tw telecom may opt for lowercase branding, but there is nothing diminutive about its ambitions in the US communications industry. Serving 75 metropolitan markets in about 30 states, the company provides data networking and Internet access, as well as local and long-distance voice services, voice over Internet Protocol (VoIP), and other communications services to midsized and large telecom-intensive businesses in such industries as health care, finance, manufacturing, and hospitality. Additionally, tw telecom serves local, state, and federal government organizations and provides wholesale services to other communications carriers and ISPs. Its commercial clients have included Washington Trust Bank and Air Liquide.
tw telecom grew its revenue for a seventh consecutive year in 2011, while its profit fell off substantially, about 21%, after a spike in 2010. Higher operating expenses, particularly sales and administrative costs contributed to the decrease in net income. The company has cited increased demand and lower churn rates attributable to customer service improvement initiatives as key drivers of growth.
tw telecom derives more than three-quarters of its business from enterprise customers, with carriers clients accounting for 21% in 2011. The remainder of the company's revenue is made up of intercarrier compensation, which tw telecom expects will continue to decline due to federal and state mandated rate reductions and other regulatory changes.
tw telecom is investing its network and facilities to meet demand for services in key markets. The company expanded its co-location facilities in Minnetonka, Minnesota in 2012 in anticipation of growth in the area. It added a data center in New York state in 2010, and opened a colocation center in Denver and expanded the capacity of a fiber optic network connecting data centers in the Phoenix area the previous year.
Established as a joint venture with Time Warner Cable in 1993, the company initially offered competitive local-exchange carrier (CLEC) for residential and business customers. It later dropped its services for the residential telecommunications market and began focusing exclusively on business customers. Time Warner sold its stake in the company in 2006. Time Warner Telecom changed its name to tw telecom in 2008. – less