Telecom News Now: Level 3 to Acquire Global Crossing for $3 Billion in Stock
Level 3 and Global Crossing both have points of presence in Lifeline Data Centers' carrier neutral data center facilities with no cross-connect fees.
Level 3 Communications (News - Alert) is buying Global Crossing, a move that will bolster the half of Level 3's business that represents retail services to enterprises and mid-market customers. About 48 percent of Level 3 Communications’ revenue is classified as "wholesale." On its own, Level 3's product mix includes 13 percent voice services, 25 percent data services, 41 percent wavelengths and private line and 21 percent dark fiber or data center services.
The Global Crossing (News - Alert) acquisition will strengthen the volume of retail sales to enterprises. Global Crossing also will bolster Level 3's operations in Europe, where Global Crossing has a big sales footprint, and add Latin American operations where Level 3 has chosen not to compete, up to this point. The Global Crossing deal also adds Asia-Pacific long-haul routes, where Level 3 has focused on North America, Europe and trans-Atlantic routes, up to this point. Right now, Level 3 operates in 23 countries, where Global Crossing operates in 70 countries.
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