A New European Front for Level 3

Level 3 Communications (NYSE:LVLT, news, filings) is making a move on the European enterprise marketplace.  They will now be offering their Dedicated Internet Access and VPN solutions in several European markets, including France, Germany, and the UK.  These are of course their original markets where they built out their own metro loops etc, and where they earn most of their revenue over there.  As for the expansions to the north, south, and east where they added fiber a few years back, perhaps those will come later if this effort goes well.

Level 3’s European business has always been focused squarely on wholesale, so directly targeting the enterprise segment is definitely a new thing.  It’s only a first step though, suggesting that they see opportunity out there.  In Europe the enterprise bandwidth market isn’t quite as mature as it is in the US, but there have been signs lately that it is starting to gain momentum.  A chance to grow their addressable market is something Level 3 certainly can’t turn down at the moment. Of course, there will be stiff competition both from incumbents and pan-European operators like Colt and Interoute.

While their European division has been one of Level 3’s stronger performers, the financial crisis and recession that hit in 2008 knocked it back on its heels somewhat for the past two years.  Hopefully the whole region is back in the saddle or will be soon.

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Categories: Internet Backbones