NTCA's The New Edge » Level 3

Level 3 to Acquire Global Crossing

Jesse Ward — Mon, 11 Apr 2011 19:22:51 +0000

Level 3 Communications Inc. announced today that it has entered into a definitive agreement to acquire Global Crossing in an all-stock transaction valued at $3 billion, based upon Level 3’s closing stock price on April 8, 2011.

The combined backbone provider will operate fiber optic networks on three continents connected by long-haul fiber assets and undersea facilities. The new company will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries.

The transaction will create a company with the ability to meet local, national and global customer requirements in a wide range of markets. The new entity will offer enterprise, government, wholesale, content and small and large Web-based customers a comprehensive portfolio of end-to-end data, video and voice solutions.

Under the terms of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. The transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0 billion including the assumption of approximately $1.1 billion of net debt as of Dec. 31, 2010. The combined entity will create a company with revenue of $6.26 billion and earnings of $1.57 billion, after taking into account projected cost savings.

“This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing,” said Jim Crowe, chief executive officer of Level 3. “The complementary fit between the two companies’ networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers.”

For more, see the merger website. View this map of the combined network assets.

Google Voice Offers Number Portability, User Stats

Jesse Ward — Mon, 02 Nov 2009 12:02:17 +0000

Google Voice announced last week that it is now offering number portability, potentially broadening the appeal of the nascent and controversial service.

Previously users of Google Voice had to adopt a new Google phone number. However, consumers can now utilize their existing mobile phone numbers and gain access to Google Voice, albeit a select group of features.

In related news, Google mistakenly revealed confidential information last week in its filings at the FCC. Although later redacted from the documents, Business Week managed to get ahold of the originals before Google acted upon the error and replaced the documents originally made public.

The invitation-only Google Voice app has grown to 1.419 million users — 40% or 570,000 of whom use the service every day. In comparison, when Google first acquired the service from GrandCentral there were only ‘tens of thousands’ of users.

Google also revealed its list of industry partners that enable the Google Voice app: Level 3 Communications, Global Crossing, Broadvox Communications, Bandwidth.com, and Pac-West Telecomm are all involved.

IBasis, an international voice carrier and wholesale provider, is responsible for connecting outbound international calls, and Neustar provides “porting and carrier lookup services.” Syniverse Technologies provides the free text-messaging service.

Learn more about Google Voice.
Read the Business Week article.

Level 3 Enters Wireless Backhaul Market

Jesse Ward — Mon, 26 Oct 2009 15:45:01 +0000

Level 3 Communications announced last week that it is entering the wireless backhaul market with the launch of Level 3 Tower Access, a new service that offers direct wireless tower connectivity to the Level 3 network.

The new service allows a wireless carrier to backhaul its voice, data and Internet services, and scale its network capabilities as mobile bandwidth and end-user demand grow.

Level 3 Tower Access offers wireless providers the opportunity to connect to the Level 3 IP backbone and, in some cases, the company will construct wireless towers at or near its existing network facilities.

Level 3 is billing the service as a prime competitor to rural incumbent providers. The first phase of this initiative will target unserved and underserved markets focusing on areas with the greatest concentration of end-user demand.

One aspect that could resonate for wireless operators is the fact that Tower Access offers shared infrastructure so they don’t have to build out fiber or get dedicated tower access. In fact, the company said that it is working with multiple partners to erect wireless carrier-neutral towers directly on the Level 3 network.

“Level 3 has been a key enabler of the wireless ecosystem for over 10 years,” said Sureel Choksi, chief marketing officer for Level 3. “Level 3 Tower Access offers the next evolution of our services to support wireless carriers as they keep pace with the growing consumer appetite for mobile connectivity.”

Level 3 Requests Stimulus Funds for Middle Mile

Jesse Ward — Mon, 24 Aug 2009 16:40:53 +0000

After the three largest U.S. telcos (AT&T, Qwest and Verizon) and cable operator (Comcast) announced they would abstain from filing in the first round of broadband stimulus applications, Level 3 has taken a different path, positioning itself as a neutral “middle-mile” wholesale service provider to last-mile broadband operators.

The company has applied for $15 million in grant funding. Level 3 plans to use this funding, along with an additional $5 million in its own capital, to create new access points or middle-mile connections to its network in more than 50 rural markets in six states.

“Level 3 is excited about the opportunity to provide the building blocks to expand affordable, open access to the global Internet,” said Sureel Choksi, chief marketing officer for Level 3. “The Level 3 nationwide network travels through many of the unserved and underserved communities targeted for improved broadband, positioning Level 3 to play a crucial role in expanding broadband access now and into the future.”

Learn more.