Speaking with some industry channel folks today, we got to discussing Level3. Rob Powell says it best, "The Economy Takes a Big Bite Out of Level 3". This is a company with $6B in debt compared to $4B in revenue and negative free cash flow. Everyone wondered when the BK filing woud happen.
Level3 is as much at fault as Cogent and Hurricane Electric in leading the way to pricing underwater. Plus with operational challenges they aren't creating happy customers or agents. And with the new round of layoffs, not making happy employees either.
Level 3 has posted a profit only once since 1999. With pricing dropping and economy stalled, should Jim Crowe consider filing for bankruptcy? How do they even put a dent in the debt load with revenues dropping? Operational issues are still a factor which also act as a hurdle to sales.
As an agent, I would lose revenue if they do file BK, but the truth is, I don't see how they get out from under the mountain of debt.
Level3 is as much at fault as Cogent and Hurricane Electric in leading the way to pricing underwater. Plus with operational challenges they aren't creating happy customers or agents. And with the new round of layoffs, not making happy employees either.
Level 3 has posted a profit only once since 1999. With pricing dropping and economy stalled, should Jim Crowe consider filing for bankruptcy? How do they even put a dent in the debt load with revenues dropping? Operational issues are still a factor which also act as a hurdle to sales.
As an agent, I would lose revenue if they do file BK, but the truth is, I don't see how they get out from under the mountain of debt.
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Level3 has been playing with customers for too long. First the power game in their datacenters where they are not allowing their customers to grow and forcing them to other datacenters.
This seems to be a really poor strategy, if your customers grow and need more services you cant support them and basically force them to move. All while datacenters seem mostly empty.
Next customer support and service has gone down the tubes. Even the simplist things take weeks or months to get done.
Nice work Level3.