Last month, Zayo began a regular process for employee surveys.  For those employees who participated, I’d be interested in your feedback.  If you’re up for it, send me an email on what you thought about the survey.   After reading the results, I thought I’d offer some perspective to employees.

First, I want to thank those of you who responded.  The overall response rate was 62%–which I consider good but not great.  I’d like to see us get to 80%+.  The feedback seemed candid and thoughtful, and I hope this continues with future surveys.

Second, I will offer some context on our approach to the survey.  I will comment on survey frequency, survey length, and the level of “sophistication”.

Frequency:  I believe in frequent employee surveys, as it provides an ongoing feedback loop to understand what is on the minds of employees.  As such, I asked that the survey take place monthly, but only 1/3 of our employees are asked to respond each month.  We will look at the results each month, but will tabulate them for each quarter (to address statistical significance).  Each employee will have the opportunity to respond quarterly—which gives each of you a voice to tell us whether we are preserving the positives while addressing the shortcomings.

Survey Length:  I believe in relatively short surveys, so that employees can complete relatively quickly.   My guess is that most employees spent 5 – 10 minutes.

Sophistication:  We did not hire a consultant.  We did not have an off-site to debate questions.  We did not banter around multiple different approaches.   Instead, we decided to throw something out there and, after seeing what happens, make course corrections.   One question started with “How strong…” and the choices of answers were “So So”, “Not Effective”, “Effective”, and “Very Effective”.  This is a small example of how we will modify.   More significant improvement ideas came from the employee survey comments, and we will address these as appropriate.  My main point is this—it is more important that we are instituting a forum for frequent and candid feedback than that we developed a perfect process.

Next, I want to stress how important it is to take to heart the survey feedback.   This burden starts with the heads of each of the business units, as they will see all the results and the written feedback.     Each business unit will share the quantitative results with their teams and will also summarize the written comments.  My guess is the results will cascade throughout the organization.  As you hear the feedback, please keep the following in mind:

  1. A lot of the results are positive.  Let’s focus on these as well as the constructive comments.  By calling out the positives, employees are telling us what good things they see and that these are important to them.   Let’s not take these for granted but, instead, let’s build on them.
  2. Many of the comments are constructive.  Some of these should be acted upon with a sense of urgency.  Others are probably better to put in a “wait-and-see” / “monitor” bucket.   Zayo is a very new company, and we will hit speed bumps and pot holes.  I know we hit several in 2009; with the benefit of hindsight, we probably could have avoided some of them.   At the pace we move, we know we will hit more.  The key is how quickly we recognize them and whether or not we learn from them.  The survey feedback should help us learn, so long as we reflect on the feedback and interpret it appropriately.

Finally, I want to highlight the profound opportunity we all have to shape the Zayo culture.  We are a brand spanking new company.  Lots of us have worked together before, but we have done so across many different companies such as Citynet, Onvoy, FiberNet, Level 3, MFS, ICG, etc.   Our time together at Zayo is just beginning.  As you fill out the survey or as you review the results, ask yourself what you can do to help make Zayo a great place to work.  Also, please consider that Zayo is really four autonomous companies.  Though Zayo Group as a whole will contribute to each group’s culture, the culture of the business units will diverge.  This is healthy and I encourage this.   This should be empowering, in that every employee should have a greater influence over the culture that is relevant to them.   I encourage each of you to exploit this empowerment by building on the positives and ferreting out the negatives.  If we all pitch in, we can make Zayo one of the best places to work in all of telecom.

Remember, at the end of the day, our job is to make a great return for our investors.     This is impossible if our customers aren’t enamored with the service we provide them—hence, a “customer first” attitude is entirely consistent with recognizing our responsibility to our shareholders.  Finally, and extremely importantly, employees are the key to satisfying both customers and investors.  For Zayo to excel, its employees must feel appreciated, respected, fairly compensated, accountable, and empowered.  Let’s use the launching of our employee feedback process to reflect on Zayo’s most valuable asset—its employees.


The CU New Venture Challenge is searching for the next big thing. In its second year, the CU-NVC is an interdisciplinary competition presented by entities across campus. Students and faculty alike have the opportunity to come together to create a new business idea and compete against one another in a cross campus competition in March 2010. Each participant will learn how to “think like an entrepreneur” and learn how to pitch their idea to judges acting as venture capitalists. Winners will take home a monetary prize to help begin their business.

This hands-on approach to entrepreneurship is a critical part of creating a start-up culture across CU-Boulder. Zayo has helped to sponsor the competition to help encourage entrepreneurship at CU and in the Boulder community. Previously, Zayo representatives have judged the competition.

Wednesday marks the kickoff for the 5 month process of preparing for the competition. In the coming months students will pitch their ideas to one another in the coming weeks, form teams, flush out their business ideas and begin preparing their business plans.

Silicon Flatirons provides a series of crash courses, workshops and events to prepare students and faculty for the competition. Wednesday is the official beginning of those crash courses and the focus is on “How to Pick a Business Worth Starting.” It will be followed by a “Start Up Internships” networking event. Paul Berberian, an experienced chief executive and entrepreneur who has founded and run six high-tech companies over the last 17 years, will be the speaker. Marketforce, one of Paul’s recent companies founded in 2005 is backed by Centennial Ventures (remind you of a post from last week?)

Wednesday’s crash course and networking opportunity is open to CU students, faculty and the general public. I encourage Zayo and Envysion employees to attend to show your support and to take the opportunity to network with some of the University’s top talent. The event will take place on the CU campus in the Wittemyer Court Room, Wolf Law Building, at 6:00pm, Wednesday, November 11th.


This is the last of 4 part tribute to my dear friend Terry Venezia, who passed away on Sunday, October 25th. I was given the honor of presenting an eulogy for Terry. I will share the eulogy, as I want people to know what a special person Terry Venezia was—and I hope it helps people live their lives the way Terry lived his. Terry is survived by his lovely wife Renee and his three beautiful children Jason, Jillian, and Ali.

Often when we were together, we were in a bigger group—say 10 or 12 folks. Terry was okay in a crowd, but where he shined was in one on one conversations. Terry always asked about what was going on in our lives. With Terry, these weren’t just pleasantries. He was genuinely interested. Michelle and John shared a story that resonated. This past spring, a bunch of us got together in Denver for a Bruce Springsteen concert, and we are all thankful for this time we had with Terry. Michelle and John were dealing with some things with one of their adopted sons. Terry really wanted to understand how Michelle, John and both their boys were doing. He listened. He cared. Terry was truly a compassionate person.

I’ll illustrate Terry’s compassion with a funny story. About 7 or 8 years ago, our “fishing trip” was in Aspen Colorado. I made reservations at one of Aspen’s nicest restaurants—and I didn’t hesitate to order several bottles of nice red wine. We decided to play a trick on Mark Everett—one that would set him up to think he had to pay for the entire $3,000 meal. Do you know the game credit card roulette? Everyone’s credit card in put in a basket and the one that the waitress pulls out pays the bill? Well, we rigged the game so that only Mark’s card would be sitting in the basket. And when Mark’s card was pulled, he was in a state of shock. The rest of us couldn’t get enough of this. But not the compassionate one Terry. He felt so bad that he pulled Mark aside and told him it was just a joke. Yes, Terry was compassionate.

Ron Bonfiglio shared with me a memory. Ron would take bike rides in Wisconsin with Terry and, at times, his dad. I understand Mr. Venezia would sometimes put Ron and Terry to shame. Ron recalls how Terry would always say on these bike rides how much he really missed Renee and the kids. And this is the part of Terry I most want to emphasize. More important than anything to Terry was his family. When he talked about Renee, Jason, Jillian, and Ali, he was so proud. He loved them, and he showed this to us without hesitation. As great of a friend he was to us, he was an even better husband and father to his family.

As a result of this tragic event, many of us our re-examining our own lives and we all know how much Terry needed to have the last word. And here is the last word we are hearing from Terry. It is to live by Terry’s example. Be consistent, focused, and devoted—in all areas of your life. Your work, your activities, your friends, and most importantly, your family. Terry, we miss you. We love you. You have made us better people and your memory will be with us for the rest of our lives.


This is the 3rd of 4 part tribute to my dear friend Terry Venezia, who passed away on Sunday, October 25th. I was given the honor of presenting an eulogy for Terry. I will share the eulogy, as I want people to know what a special person Terry Venezia was—and I hope it helps people live their lives the way Terry lived his. Terry is survived by his lovely wife Renee and his three beautiful children Jason, Jillian, and Ali.

Terry had a witty sense of humor. John Wharton and Michelle Krezek summarized this best. Our group has been known for being a bit rough on one another. With sarcastic and sometimes nasty remarks, we push each other until someone breaks down. If no one gets mad, the night was no fun. Terry would find a way to be part of this bantering, but never in the line of fire. He’d listen in, smile and laugh, quickly re-direct if the barbs turned toward him, but mostly just waited until everyone else exhausted themselves. Then, in a low key way, he’d deliver the funniest and most witty line. Defeated, the rest of us would know it was time to move on.

Terry was also adventurous. He liked to explore. He liked activities. He enjoyed pushing things to the limit. A couple years ago, the Krezeks, Zarollis, and Venezias went on a family vacation to Big Bear Lake—and Terry’s adventurous steak hit a new pinnacle. As explained to me, the big family activity involved the fathers jumping off the edge of a pontoon boat, onto a floating trampoline, with their boys standing on the edge, and thereby being launched high into the air and, hopefully, landing in the water. Terry, the competitive one, made sure no one’s son would be propelled higher in the air than Jason.

In my opening remarks, I commented on the strength of Terry’s character. He was confident, but never arrogant. He was dedicated and disciplined always. Mentally focused. He lived his life with a purpose. He was cool, calm, and collected. Terry was also intelligent. He is the only one of my friends who, when we’d play the game of chess, I’d worry about losing. He was always independent—always knew how to take care of himself. Yes, Terry was a very strong person.

I received a note from Julie Strain, the wife of Brian. Julie went to high school with us and knew Terry as long as we did. Here is how Julie thought of Terry: “Terry was never a judgmental person. He treated everyone with respect and was always a good listener. I imagine that he would have made a great judge if he had ever aspired to do so. He was a person you could turn to for advice without ever feeling like you were being judged. And his advice was always something that everyone respected.”

Terry was a steady, consistent and loyal friend . Not a one of us ever had to wonder if Terry would be there for us if we needed him.

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This is the 2nd of 4 part tribute to my dear friend Terry Venezia, who passed away on Sunday, October 25th. I was given the honor of presenting an eulogy for Terry. I will share the eulogy, as I want people to know what a special person Terry Venezia was—and I hope it helps people live their lives the way Terry lived his. Terry is survived by his lovely wife Renee and his three beautiful children Jason, Jillian, and Ali.

Terry had this effect on a whole lot of people in our group. To illustrate, I will do this by telling some stories, and these stories will be organized by the strong character traits that were at the core of who Terry was.

First and foremost, Terry was responsible. A group of us guys go on a “fishing trip” each year—a trip which involves a bunch of things but not fishing. Most of us in the fishing trip gang like to “partake”. There is a favorite joint we go to, called the Minturn Saloon, about 15 minutes from my place in Beaver Creek. At the Saloon, they serve margaritas by the pitcher, and we put down lots of those pitchers. As we have gotten older, designated drivers were part of our routine. Given that Terry is responsible, we’d know he wouldn’t partake in the margs as much as the rest of us. That’s good news—we’d have a logical designated driver. However, here’s the bad news. Whereas others would drive with a couple of drinks in us, Terry the responsible one wouldn’t. So Terry be the most sober but the least likely to be a designated driver. Always responsible.

Well, not always responsible. Ron, Terry, a third guy, I went camping in Lake Geneva. This was maybe after our first year of college, when the drinking age was 19 up there. One night, we left our camp sight and went to a bar. The third guy and I met a couple of lady friends and Terry and Ron returned back to the camp site. At 2am, I returned to the camp, only to find an empty site where our tent had last been. Evidently, Terry brought a b.b. gun on the trip and decided to pull it out at 1am. The camp ranger kicked Terry out of the camp and left the rest of us to sleep in a car.

Michelle Krezek and Patty Zarolli shared another story about Terry last night, one that left me quite jealous. It was freshman year of high school, and Michelle and Patty had just met. Trying to impress Michelle, Patty brings up this guy named Terry Venezia. “Patty, you got to meet this guy Terry. He is so cute. He is so funny. When he laughs, his whole head wrinkles.”

Terry was an athlete. And a good one. And a competitive one. Michelle Krezek, who ran track with Terry, reached out to Terry’s high school coach. Here is what Coach Van Dorn shared: “Terry was a tremendous athlete and competitor. What I remember most was that Terry was team orientated. Cross country is an individual sport. With Terry though, he always looked out for his teammates.”

Mark Everett recalls the last home cross country meet of our senior year. Mark, Terry, and one other runner were leading the race. Terry constantly pulled Mark along, encouraging him to keep pace. The winner’s shoot was only big enough for one of them to go through at a time. Terry veered to the right, and the other guy veered to the left—allowing Mark to take first place in his final race.

Brian Stain, who ran with Terry all four years, recalls that Terry started as the 5th best runner in freshman year. By senior year, Terry was the best. And then Terry ran Big Ten Track at Northwest, under a scholarship.

Well I am on the topic of Terry, Brian, and running, I have one more story to share. If nothing else, Marty Panega and I were cocky.
For some inexplicable reason, Marty and I concluded we could outrun Terry and Brian so long as the race was relatively short. This was after high school. Though Terry was running at a Big Ten school, we felt Brian had dropped off a bit. If Marty could stay close to Terry, I could easily outpace Brian. Did I mention Terry was competitive? Terry was all business—approaching this like race like it was the state championship. Terry and Marty were first off on the two lap race. Terry was finishing his second lap while Marty was just completing his first.

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On Sunday, October 25th, I received a phone call. One of my closest friends, Terry Venezia, passed away. It was sudden and unexpected. An avid bike rider, Terry was finishing his weekly 30 mile bike ride with his bike club. Terry wasn’t himself on that bike ride. Whereas he would usually lead the pack, on that day he would struggle to keep up. As they were coasting toward home and with most guys already splitting their separate ways, Terry was struck by a massive heart attack. Medical help was on the scene almost immediately but was of no help. Terry is survived by his lovely wife Renee and his three beautiful children Jason, Jillian, and Ali.

Services were held in Los Angeles this past Friday. I was given the honor of presenting an eulogy for Terry—and several close friends of mine and Terry’s helped me prepare it. I will share the eulogy, as I want people to know what a special person Terry Venezia was—and I hope it helps people live their lives the way Terry lived his. Due to its length, I will break it into several blog posts.

The past week was one of reflection. Terry was one of our very best friends, and he was so for over 30 years. As I reflected, a revelation hit me. The most important months of my life were in the summer of 1980—the summer before Terry and my senior year of high school. Though I’d known Terry and the others in our group prior to then, I think it was that summer that so shaped my life. And Terry was a huge part of it.

That summer, Marty Panega and I began running with Terry, Mark Everett, Brian Strain, and Ron Bonfiglio as part of the cross country team. We were humbled by how good they were, especially Terry. We saw first hand their dedication and commitment. We were envious in what they had achieved. Our senior year, Marty and I joined the team—and this showed us even more how good Terry and the guys were.

The running was only a small reason that summer was important to me. Over that summer, our gang spent a ton of time together. We’d hang out at each other’s houses. We’d play baseball at the parks. We’d go to Aurellio’s and eat pizza. For me, that summer, more than any other period, was when I built the friendship bonds that I would lean on for the rest of my life.

Terry was a step ahead of me. He was more focused on grades, and it showed. Terry knew it was important to be in school activities—in addition to cross country, he was in track and even Key Club, which by the way he got me join as well. Terry knew what he wanted to be when he grew up—a lawyer. He knew how to get the girls to like him—and he always had a pretty girl friend. Terry was always part of the group’s social activities—and his house served as a central place for us. His hair was always combed and he was always dressed sharp. Yep, Terry always had his act together. I admired this. And I was inspired by this. And as I reflected over this past week, I realized how much I owed Terry for who he was and for being a friend of mine all these years.


Zayo and Envysion employees–I encourage you to attend! I’ll be there. The event is tonight (Monday) at 6:15pm in Atlas Room 100 at the University of Colorado. For more information visit the Silicon Flatirons website.

Silicon Flatirons is a University of Colorado organization that promotes entrepreneurs, particularly in the fields of telecom and software. I have personally gotten involved with the organization. We see the CU as a major resource in our own backyard, and we want to encourage the development of the entrepreneurship.

Silicon Flatirons sponsors Entrepreneurs Unplugged. It is a forum that features successful entrepreneurs who have an informal discussion with students and business people from the greater Boulder area. Last year, guests included Sam Zell (which I attended and enjoyed immensely) and me (which I attended and enjoyed even more than the Sam Zell event).

Tonight Steve Halstedt is the feature guest. Many Zayo and Envysion employees might not realize that Steve is involved with Zayo Group. Steve is the co-Founder of Centennial Ventures, one of Zayo’s private equity investors. Steve recently took Centennial’s lead role in overseeing Zayo, as Rand Lewis—the original lead—became involved in other ventures. Steve is an active participant in Zayo’s board meetings.

Steve knows telecommunications and Internet infrastructure. Steve was chairman of Verio, Inc., a roll-up of Internet Service Providers (“ISPs”) in the 1990s. Verio became the largest web hosting company in the world. In one of the most remarkable exits of the telecom boom era, Verio was sold to NTT at a $5.5B valuation and the form of currency was cash.

Centennial was an investor in Brooks Fiber Properties, one of the early fiber-based competitors to the Baby Bells. Brooks was similar to MFS Communications, my alma mater, and like MFS was sold to Worldcom in a healthy exit.

One other example that is particularly relevant to Zayo is Centennial’s investment in Crowne Castle. Crowne is heavily involved in the ownership and operation of cell towers.

Steve was also chairman of OneComm, Inc., which was founded in 1989 by Centennial Ventures to become a leading provider of specialized mobile radio (SMR) services in the Rocky Mountain region and the Midwest. Centennial Ventures provided both seed and start-up funding and interim management. OneComm successfully completed its IPO in 1993, and merged with Nextel Communications, Inc. in 1995 at a $750 million valuation.

Before Centennial Ventures Steve was the Executive Vice President and Director of Daniels & Associates, Inc., a private communications service company involved in cable television system operations. Prior his time at Daniels & Associates, he served as a platoon leader and battalion operations officer in a U.S. Army combat engineer battalion in Vietnam. He taught computer programming at both the U.S. Army Engineer School and at Dartmouth College.

Steve received the Ernst & Young Entrepreneur of the Year Award in 1999 in the category of Supporter of Entrepreneurship, which recognizes a standard of entrepreneurial excellence. He is also the founding President of the Venture Capital Association of Colorado and has previously served on the board of the National Venture Capital Association.

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By guest blogger John Scarano a.k.a. Johnny Scannns

Thank you for the opportunity to share these thoughts with you via posts to Dan’s blog. This is the last of 5 parts of my inaugural blog series. This has been a great learning experience. You should try it (posting blogs).

A couple weeks back, I had the opportunity to present the Zayo story to the shareholders of one of our major equity syndicate members. Thus far in this short series, I’ve offered thoughts and preparation leading up to and the key messages of the presentation to Investor #6 and their key shareholders. Today’s topic: So what did I learn?

Sadly (and embarrassingly), I did not really appreciate the importance of the essential requirement to ‘make money’ until fairly late in my own career. Certainly, I’ve been fortunate to learn and experience and be accountable for nearly every aspect of the competitive telecom business at various companies. And of course it is simple; our for-profit business is just like every other for-profit business. It’s about making money (oh—did I just repeat this again?)

The point to me on this score is that as long as making money remains our chief goal, then all necessary supporting elements logically fall into line. We cannot make money without happy (i.e., well serviced) customers. We cannot have happy customers without investing in our network and services properly in order to maintain high quality services. We cannot deliver these customer requirements steadily without treating employees with respect and fairly with regard to remuneration. It is a virtuous cycle if managed properly, but the shareholder is at the top.

I fret that investment bankers or accomplished business persons who read these posts will laugh heartily about how naïve I sound. Nonetheless, my observation is that the “operators” who work in or manage businesses like Zayo’s tend to not be formally trained in banking or in the importance of managing a business FOR profit. As a result, they often overlook what might seem so obvious. I believe that most Zayo folks understand these concepts at least generally and over time will cause our overall performance to improve as we embrace them more. A metronome-like beating of this drum cannot hurt. It takes time to absorb fully. And I welcome Zayo folks (or anyone) to chime in and support or to challenge.

After this presentation experience, I cannot be happier that I have conveyed the views discussed in these posts repeatedly and will not soon stop doing so. We have chosen to work for our shareholders in order to make them money on the investment they have entrusted to us. We as employees and managers had better do a very good job. It’s that simple.

By the way, not-for-profit institutions and charities are so valuable and necessary for our society (and economy) to thrive. Please do not assume that because I talk about making money that I suggest this is all that matters in life. I am happy to talk about my own involvement in these things one day, but then I would have to create a competing blog, and… well… we already have one of those at Zayo!

In closing, it is always enjoyable to learn (and re-learn). Investor #6 (and all of Zayo’s investors) are extremely disciplined, thoughtful and conservative in their approach to managing their (and their shareholders’) money for a good return on this money. Our job is to do the same for them for the portion they have entrusted to us to manage. Pretty simple.

Thanks for your time reading these posts. And thank you, Dan, for the opportunity to do so, and for your own clear guidance which I believe is reflected by these posts. However, I am hopeful there will be no comments. This way, if I have harmed your readership volume, you will no longer ask me to post again. (Just joking of course)

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By guest blogger John Scarano a.k.a. Johnny Scannns

I am day 4 into my inaugural 5-part blog series. The topic is a presentation I gave a couple weeks back to the shareholders of one of Zayo’s private equity investors. As I prepared for the presentation, I reflected on what we are doing at Zayo and I thought it might be helpful to share these reflections with others. As an added benefit, Dan can take a week off of blog-writing and maybe do some real work for a change. :)

Today, I will offer the key messages I sought to deliver in the presentation:

1) Zayo is profitable – we make more money than we spend – by choice. That is, our capital program is enormously discretionary. If we chose to reduce investments to extend the reach of our network on behalf of our customers, we can and would return meaningful cash flow to our investors;

2) We are experienced – our leadership and working level teams have a track record of successfully navigating complexity while remaining focused on key priorities. We are able to conduct M&A and the resulting integration efforts while maintaining double digit organic growth; and,

3) We accomplish these things by way of our owned and operated bandwidth infrastructure operating platform. Bandwidth demand into the foreseeable future is unwavering. Barriers to entry are high where unique network exists. Remaining disciplined regarding how we invest our shareholders’ money, whether for inorganic or organic growth purposes will continue.

Assuming I successfully conveyed these messages, I would re-assure the investors of our investor that we are good custodians of their money.


By guest blogger John Scarano a.k.a. Johnny Scannns

Thank you for the opportunity to share these thoughts with you via posts to Dan’s blog. This is the third of 5 parts. Thus far in this short series I’ve offered thoughts leading up to the presentation to Investor #6 and their key shareholders. So how did I prepare and what did I learn?

The format for the overall presentation was for two of what are currently a dozen or so ‘portfolio companies’ to be featured with 20 minute presentations. The 100+ sized group in attendance included the entire Investor #6 partnership and support team members (about 20 people) as well as the representatives of most of the firms who have invested their money with Investor #6.

As an aside, the night before the presentation I and the CEO of the other featured business and several of the specific team members of Investor #6 had a dinner together. The CEO of the other featured business had presented many times to this same audience previously. He is a very accomplished and trusted business leader. He did not hesitate one moment when I asked his advice for the key message to deliver – “tell them how you’re going to make them money” he said. He followed up with, “what else matters?”

With prior guidance from our sponsors, I knew that it was important to present background about our industry before presenting the focused Zayo Bandwidth Infrastructure oriented business plan and status. This way there was context before diving in. And, to be sure (for those of you who know me), it was very tempting to talk in great detail about all that has transpired in our industry over the last 100 years and at Zayo in just the last two years.

Of course, the preparation objective, which was confirmed by the experienced CEO, was simple: tell them how you’re going to make them money. After all, isn’t that what really matters to shareholders and to the shareholders of shareholders?

This was the cold shower. What cash investors of any sort care about is that we make them money. How we get there is interesting but not entirely relevant (to them). Crass? Calous? Perhaps. But what else matters? Think about the stocks you yourself have sold for a loss, do you care why there is a loss? You care that you trusted someone (or some entity) to deliver a benefit to you, and this benefit was not delivered. Pretty simple.

Having taken to date nearly $260M of our shareholders’ money to manage on their behalf is the burden we at Zayo bear at this time.

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