Level 3’s Metro Makeover

5 thoughts on “Level 3’s Metro Makeover”

  1. Hmm. Seems to me Level 3 has had a very healthy metro business for some time. Perhaps not all on “owned” infrastructure, but certainly via IRU, and had many buildings on net in numerous cities. When I was with MFN they were one of our biggest competitors (as well as a customer).

    I do remember them being one of the major fiber installers in Boston in the telecom equivalent of the “big dig”.

  2. okay that is my bad, and i apologies for that. i should have been explicit in saying that this is going to be Level 3 owned fiber in the metro space. scott and annonymous – please accept my apologies.

  3. You’ve revised your blog post, but it’s still wrong. Level 3 hasn’t been rapidly diversifying into the metro business…it has been expanding its reach by buying customers and metro networks in second tier cities. Level 3 has consistently said from day 1 that their ownership of multiconduit in metro networks is often overlooked, hugely significant and makes them one of the largest local telecom companies in the USA and Europe. They wouldn’t have had to raise all the debt they did if they were only building an intercity network; they’ve always been a metro network bet. The WilTel acquisition expanded their customer base significantly, provided a decent chunk of cash flow, and extended their reach into a number of second tier metros while providing some redundancy to their intracity network links. Progress adds a bit of cash flow, expands their reach into the metro of second tier cities in the southeast. You could say Level 3 is expanding their reach to more cities, improving their gross margins, and improving their cash flow… but diversifying into metro? Nah.

  4. they have metro fiber but no money to put equipment at either end of it — even for large customers. primarily, they look interested in removing excess, compettitive capacity from the market. see, e.g., wiltel deal.

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