Can Level 3 Communications Take Advantage Of The Opportunity Laid Before It?


This article examines the past and future growth of the internet and how the future could be the catalyst Level 3 Communications (LVLT) was built for along with an evaluation of LVLT.

BACKGROUND:

When LVLT network was constructed around 2000-2001 it built the world’s most advanced communications platform. It is the first network to be completely optimized for advanced IP (Internet Protocol) technology and the first to be fully and continuously upgradeable. Unfortunately others had the same idea and it was becoming obvious there was a bandwidth capacity glut caused by a serious overinvestment in long-haul network capacity leading to extreme price declines that fueled bankruptcies. Why the massive build outs and investments?  Internet growth was projected to double every 100 days and no one seemed to question it.  In reality these forecasts were garbage and when reality set in investors paid a high price.

Industry consolidation was inevitable.  LVLT started with the acquisition of Genuity in 2003. Then beginning with the late-2005 acquisition of WilTel, Level 3 has established itself as an industry consolidator. During 2006, the company went on to acquire Progress Telecom, ICG, TelCove and Looking Glass Networks. In 2007, Level 3 acquired Broadwing, the Content Delivery Network services business of SAVVIS, Inc. and Servecast. The game changer for LVLT was the acquisition of Global Crossing completed on Oct. 4, 2011.

In short the Global Crossing acquisition about doubled the size of the company in terms of revenue, …Click Here To Continue To The Entire Article…

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