Cogent Communications offers a compelling sales pitch: data at the speed of light. The company operates a fiber-optic data network that serves customers in North America, Europe, and Asia. It offers dedicated Internet access and data transport services to businesses through Ethernet connections that link its 51 data center facilities directly to customer office buildings. Clients include financial services companies, law firms, ad agencies, and other professional services businesses. Cogent also sells access to its network and provides colocation management services to ISPs, hosting companies, and other high-volume bandwidth users.
Cogent does business in 191 metropolitan markets in 41 countries, serving almost 2,250 connected office buildings, most of which are multi-tenant. Its network is made up of in-building riser facilities, metropolitan optical fiber networks, metropolitan traffic aggregation points, and inter-city transport facilities.
The company has more than 56,000 route miles of intercity fiber and more than 28,100 metro fiber miles.
Cogent has offices, data centers, colocation facilities, and points-of-presence across North America and Europe. North America (mostly the US) represents more than 80% of sales with the rest in Europe.
Sales and Marketing
Cogent employs a direct sales approach that includes telemarketing.
The company generates most of its revenues from customers connected directly to its network (on-net customers), while clients served through other carriers' facilities (off-net customers) account for a quarter of revenues.
Cogent has enjoyed steady revenue growth over the past decade; overall sales increased 6% in 2015 to $404 million as its customer base grew from almost 46,000 to 53,000. Profits have been less consistent as its business is capital-intensive. Profits jumped 514% higher to $4.9 million in 2015 on higher revenue and in comparison to 2014 when tax provisions were incurred.
Cash flow from operations rose to about $84 million in 2015, compared to $73 million in 2014.
The company has said that it is focusing on expanding its on-net customers; with multi-tenant office buildings, the customer base is built in. It has also expanded its sales force to address a broader range of clients. Cogent is also investing in its network infrastructure to reach more clients in areas that represent significant concentrations of Internet traffic.
In 2015 Cogent entered into an interconnection agreements with CenturyLink, AT&T, and Verizon to expand its public IP networks.