Level 3 Communications

Level 3 Communications, Inc.

Company type	Public
Industry	Telecommunications, Internet services
Predecessor	Kiewit Diversified Group
Founded	1985 (1985)
Founder	Peter Kiewit Sons' Inc (as Kiewit Diversified Group)
Defunct	November 1, 2017 (2017-11-01)
Fate	Acquired by CenturyLink (now Lumen Technologies)
Headquarters	Broomfield, Colorado , United States
Area served	North America, Latin America, Europe, select locations in Asia
Key people	Jeff Storey (CEO)
Products	Transport, IP, voice, video, content distribution solutions
Number of employees	13,500 (2015)

Level 3 Communications, Inc. was a global telecommunications and Internet services company based in Broomfield, Colorado. It was eventually incorporated into CenturyLink (currently known as Lumen Technologies), with Level 3’s CEO, Jeff Storey, assuming the role of COO and subsequently CEO of CenturyLink as part of a planned leadership transition.

As an operator of a Tier 1 network, Level 3 delivered essential transport, IP, voice, video, and content distribution solutions to medium and large Internet carriers throughout North America, Latin America, Europe, and select locations in Asia. It held the position of the largest competitive local exchange carrier (CLEC) in the United States and ranked third among fiber-optic internet access providers by geographic reach.

In 2015, Level 3 reported revenues amounting to US$8.3 billion, with an operating income of US$1.3 billion and net income reaching US$3.4 billion. The company’s total assets were valued at US$24.1 billion, supported by shareholder equity of US$10.1 billion. Its workforce numbered around 13,500 employees.

On October 31, 2016, CenturyLink declared its intention to acquire Level 3 through a combination of cash and stock. The merger was finalized on November 1, 2017.

1985 to 2000

Peter Kiewit Sons' Inc established a subsidiary called Kiewit Diversified Group in 1985 to oversee businesses outside construction. This unit was spun off and rebranded as Level 3 Communications in 1998 to highlight its telecommunications focus. That same year, Level 3 launched its initial public offering on NASDAQ and continued to grow its telecom network.

2001 to 2010

From 2003 through 2010, Level 3 adopted an assertive acquisition approach by purchasing entities such as Genuity, WilTel Communications, Broadwing Corporation, Looking Glass Networks, Progress Telecom, and Telcove. In both 2004 and 2006, it acquired ICG Communications’ wholesale dial-up operations followed by their fiber network and nationwide Points of Presence (PoPs), integrating these assets to enhance its infrastructure capabilities.

2010 to 2017

In April 2011, Level 3 announced a $3 billion all-stock acquisition of Tier 1 carrier Global Crossing, which was completed by October that year. Subsequently, the company carried out a reverse stock split and transitioned its stock listing from NASDAQ to the New York Stock Exchange.

In 2012, Level 3 secured major agreements including a high-speed IP connectivity contract with European content provider Voxility and a $411 million decade-long contract with the U.S. Department of Defense’s Defense Information Systems Agency for fiber optic operations and IP infrastructure services.

Further expansion occurred in June 2014 when Level 3 acquired TW Telecom for around $5.7 billion, strengthening its business Internet service offerings. In July 2015, it purchased Black Lotus to enhance its cybersecurity capabilities against distributed denial-of-service (DDoS) attacks.

On October 31, 2016, CenturyLink announced its plan to acquire Level 3 for $34 billion. The U.S. Department of Justice approved the acquisition in October 2017 subject to conditions requiring divestitures of certain telecommunications assets across three states to alleviate antitrust concerns. The merger was completed on November 1, 2017, integrating Level 3’s operations into CenturyLink’s global network. As part of regulatory compliance, Level 3 divested fiber optic routes covering thirty city pairs and exited metro Ethernet markets in Boise, Tucson, and Albuquerque.

Network

Level 3 Communications maintained a vast Internet infrastructure spanning 46 states within the United States, as well as regions in South America, Western Europe, and select metropolitan areas across Asia. Its network included transatlantic fiber optic cables such as the "Yellow" /AC-2 system, where it controlled two out of four fiber pairs following the acquisition of assets from Viatel Inc.'s 2001 bankruptcy. Additionally, the company held a 300 Gbit/s capacity allocation on the Apollo (cable system).

Prior to its integration into CenturyLink, Level 3 possessed AS1 (acquired through Genuity from BBN Technologies), but mainly operated under AS3356, recognized globally for its exceptionally high connectivity. The firm also incorporated the former Global Crossing network (AS3549) after acquiring that company in 2011.

Level 3 provided significant content delivery services to major clients such as Netflix and Apple, leveraging a content delivery network it obtained from Savvis in 2006. That same year, it collaborated with Internet2 to implement an advanced nationwide research network infrastructure.

In 2016, Level 3 finalized the integration of the former TW Telecom network (AS4323) into the Global Crossing network (AS3549), thereby expanding its global footprint and strengthening market presence.

Sales organization

Level 3 marketed its offerings through six distinct sales segments: large enterprise, wholesale, federal government, content and media, midmarket, and indirect channels. Among the leading indirect sales partners in 2010 were Intelisys, Microcorp, CDW/AVANT Communications, PlanetOne, Advantage Communications Group, Telarus, and Presidio.

Comcast dispute

In November 2010, Level 3 entered into a multi-year agreement to serve as a primary content delivery network (CDN) provider for Netflix's streaming platform. Subsequently, Comcast sought to renegotiate their peering arrangement with Level 3 by proposing recurring charges tied to increased internet traffic exchanged between their networks. Both parties made public statements asserting their respective positions during these negotiations. The New America Foundation submitted relevant information regarding this conflict to the FCC in December 2010.

On July 16, 2013, Level 3 and Comcast reached a resolution to their three-year interconnection disagreement under mutually agreeable conditions; however, specific terms were not revealed. Later in May 2015, they announced a renewed multi-year bilateral contract aimed at expanding network capacity and extending interconnection agreements to guarantee adequate bandwidth for internet traffic exchange.

Other disputes

In 2013, allegations emerged accusing the NSA of intercepting substantial data flows at the German Internet Exchange Point DE-CIX, claims which Level 3 publicly refuted. Later that year, the NSA was similarly accused of tapping communication links between Google and Yahoo data centers.

See also

• List of United States telephone companies