Level 3 Backs Up Enterprise Offerings Via Cellular

October 21st, 2015 by · 3 Comments

Yesterday, Level 3 put another new product out there for the enterprise marketplace.  But this one leverages other people's networks, specifically LTE wireless networks.

It's a carrier-neutral secure cellular service aimed both at backing up VPN connectivity and providing a means for quick expansion to new locations.  No need to wait for the cable or telco guy to install lines before you open the doors.  LTE isn't going to replace that last mile fiber, but it definitely does provide an interesting supplement.

It has now been just about a year since Level 3 closed the tw telecom deal, and I'll be interested to see what Q3 numbers look like next week.  There was apparently some headcount reduction at the end of September, suggesting it was finally time for them to derive some significant SG&A synergies after taking the integration process very carefully all year.  Not fun for those affected, but I'm amazed they waited almost a full year.

 

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Categories: Fiber Networks · Financials · Wireless

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3 Comments So Far


  • toddforthree says:

    They mention doing this for a retailer who has 7,000 locations. I believe Starbucks has about 7,000 locations in the usa

    Rob, Any guess on how many of the 7,000 locations are wireless only with no fiber?

  • Morty says:

    Rob,
    They had projected 90 mil synergies from operations & 110 from network . At the end of Q2 they had achieved the 90 mil from operations & 25 from network .
    It seems to me that layoffs come under the heading of operations ! —-I believe they will announce an increase in total synergies projected . My guess is 500 laid off adding 50 mil in synergies!!!

  • Morty says:

    Rob,
    Re my previous post, It seems to have gone unnoticed that lvlt has increased their projected *TOTAL Synergies* to 245 from the original 200 ,without saying so !

    Original projections were 90 mil operations & 110 mil Network Access . They have now achieved 135 mil in Operation Synergies = 45 mil more than projected . The 110 mil # has not been changed ,35 mil have been achieved to date.
    It appears that the drive to *ONENESS* is creating less need for manpower . We may see further cuts in headcount [additional synergies] .

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