Level 3 Expands South of the Border

November 14th, 2011 by · 3 Comments

Continuing its integration of the Latin American assets of Global Crossing, Level 3 Communications (NYSE:LVLT, news, filings) today announced capacity upgrades as well as additional service deployments in Mexico.  That means waves, private line, IP transit, Ethernet WAN, IP VPN, and Ethernet local access – the core of the company’s portfolio – are now available south of the border to multinational customers, and others of course.

Level 3’s Mexican infrastructure consists of a 3484km fiber ring connecting Monterrey, Mexico City and Mazatlan to Guadalajara, and from there to the company’s Pan-American Crossing submarine cable up to California.  It derives entirely from Global Crossing’s assets, as Level 3 never really dabbled at all in Mexico prior to October 4.

What is still missing though, it seems to me, is a connection between Monterrey and Level 3’s presence in South Texas.  Two years ago, they upgraded those routes trumpeting their strategic border position.  Seems like the ability to run a NYC/Mexico City wavelength service directly through Texas rather than the Pacific Ocean would have latency advantages.

The Mexican market is of course not an easy one to break into, with Carlos Slim always looming large.  One step at a time though.

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Categories: Internet Backbones

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3 Comments So Far

  • CarlK says:

    As if it was not bad enough to have been burdened with century old telephone monopolies as well as decades old cable dictators in the U.S.A., who have blocked innovation and progress wherever they could while continuing to do so, especially slowing down fast speed internet connections which would allow the world to express themselves more freely, now we have Carlos Slim, “El Grande, Gordo Lobo,” to worry about?

    When will the tyranny end so that Level 3 no longer needs to be afraid of big, bad, fat or otherwise, WOLVES? One country, and one superior, citizen internet connection at a time 🙂

    Don’t be scared, Rob!

  • Anony says:

    Good idea to build the Monterrey to South TX leg. Who would supply air cover for the construction crews though? The Mexican Army or the US Army? Seriously

  • schmuckinsurance says:

    These guys have a lot of irons on the fire for the 3-4% proforma revenue growth Citigroup estimates for the next 3 years. For years, the company has been overly rosy on guidance to keep the debt holders at bay and refinancing in markets when it they were taken with bouts of euphoria.

    Given Storey/Sunit’s new communication approach(of not over promising), you would think they are finally running the company for shareholders instead of bondholders but it undoubtedly is unfamiliar to shareholders which still makes it uncomfortable.

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