Level 3 Expands Metro Presence in Dublin

July 29th, 2010 by · 7 Comments

Level 3 Communications (NYSE:LVLT, news, filings) announced today that it has added depth to its metro presence in Dublin, Ireland.  After being largely bypassed by bandwidth for many years, the connectivity business in Dublin has been surging mightily over the past several years as the business environment has been highly favorable to hi-tech companies for a while now.  Dublin is not a place where Level 3 has traditionally had a metro presence until quite recently.

Specifically, Level 3 was already in the Telecity data centre location on Kingswood Road, but has now brought on-net four additional major facilities:

  • eircom, Clonshaugh, Co. Dublin
  • Interxion DUB1 data centre, Park West Business Park
  • Interxion DUB2 data centre, Park West Business Park
  • Data Electronics Services, Kilcarbery Business Park

They expect to add additional data centres in the second half of the year as well.

This expansion is part of an overall effort by Level 3 to expand its reach in European markets, another example of which was its expanded connectivity to Manchester.  Perhaps they will also be entering the metro markets of some cities to which they leased dark fiber to over the past few years, e.g. Madrid, Geneva, Prague, Stockholm?

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Categories: Datacenter · Internet Backbones · Metro fiber

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7 Comments So Far

  • Bill says:

    Once again I read about new business for lvlt. At the same time gblc mentions delivering ‘telepresence’ services that appears quite a promising bandwidth service user. Yet, as an investor in both companies, I find it frustrating that revenues are perpetually flat. A few years ago the advent of HD, 3D etc was expected to drive demand for bandwidth with the expectation that CDN services etc would give these companies pricing power. The ‘telepresence’ potential is another exciting demand driver for the future.
    These companies have huge debt and a history of substantial losses. Crowe says the lvlt ‘network’ is the golden service that will pay off if we have patience. I listened to Legere on the gblc conference call and he sounded identical with respected to growing demand and pretty stable pricing patterns.
    Is there infinited supply in this competitive enviornment that will never permit these companies to grow? What am I missing?
    I really like your missives! Thanks

  • Dave Rusin says:

    I hope they find that Pot of Gold they need ….

  • Level 3 Doctor says:

    another idea would be to run their current business… since IP network use is exploding (voice, video, games, publishing, trading, etc), and they have a really large and well-peered IP/MPLS network. But, alas, they have no coherent enterprise strategy. L3 won’t compete with GBLX, Above, Cogent, etc., on price and can’t (won’t?) offer the services sold by ATT and VZB. As pointed out on this blog by a reader, their asset utilization is low.. they need more revenue, not more miles in ireland… they build into carrier hotels and data centers and then refuse to sell bandwidth at the market prices to the xSP crowd that inhabits these locations… they don’t pursue enterprises because these folks demand on time performance, SLA and contractual mods, etc. Also, they get really mad if a client dares compare them to anyone, as if they are the only company in the world that doesnt need to deal with competitive, substitutive and other market forces… good luck with that plan.

  • Parkite says:

    My experience is the opposite of the L3 Doctor. L3 will drop their pants on price, even when it is unnecessary. This behavior likely explains their low margins. Despite this pricing behavior, they are very weak in the Enterprise segment which I think is a function of poor hiring.

  • carlk says:

    Fee, Fi, Fo, Fum, I keep smelling the blood of Wall Street scum.

    There’s still lucky Irish left in this name.

    Follow Donna, and leave the rest of the reindeer alone, or the balance of you will be schooled. 🙂

  • carlk says:

    David, David, David, take it from me, nothing you say in the public domain over newswires can sway Wrong Street once their decision has been made. Sell, sell, sell, because this previous “mouse trap” has out served its customers needs moving ahead.

    The “network owner” who specializes in “large video content” files from the studio lots and media hubs is taking over!

    All I can say is, it’s about damn time!


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