If we expected Level 3 to go quiet while it gets its integration of Global Crossing rolling, the opposite appears to be the case. Three more moves on three completely different fronts – two early integration milestones and a key contract:
A week after the completion of the merger, they have already moved to combine Level 3’s Vyvx and Global Crossing’s Genesis Solutions. This was of course not unexpected, as the combined entity will have greater global coverage, reaching 450 markets in 45 countries, as well as a wider portfolio of broadcast backhaul and managed video solutions. Of course, while the entities have been merged, there surely remains integration work before Vyvx and Genesis work together as one.
They have also issued a unified peering policy for the combined Global Crossing and Level 3 networks. This was actually put forth originally in an FCC filing over the summer in response to XO’s DOJ challenge (which was later withdrawn). It really has two purposes, to allay the fears that they might use their size in the transit marketplace to de-peer rivals to their advantage, and also to take a bit of high ground against Comcast and other last mile providers in the shifting interconnection power game.
And last, but most important if one likes actual revenue, the Texas Department of Information Resources has signed a 5 year agreement for a range of services from Level 3 including dedicated internet access, IPVPN, and Ethernet private line. They will use them to underly the services they provide to 700 agencies, schools, and enterprises state-wide. A nice contract, but can they make Rick Perry look good at a debate? Oh never mind…
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