What's Up With Level3?

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

What's Up With Level3?

What's up with Level3? Not its income or free cash flow. (But its long term debt is up to $8.426B).

The acquisition of Global Crossing was going to fix all of that - or so they said. The brains behind this move forgot a few things:

  • Level3 is awful at integration! Didn't we all learn thsi before?
  • Far too many customers had both GX and L3 for redundancy. They are moving to other providers, so L3 is losing the combined revenue.
  • Repeatedly turning networks and routes up and down creates a bad overall network that customers complain about and leave.

I was going to say that at least L3 did not play around with its VoIP networks or its CDN. I can't. L3's customers suffered a huge outage in Florida recently that blackholed all the VoIP numbers and Internet traffic for over 4 hours. I know because I had customers complain - then ask for quotes on replacements.

The two sales forces plus the Channel could have equaled more, but integration; network issues; and replacement quotes have kind of squelched that fire.

Is bankruptcy now an option?


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