Light Reading
One early indication of whether the tw telecom deal will bear the hoped-for fruit will be how its dynamic bandwidth capacity is handled.

Can Level 3 Execute the Perfect Merger?

Carol Wilson
8/5/2014
50%
50%

On the surface, the Level 3 Communications acquisition of tw telecom seems an ideal marriage of a company with fat fiber optic pipes and global reach and one with strong metro network connections and a solid reputation in the enterprise segment.

Factor in Level 3 Communications Inc. (Nasdaq: LVLT)'s connections to data centers and tw telecom inc. (Nasdaq: TWTC)'s dynamic bandwidth capacity services and it just keeps getting better. In a market where size and scale counts, this merger seems to have it all.

All of those complementary capabilities and synergies mean nothing, however, unless the new Level 3 can execute on the strategy of integrating the networks, trimming any overlapping facilities for maximum efficiency and retaining the best set of products going forward. And that challenge has landed right in the lap of Level 3 CTO Jack Waters. (See Level 3 CTO Jack Waters: Network Integration Guru.)

Assuming this deal is approved -- and there doesn't seem to be any chorus of voices in opposition -- its success depends on how that execution provides the sales force with a definable product advantage over the large incumbents against whom Level 3 competes, as well as giving the field office and technical support folks the tools they need to deliver quality service.


Ethernet services continue to evolve, and you can track that evolution in our Ethernet/IP news and analysis section, where we look at carrier and vendor strategies.


One thing that tw telecom developed in recent years was a reputation for excellent service and for close ties to its customers. The dynamic bandwidth control product the company has been rolling out over the last couple of years was an example of its response to customer demand.

For me, one early indication of whether Level 3 is moving in the right direction on this particular merger will be if the dynamic bandwidth control and accompanying customer portal become standard issue for Level 3's services. That's not something that can happen overnight -- it involves back-office integration that Waters admits is the hardest part of any merger. But making that a priority should be one of the first post-merger statements.

In a recent conversation with Light Reading, Waters played his cards close, not tipping his hand on what services will emerge, given that the merger has not yet gone through. Find the report from our chat here in our Prime Reading section and rest assured that once the merger does go through, we'll be watching.

— Carol Wilson, Editor-at-Large, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
8/6/2014 | 6:14:03 PM
Re: It will be interesting to see what advantages Level 3 can give tw...
It wonder if Google Fiber people are considering expanding their network in ways other than building their own... I think Google has bought dark fiber in the past. I wonder if the search giant would ever want to buy up some already lit fiber.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/6/2014 | 5:47:31 PM
Re: It will be interesting to see what advantages Level 3 can give tw...
Yeah,I don't see that happening but way to connect the dots on the news!

 
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
8/6/2014 | 5:35:13 PM
Re: It will be interesting to see what advantages Level 3 can give tw...
Not that Level3 would... but it would be kinda crazy if it (or some other backbone provider) acquired Windstream's new REIT entity for the copper and fiber (and not so much for the debt).
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
8/6/2014 | 4:16:48 PM
Re: It will be interesting to see what advantages Level 3 can give tw...
I think it's risky to ever say Level 3 is done with CLEC acquisitions but I think after this one they will take some time off from expanding their service provider footprint and, if they acquire things, are more likely to acquire targeted, more strategic properties. 

I actually think businesses are willing to look beyond the big incumbents, the question will be whether the combined L3-twt can bring scale to the quality of service twt was providing on its own.
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
8/6/2014 | 4:02:51 PM
It will be interesting to see what advantages Level 3 can give tw...
Level 3 brings a bit more scale to twtelecom.. but in wooing business customers, will that scale be enough to impress businesses who are looking at huge incumbent service providers?

Is Level 3 done with its CLEC acquisitions?
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Rewired
There's a lot happening at the network's edge, and it's worth watching.
As promised earlier this month, Verizon is letting businesses turn up network and security services on a per-workload basis.
Cloud provider backs off M&A plans, but is that the last word?
The ONF is developing standards that will let you go to school on SDN and then test for certification to prove what you know.
In the mid-80s, there were hot debates about how to power phones over non-copper lines. Guess what? Those debates are back.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
The Human Gain of the Smart Home
Robin Mersh, 10/20/2014
Zayo Zooms Out of the IPO Gate
Dan O'Shea, Managing Editor, 10/17/2014
Like Us on Facebook
Twitter Feed