Level 3 has announced that Jeff Storey has been appointed by the Board of Directors to be Level 3's president and chief executive officer, effective yesterday. Jim Crowe is out as CEO.
Is this a good move? Under Crowe in the last 5 years, it has been nothing but pain for customers and partners. Every acquisition was an integration nightmare. (L3 isn't alone in this but that doesn't mean they have to suck at it too.)
And during the Global Crossing integration, Storey was COO and President. That wasn't smooth either. And sales haven't been off the charts either.
"Level3 reported total revenue of $1.614 billion for the fourth quarter 2012, compared to $1.590 billion for the third quarter 2012 and $1.579 billion for the fourth quarter 2011. For the full year 2012, total revenue was $6.376 billion, compared to $6.318 billion pro forma for the full year 2011." [pr]
Pricing on bandwidth has dropped, but L3, HE and Cogent led the way with that. It might be a reason the revenue is flat. Now they have to sell Gig ports everywhere, when before a fastE port would push the needle.
But now in Tampa, L3 is giving away Gog pipes at 100MB prices. How will this move the needle?
How many Gig sales are there (within 4000 feet of their fiber)?
I have to ask: What is their brand? Yeah, they power the VoIP world, but only insiders know that.
Either pick a fantastic CMO or give this new CEO 2 quarters to move revenue. Level3 has too much debt to have so little revenue growth.