Level 3 Communications

{{Short description|Defunct American multinational telecommunications and Internet service provider}}

{{Infobox company

| name = Level 3 Communications, Inc.

| logo = Level3 Logo.svg

| defunct = {{End date|2017|11|01}}

| fate = Acquired by CenturyLink (now Lumen Technologies)

| type = Public

| traded_as = {{NYSE was|LVLT}}

| foundation = {{Start date and age|1985}}

| location = Broomfield, Colorado, United States

| key_people = James O. Ellis Jr. (chairman)
Jeff Storey (CEO)
Sunit Patel (CFO)

| industry = Telecom

| products = Mobile telephony, Internet services, Content delivery

| revenue = {{up}}US$ 8.3 billion (2015){{Cite web | url=http://www.marketwatch.com/investing/stock/lvlt/financials | title=Stock Ticker Symbol Lookup - MarketWatch}}

| operating_income = {{up}}US$ 1.3 billion (2015){{Cite web | url=http://www.marketwatch.com/investing/stock/lvlt/financials | title=Stock Ticker Symbol Lookup - MarketWatch}}

| net_income = {{up}}US$3.4 billion (2015){{Cite web | url=http://www.marketwatch.com/investing/stock/lvlt/financials | title=Stock Ticker Symbol Lookup - MarketWatch}}

| assets = {{up}}US$24.1 billion (2015){{Cite web | url=http://www.marketwatch.com/investing/stock/lvlt/financials/balance-sheet | title=Stock Ticker Symbol Lookup - MarketWatch}}

| equity = {{up}}US$10.1 billion (2015){{Cite web | url=https://finance.yahoo.com/quote/LVLT/financials?p=LVLT | title=Symbol Lookup from Yahoo Finance}}

| num_employees = 13,500

| homepage = {{url|https://www.lumen.com}}

| parent = Lumen Technologies

| footnotes =

| module = {{infobox network service provider|child=yes}}

}}

Level 3 Communications, Inc. was an American multinational telecommunications and Internet service provider company headquartered in Broomfield, Colorado. It ultimately became a part of CenturyLink (now Lumen Technologies), where Level 3 President and CEO Jeff Storey was installed as Chief Operating Officer, becoming CEO of CenturyLink one year later in a prearranged succession plan.

Level 3 operated a Tier 1 network.{{Cite web|url=http://www.level3.com/index.cfm?pageID=6|title=About Level 3|website=Level 3 Communications|archive-url=https://web.archive.org/web/20110127104733/http://www.level3.com/index.cfm?pageID=6|archive-date=2011-01-27|url-status=dead}} The company provided core transport, IP, voice, video, and content delivery for medium-to-large Internet carriers in North America, Latin America, Europe, and selected cities in Asia.{{cite web|title=Level 3 Company Profile|url=http://www.telarus.com/carrier-information/level-3-communications.html|publisher=Telecom Industry News|access-date=20 March 2012|url-status=dead|archive-url=https://web.archive.org/web/20120406041855/http://www.telarus.com/carrier-information/level-3-communications.html|archive-date=6 April 2012}} Level 3 was also the largest competitive local exchange carrier (CLEC) and the 3rd largest provider of fiber-optic internet access (based on coverage) in the United States.

On October 31, 2016, CenturyLink announced an agreement to acquire Level 3 Communications in a cash and stock transaction.{{Cite web | url=http://news.centurylink.com/news/centurylink-to-acquire-level-3-communications | title=CenturyLink to acquire Level 3 Communications}} Level 3 became part of CenturyLink on November 1, 2017.

History

=1985 to 2000=

In 1985, Peter Kiewit Sons' Inc created a subsidiary named Kiewit Diversified Group to manage the corporation's business that was not related to construction. The division was spun off as a separate entity and changed its name to Level 3 Communications in 1998 to signify an increased focus on communication services. That same year saw it make an IPO on NASDAQ. According to Level3's own history, it continued to build its telecommunications network after going public.

=2001 to 2010=

According to Level3's own history, in 2003, the company acquired Genuity, and, between 2005 and 2007, it purchased several other companies including former rivals WilTel Communications, Broadwing Corporation, Looking Glass Networks, Progress Telecom, and Telcove (formerly Adelphia Business Solutions).[http://www.level3.com/index.cfm?pageID=245 Company History: A Network Built to Support the Silicon Economics Cycle] {{webarchive|url=https://web.archive.org/web/20100409061330/http://www.level3.com/index.cfm?pageID=245 |date=2010-04-09 }} Level 3 Communications Official Site In 2004, Level 3 acquired ICG Communications' wholesale dial-up business for $35 million. Then, in 2006, Level 3 purchased the rest of ICG Communications for $163 million, taking over ICG's fiber network and nationwide Points of Presence (PoPs). It then integrated these companies through 2010.

=2010 to 2017=

On April 11, 2011, Level 3 announced a tender offer had been made to acquire fellow Tier 1 provider Global CrossingTheregister.co.uk "[https://www.theregister.co.uk/2011/04/11/global_crossing_buyout/ Level 3 pays $3bn for Global Crossing]". Apr 11, 2011. Retrieved Oct 21, 2011. in an all-stock transaction,Leena Rao, publication. "[https://techcrunch.com/2011/04/11/level-3-to-acquire-global-crossing-for-3-billion-in-stock/ Level 3 To Acquire Global Crossing For $3 Billion In Stock]." April 11, 2011. Retrieved April 11, 2011. which was approved by shareholders on August 5,Anders Bylund, Daily Finance. "[http://www.dailyfinance.com/2011/08/08/level-3-communications-plunged-what-you-need-to-kn/ Level 3 Communications Plunged: What You Need to Know] {{Webarchive|url=https://web.archive.org/web/20120926165434/http://www.dailyfinance.com/2011/08/08/level-3-communications-plunged-what-you-need-to-kn/ |date=2012-09-26 }}." Aug 8, 2011. Retrieved Aug 10, 2011. and completed on October 4, 2011. On October 20, 2011, Level 3 Communications reduced its total shares and transferred its stock listing from NASDAQ to the larger New York Stock Exchange.Denver Business Journal. "[http://www.bizjournals.com/denver/news/2011/10/20/level-3.html Level 3 completes reverse stock split, moves to NYSE]." Oct 20, 2011. Retrieved Oct 21, 2011.

On May 14, 2012, Level 3 was contracted by European content provider Voxility to provide 250 Gbit/s or more to Voxility's three main data centers in North America and Europe.{{cite news|last=Holverson|first=Austin|title=European Content Provider Voxility Selects Level 3 to Provide Global High Speed IP Connectivity|url=http://www.telarus.com/industry/european-content-provider-voxility-selects-level-3-to-provide-global-high-speed-ip-connectivity.html|access-date=14 May 2012|newspaper=Telecom Industry Updates|archive-url=https://web.archive.org/web/20120521002222/http://www.telarus.com/industry/european-content-provider-voxility-selects-level-3-to-provide-global-high-speed-ip-connectivity.html|archive-date=21 May 2012|url-status=dead}} On May 7, 2012, Level 3 was contracted by the U.S. Department of Defense's Defense Information Systems Agency to provide fiber-cable operations and maintenance, and IP-based infrastructure under a ten-year, indefinite contract with a maximum value of approximately $411 million.{{cite news|last=Chugg|first=Justin|title=U.S. Department of Defense Finalizes Selection of Level 3 for 10 year Multimillion Dollar Task Order|url=http://www.telarus.com/industry/u.s.-department-of-defense-finalizes-selection-of-level-3-for-10-year-multimillion-dollar-task-order.html|access-date=7 May 2012|newspaper=Telecom Industry News|archive-url=https://web.archive.org/web/20120521002226/http://www.telarus.com/industry/u.s.-department-of-defense-finalizes-selection-of-level-3-for-10-year-multimillion-dollar-task-order.html|archive-date=21 May 2012|url-status=dead}}

On June 16, 2014, Level 3 acquired TW Telecom, a business Internet connection provider, for about $5.7 billion.{{cite news|title=Level 3 to Buy TW Telecom for $5.7 Billion|url=https://dealbook.nytimes.com/2014/06/16/level-3-to-buy-tw-telecom-for-5-7-billion/?_php=true&_type=blogs&_r=0|access-date=16 June 2014|newspaper=New York Times| date=16 June 2014 }}

In July 2015, Level 3 acquired Black Lotus, a provider of protection against distributed denial of service (DDoS).{{cite web |title=Level 3 Acquires DDoS Mitigation Company Black Lotus |url=http://investors.level3.com/investor-relations/press-releases/press-release-details/2015/Level-3-Acquires-DDoS-Mitigation-Company-Black-Lotus/default.aspx#sthash.vrdGhHO3.dpuf |publisher=Level 3 Communications |access-date=12 July 2015}}

On October 31, 2016, CenturyLink announced its intent to acquire Level 3 in a deal valued at around $34 billion.{{cite news|title=CenturyLink, a Network Provider, to Acquire Level 3, a Rival|url=https://www.nytimes.com/2016/11/01/business/dealbook/centurylink-a-network-provider-to-acquire-level-3-a-rival.html?_r=0|newspaper=The New York Times|access-date=31 October 2016|date=2016-10-31|last1=Picker|first1=Leslie}}

On October 3, 2017, the deal was approved by the United States Department of Justice on condition of selling some of Level 3's telecom holdings in three states.{{Cite web | url=https://www.thestreet.com/story/14328661/1/centurylink-to-divest-telecom-holdings-for-approval.html | title=DOJ Tells CenturyLink to Divest Level 3 Telecom Holdings to Win Deal Approval| date=2017-10-03}} The deal officially closed and Level 3 became part of CenturyLink on November 1, 2017.

On November 1, 2017, Level 3 Communications officially merged with CenturyLink.{{cite news|title=CenturyLink completes acquisition of Level 3|url=http://news.centurylink.com/2017-11-01-CenturyLink-completes-acquisition-of-Level-3|access-date=November 2, 2017|work=CenturyLink|agency=PR Newswire (press release)|issue=November 1, 2017}}{{Cite web | url=http://news.centurylink.com/2017-11-01-CenturyLink-completes-acquisition-of-Level-3 | title=CenturyLink completes acquisition of Level 3}} As part of the merger, work was required to divest of 24 individual fiber optic lines spanning 30 city pairs as required by the US Department of Justice. Additionally, Level 3 was required to divest of metro Ethernet markets in Boise, Tucson, and Albuquerque to satisfy antitrust requirements. The company complied with the divestiture of those assets.

Operations

=Network=

File:BoiseSatelliteDish.jpg on one of its two ground stations located in Boise, Idaho ]]

Level 3 Communications operated a large network Internet, with infrastructure in 46 states in the continental United States,{{cite web |url=http://www.broadbandmap.gov/about-provider/level-3-communications,-llc/nationwide/|title=Level 3 Communications, LLC |publisher=National Broadband Map|access-date=2014-04-28}}[http://www.level3.com/en/resource-library/maps/international-backhaul-map/ International Backhaul Map] {{Webarchive|url=https://web.archive.org/web/20140429063247/http://www.level3.com/en/resource-library/maps/international-backhaul-map/ |date=2014-04-29 }} Level 3 Communications Official Site South America, Western Europe,[http://www.level3.com/downloads/European_Connectivity_Map.pdf European Back haul Map] {{webarchive|url=https://web.archive.org/web/20101010225915/http://www.level3.com/downloads/European_Connectivity_Map.pdf |date=2010-10-10 }} Level 3 Communications Official Site and some cities in Asia. It uses transatlantic cables,[http://www.level3.com/downloads/Liquidity-Express-Route-Case-Study.pdf Financial Services Case Study: Liquidity Express Route: An Information; Fast Track for Financial Services] {{webarchive|url=https://web.archive.org/web/20110713202429/http://www.level3.com/downloads/Liquidity-Express-Route-Case-Study.pdf |date=2011-07-13 }} Level 3 Communications Official Site including "Yellow" /AC-2 (on which it owned two of the four fiber pairs after Viatel Inc.'s 2001 bankruptcy).{{Cite web |url=http://www.lightwaveonline.com/business/news/level-3-acquires-viatel-transatlantic-network-assets-53473812.html |title=Level 3 acquires Viatel transatlantic assets |access-date=2011-03-11 |archive-url=https://web.archive.org/web/20111009011209/http://www.lightwaveonline.com/business/news/level-3-acquires-viatel-transatlantic-network-assets-53473812.html |archive-date=2011-10-09 |url-status=dead }} Level 3 Communications has also purchased 300 Gbit/s of capacity on the Apollo (cable system).[http://www.apollo-scs.com/transatlantic-capacity-news/2008/02/17/level-3-communications-selects-apollo/0/1/ Level 3 Communications Selects Apollo] {{webarchive|url=https://web.archive.org/web/20110707152159/http://www.apollo-scs.com/transatlantic-capacity-news/2008/02/17/level-3-communications-selects-apollo/0/1/ |date=2011-07-07 }} apollo-scs.com, 17th February 2008

At the time of acquisition by CenturyLink, it was owner of AS1WHOIS: [http://whois.arin.net/rest/asn/AS1 AS1] (following the acquisition of Genuity, from BBN Technologies), but it used AS3356 for operations. AS3356 {{asof|2007|lc=on}} consistently had one of the highest ranked connectivity degrees on the Internet.[http://www.caida.org/research/topology/as_core_network/ Visualizing Internet Topology at a Macroscopic Scale] January 2009, caida.org[http://as-rank.caida.org/ AS ranking] caida.org It also operated the former Global Crossing network (AS3549) following the company acquisition in 2011.

Level 3 Communications delivered Netflix and Apple music and video content over the Internet.[https://www.reuters.com/article/oukin-uk-level-idUKTRE7113U920110202?type=companyNews Level 3 revenue falls despite Netflix deal] reuters.com, Wed Feb 2, 2011 9:12am EST The company ran a content delivery network which it acquired from Savvis in 2006.[http://www.networkworld.com/news/2006/122606-level-3-acquires-savvis-video.html Level 3 acquires Savvis video] {{webarchive|url=https://web.archive.org/web/20120529213640/http://www.networkworld.com/news/2006/122606-level-3-acquires-savvis-video.html |date=2012-05-29 }} networkworld.com, December 26, 2006

In 2006, Level 3 Communications announced with Internet2, an academic network, that they would deploy a next generation nationwide research network.[https://lists.internet2.edu/sympa/arc/i2-news/2006-06/msg00000.html Internet2 and Level 3 Communications to Deploy Next Generation Nationwide Research Network]

In 2016, Level 3 Communications finished merging the former TW Telecom network (AS4323) into the former Global Crossing Network (AS3549) https://archive.nanog.org/sites/default/files/07-Ferguson.pdf

=Sales organization=

Level 3 distributed and sold its services through a mix of six independent sales channels: large enterprise, wholesale, federal, content and media, midmarket, and indirect. All six sales channels reported to the president of sales Andrew Crouch.{{cite news|last=Henderson|first=Khali|title=Level 3 Reorganizes NA Sales|url=http://www.channelpartnersonline.com/news/2010/07/level-3-reorganizes-na-sales.aspx|access-date=30 July 2010|newspaper=Channel Partners Online|date=30 July 2010}} The top performing Level 3 indirect sales agencies in 2010 included Intelisys, Microcorp, CDW/AVANT Communications, PlanetOne, Advantage Communications Group, Telarus, and Presidio.{{cite news|last=Henderson|first=Khali|title=Level 3 Names Top Partners for 2010|url=http://www.channelpartnersonline.com/news/2011/03/level-3-names-top-partners-for-2010.aspx|access-date=24 March 2011|newspaper=Channel Partners Online|date=24 March 2011}}

Comcast dispute

On November 11, 2010 a dispute arose between Level 3 and Comcast, when Level 3 announced that they were "selected to serve as a primary content delivery network (CDN) provider for Netflix, Inc. to support the company's streaming functionality."http://investors.level3.com/investor-relations/press-releases/press-release-details/2010/Netflix-Signs-Multi-Year-Deal-with-Level-3-for-Streaming-Services/default.aspx Netflix Signs Multi-Year Deal with Level 3 for Streaming Services Apparently, as a result of this distribution agreement, Comcast sought to renegotiate the peering agreement with Level 3 and sought a recurring fee for carrying the increased Level 3 internet traffic to and from Comcast broadband customers. Claims{{cite web |title=LEVEL 3 COMMUNICATIONS ISSUES STATEMENT CONCERNING COMCAST'S ACTIONS |url=http://investors.level3.com/investor-relations/press-releases/press-release-details/2010/Level-3-Communications-Issues-Statement-Concerning-Comcasts-Actions/default.aspx |publisher=Level 3 Communications |access-date=15 October 2018 |archive-url=https://web.archive.org/web/20161008030934/http://investors.level3.com/investor-relations/press-releases/press-release-details/2010/Level-3-Communications-Issues-Statement-Concerning-Comcasts-Actions/default.aspx |archive-date=8 October 2016 |date=29 November 2010}} and counter-claims{{cite web |last1=Waz |first1=Joe |title=Comcast Comments on Level 3 |url=https://corporate.comcast.com/comcast-voices/comcast-comments-on-level-3 |publisher=Comcast |access-date=15 October 2018 |date=29 November 2010}} were made as the two companies sought to renegotiate the contract. In December 2010, the New America Foundation submitted information concerning the dispute to the FCC.{{cite web |last1=Lennett |first1=Benjamin |last2=Losey |first2=James |last3=Meinrath |first3=Sascha |author-link3=Sascha Meinrath |title=Dear Assistant Attorney General Varney, Chairman Genachowski, and Commissioners |url=http://fjallfoss.fcc.gov/ecfs/document/view?id=7020922627 |website=fcc.gov |publisher=Federal Communications Commission |access-date=15 October 2018 |archive-url=https://web.archive.org/web/20130307070821/http://apps.fcc.gov/ecfs/document/view?id=7020922627 |archive-date=7 March 2013 |date=8 December 2010}}

On July 16, 2013, Level 3 Communications and Comcast seemingly ended their three-year dispute by issuing a statement that "Level 3 and Comcast have resolved their prior interconnect dispute on mutually satisfactory terms. Details will not be released."{{cite web |title=Level 3 and Comcast Issue Statement |url=http://news.level3.com/news-archive?item=136853 |publisher=Level 3 Communications |access-date=15 October 2018 |archive-url=https://web.archive.org/web/20161008030602/http://news.level3.com/news-archive?item=136853 |archive-date=8 October 2016 |location=BROOMFIELD, Colo. |date=26 July 2013}} On May 21, 2015, Level 3 and Comcast announced a new multi-year bilateral agreement to "enhance their existing network capacity while extending their mutual interconnection agreements, ensuring that both maintain ample capacity to exchange Internet traffic between their networks."[http://corporate.comcast.com/news-information/news-feed/comcast-level-3 Comcast and Level 3 announce long-term interconnection agreement]http://investors.level3.com/investor-relations/press-releases/press-release-details/2015/Comcast-and-Level-3-Announce-Long-Term-Interconnection-Agreement/default.aspx Comcast and Level 3 announce long-term interconnection agreement

Other disputes

In July 2013, the NSA was accused of wiretapping large parts of data on the German Internet Exchange Point DE-CIX which was denied by Level 3,[https://www.golem.de/news/nsa-skandal-wie-der-de-cix-abgehoert-wird-1308-100745.html Wie der DE-CIX abgehört wird]{{in lang|de}} and a few months later, was accused of tapping connections between Google and Yahoo data centers.[https://www.nytimes.com/2013/11/26/technology/a-peephole-for-the-nsa.html N.S.A. May Have Hit Internet Companies at a Weak Spot]