Blue Cross Deepens Relationship With Level 3

July 7th, 2011 by · 3 Comments

Along with its convertible debt move earlier today, Level 3 Communications (NYSE:LVLT, news, filings) also won a renewal and expansion of one of its most visible contracts today.  The Blue Cross and Blue Shield Association (BCBSA), which provides healthcare coverage for 98 million, or perhaps 30% of the nation’s population, has signed on for another two years – we last heard news on this relationship in 2009 of course.

The BCBSA and its component companies have for many years leveraged Level 3’s voice, video, and data services, but will now tack on CDN, managed Ethernet access, and DDoS protection.  Who would DDoS healthcare?  Never mind, I don’t want to know.

Level 3 will report its second quarter earnings in several weeks as the market continues to anticipate the company’s later transformation when the Global Crossing deal closes and the valuation equation changes radically.  However, in the short term it is organic growth that will be the focus, and they have said growth will tick upward from the first quarter.  Keeping up momentum in the key healthcare vertical is critical to those growth plans.

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Categories: Internet Backbones

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3 Comments So Far

  • Carlk says:

    Robert, did you receive a PR from (3) that I haven’t regarding the timing of their Q2 report?

    And, do you notice the lateness of reporting to the market when that date will be while comparing it to the past?

    Finally, the same principle applies to other CLECS who seem to always wait for (3) in advance of them identifying their quarterly report dates.

    (3) remains the BIG DOG on the BLOCK always seeming to wag its TAIL while the fleas are itching to know when that movement will occur.

  • Carlk says:

    You’re probably right while at the same time considering all that they have on their plates right now including Global Crossing. But it’s getting late to hear about the official date of their reporting. We may end up going down to the wire into August according to the filing time limits established by the SEC.

    I guess TWTC and CCOI won’t be able to report a day or two after (3), if they take it all the way to the wire. 🙂

    As for Enron’s xoHO, they’re always last man OUT holding up the bottom of the pit! 🙂

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