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?
More Blogs from Rewired
Metaswitch CTO says virtual functions implemented on IT-grade cloud infrastructure require extra engineering help to handle network volumes.
Technology guru John Donovan pledges to make AT&T's network 75% software-defined by 2020.
Board of directors allegedly wanted faster pace of change from one of the telecom industry's change pacesetters.
But what took them so long?
There's a lot happening at the network's edge, and it's worth watching.
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 Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for ...
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Cuomo Unveils Broadband Aid Program
Alan Breznick, Cable/Video Practice Leader, 1/19/2015
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive