Back in mid-2009, Level 3 Communications (NYSE:LVLT, news, filings) unveiled a new plan to take better advantage of its local assets by decentralizing decision-making power and investing in locally focused personnel. They went on to take the concept to several dozen markets over the next year or so, and then spent the following year turning those markets into growth engines – and touted the improving results in the mid-Market division that followed. But those markets were not the only ones it seemed as if Level 3 had the assets to tackle in this way, and so I was pleased to see them add another market to the list today.
The Pittsburgh metro area was relatively minor Level 3 market until the Telcove purchase, but is nowadays home to more than 1000 route miles of Level 3 fiber. The company has about 2000 route miles altogether in the Western Pennsylvania region, which I assume probably includes their metro footprints in Erie and Altoona/State College. Those assets will now be getting the local treatment and of course its own regional general manager, Stan Stanek.
I’m curious if this is a standalone event or if Level 3’s local experiences in the past several years have emboldened them to expand the effort to another few dozen markets. [Update: a Level 3 rep says it’s standalone, but I can hope…] Despite the company’s increased aggressiveness on the ground, their lit building count hasn’t really moved the needle all that much in the past few years. With both demand and capex rising, I’m expecting that to start changing this year.
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Categories: Metro fiber
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I believe you need a 3 in the title. 🙂
“I was pleased to see”…..”I can hope”? Sounds like you have a special place in your heart for Level 3 Rob. Quite a contrast between posts like this and when I read posts about companies like XO.
Not really. I have many hopes for XO too, they have fine assets and many good people – as I have said before. It’s just the actions of the BOD and its chairman I tend to disagree strongly with.
I think Level 3 is making moves in several local markets, just doing the right studies to maximize the benefits this time. The days of throwing money around hoping they will come is over. Now it seems the proper diligence is being applied before they act. Look for some good news in the near future. Growth should not be analyzed by the number of buildings but the customer penetration in those buildings. High value targets are more important than the number of targets.