Level 3 Hooks Up At CENX

January 25th, 2010 by · 4 Comments

Level 3 Communications (NYSE:LVLT, news, filings) announced this morning that it has connected to CENX, the Carrier Ethernet exchange started by Nan Chen of the Metro Ethernet Forum and opened for business in November.  The connection will allow Level 3 to service more customers more quickly than before, assuming of course that the exchange gains critical mass amongst network providers.  It was just a week ago that it was Verizon (NYSE:VZ, news, filings) Business joining CENX to extend its own Ethernet reach.  Given the attention from both next generation and traditional carriers, it seems clear that the concept of an Ethernet exchange does have legs.   It's a story that we'll no doubt see develop throughout the year.

For its part, Level 3 has also signed on to participate in Equinix's similar initiative.   That suggests the company is looking at this as more than a trial.  They just want to sell more Ethernet services, and they'll work with anyone willing to be a part of that.  I get the strong sense that Level 3 is revving its engines for 2010, hiring salespeople and preparing a much needed revival of revenue growth.  Hopefully this time they'll have the traction necessary to actually move the vehicle. We'll learn more in a couple weeks when they report earnings.

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Categories: Ethernet · Internet Backbones

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4 Comments So Far


  • carlk says:

    Within this biz model, is (3) not offering a direct route for pricing in addition to the building management’s quote? If so, what effect might such a two pronged pricing system have for their sales, versus let’s say, another competitor housed in the same data center? Why wouldn’t another competitor do the same? Hope I didn’t mix this exchange concept up with pure data centers. tia

  • Justin says:

    Level 3 to Deliver Backbone Network and Wholesale Voice Services for TDS Telecom
    http://finance.yahoo.com/news/Level-3-to-Deliver-Backbone-bw-854514950.html?x=0&.v=1

    Also note that TDS Telecom owns a majority (81%) interest in US Cellular…

    Any other news out there Rob?

  • Anonymous says:

    So they gave it to Level3 in Chicago for free, as they did with verizon in NY. Even though it’s a try and buy, without a second member in each exchange location, who are they going to pass traffice to???

  • Anonymous says:

    Why is Nan Chen still allowed to be MEF President? You can’t tell me it is not a conflict of interest. How many MEF members will feel obligated to give CENX business, to secure their board positions and receive MEF awards?
    He is in a position to influence who gets MEF certification and can make it hard for competitors like Equinex.

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