Level 3 Agrees to Purchase Global Crossing

Holmes,David A dholmes at mwdh2o.com
Mon Apr 11 17:49:43 CDT 2011


"Way too many players ..." means that the telecom marketplace is good for the consumer, with competition keeping prices low. Many network users feel that prices are still way too high, particularly for high speed circuits and dark fiber, areas in which Level 3 and Global Crossing have specialized.

-----Original Message-----
From: William Allen Simpson [mailto:william.allen.simpson at gmail.com]
Sent: Monday, April 11, 2011 7:14 AM
To: NANOG list
Subject: Level 3 Agrees to Purchase Global Crossing

http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-global-crossing-in-deal-valued-at-1-9-billion.html

The deal will combine two unprofitable companies with total revenue of
$6.26 billion as of last year, and cut annualized capital spending by
about $40 million, according to the statement. It will also help reduce
the pressure on prices, which have declined by as much as 30 percent a
year in the industry, said Donna Jaegers, an analyst at DA Davidson &
Co.

"This is what telecom has needed for a long time," said Denver-based
Jaegers, who recommends buying both stocks. "You have way too many
players."



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