The American telecoms giant looks to expand its fibre reach with Level 3’s backbone network
American telecoms giant CenturyLink is set to buy fellow telecoms and internet service provider (ISP) Level 3 Communications for a hefty $24 billion in cash and stocks.
Once the acquisition is completed the two companies will form the second largest domestic communications provider in the world, and will give CenturyLink the scope to expand its fibre optic network and high-speed data services for its business customers.
Level 3 has traditionally been an Internet backbone focused firm, slowing lease have seen it aim its services towards small and medium sized businesses. Whereas CenturyLink has traditionally focused on bringing phone services to rural areas, but has harboured an aim to upgrade it networks with fibre optic cables so that it can compete with other industry giants like AT&T and Verizon.
By buying Level 3 is gains access to the company’s backbone, and with the latter’s business services on-bard, CenturyLink should have more reach in bringing its services to business customers.
According to CenturyLink the deal increases its network by 200,000 route miles of fibre, which includes 64,000 route miles in 350 metropolitan areas and 33,000 sub sea route miles that connect multiple continents.
“The digital economy relies on broadband connectivity, and together with Level 3 we will have one of the most robust fibre network and high-speed data services companies in the world,” said Glen Post, CenturyLink CEO.
“This transaction furthers our commitment to providing our customers with the network to improve their lives and strengthen their businesses. It is this focus on providing fibre connectivity that will continue to distinguish CenturyLink from our competitors.”
While CenturyLink look to expand its telecoms services to business customers, it seems less interested in holding on to its data centres, with it looking to sell off its data centre infrastructure as it moves away from the need to manage such assets.
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