'" says Eric Yopes, principal of Foursquare Capital and

former vice chairman of Shorenstein Co., a national real estate company. "Access to fast,

flexible data networks has become as essential to many businesses as proximity to customers,

transportation and skilled labor."

"E-commerce, customer and supplier extranets, Web-based marketing, videoconferencing and a host

of other applications require ample bandwidth that only optical networks can provide," says Ron

Young, co-founder of Yipes. "More and more companies are willing to pay for access to innovative

service providers because they know that legacy phone networks just won't do the job."

For more information, contact Jonathan Marshall at 415-901-2179 or [email protected].

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