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They connect business clients to larger networks, allowing data and Internet traffic to be transmitted at ultra-fast speeds through thin filaments of glass.Level 3, a Colorado-based company which narrowly avoided bankruptcy in the early 2000s, put an exclamation point on its long climb back from near death with the $5.65 billion acquisition last week of tw telecom Inc a merger which will connect 35,000 commercial buildings nationwide to its fiber network. Analysts expect Level 3 to report an annual profit this year for the first time in 16 years. The acquisition of tw telecom, a joint venture between US West and Time Warner founded in 1993, wasn t the first such fiber oriented deal and won t be the last, analysts and industry bankers said. The market for corporate customers voice and data services has been estimated by analysts to be worth anywhere from $57 billion to $100 billion in revenue per year. There s an unstoppable demand for bandwidth so that s behind this and there s been a lot of consolidation. It s a business that works on scale, said IDC analyst Mark Winther. Fiber network provider Zayo, a company that Reuters previously reported is pursuing an initial public offering, says it has bought 25 companies including AboveNet in 2012 for $2.2 billion - since it was founded in 2007, according to its website. And Zach Nebergall, the vice president of Dark Fiber Strategic Product Group at Zayo said he expects Zayo to keep acquiring companies as long as they aren t overpriced.Among other private companies, Fibertech, owned by Court Square Capital, could be a candidate for sale, industry bankers said. Lightower, which buyout shop Berkshire Partners bought in 2012, is another sale or IPO candidate, the people said. Representatives from Court Square Capital, which owns Fibertech, and Berkshire Capital, which owns Lightower declinedto comment on their exit plans, while Zayo declined to comment on IPO plans. Cable and telecom companies could also become bigger buyers for fiber assets. Time Warner Cable spent $600 million in cash on DukeNet, a regional fiber optic network in the Carolinas co-owned by Duke Energy in October.Winther said so-called enterprise clients, which are the biggest corporate customers and include everything from financial institutions to hospitals, are tough negotiators on price, so the way providers can maintain margins is by getting bigger. Sunit Patel, chief financial officer of Level 3, said it could cost between roughly $50,000 to $150,000 to connect a large client, with the investment paid off quickly - within six months to two years, depending on the length of the contract. 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