Level 3 Communications has a rich history that spans over two decades. It was founded in 1985 by Russell P. Rinn.
The company started out as a regional long-distance carrier in the United States, focusing on providing high-quality voice services to customers. Its early success was largely driven by its innovative approach to network design and operations.
By the mid-1990s, Level 3 had expanded its services to include data transmission and internet access. This marked a significant turning point in the company's growth, as it began to transition from a regional player to a national provider.
Level 3's growth was further accelerated by its acquisition of several smaller carriers, including Genuity and Broadwing.
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Company History
Level 3 Communications was founded in 1985 by a group of entrepreneurs who saw an opportunity to build a business that would specialize in providing high-speed data services to large corporations.
The company's early success was largely due to its innovative approach to using fiber-optic cables to transmit data, which allowed for faster and more reliable connections than traditional copper wires.
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In 1998, Level 3 went public with an initial public offering (IPO) that raised $1.2 billion, giving the company the resources it needed to expand its operations and invest in new technologies.
The company's focus on providing high-speed data services to large corporations helped it to establish a strong presence in the industry, with a network that spanned over 200 cities in North America.
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Network and Operations
Level 3 Communications operated a vast network infrastructure spanning 46 states in the continental United States, as well as several international locations including South America, Western Europe, and cities in Asia.
It used transatlantic cables, including the "Yellow" /AC-2 cable system, and had purchased 300 Gbit/s of capacity on the Apollo cable system.
Level 3 Communications was the owner of AS1, following its acquisition of Genuity from BBN Technologies, and also operated the former Global Crossing network, which it acquired in 2011.
Its network consistently had one of the highest ranked connectivity degrees on the Internet, with AS3356 ranking highly as of 2007.
The company delivered content for major services like Netflix and Apple music and video, and ran a content delivery network acquired from Savvis in 2006.
In 2016, Level 3 Communications merged the former TW Telecom network into the former Global Crossing Network, expanding its reach and capabilities.
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Network
Level 3 Communications operated a large network Internet with infrastructure in 46 states in the continental United States, South America, Western Europe, and some cities in Asia.
The company used transatlantic cables, including the "Yellow" /AC-2, on which it owned two of the four fiber pairs after Viatel Inc.'s 2001 bankruptcy. It also purchased 300 Gbit/s of capacity on the Apollo (cable system).
Level 3 Communications was the owner of AS1, following the acquisition of Genuity from BBN Technologies, but it used AS3356 for operations. AS3356 consistently had one of the highest ranked connectivity degrees on the Internet as of 2007.
The company operated the former Global Crossing network (AS3549) following the company acquisition in 2011, and delivered Netflix and Apple music and video content over the Internet.
Level 3 Communications ran a content delivery network which it acquired from Savvis in 2006, and announced with Internet2, an academic network, that they would deploy a next generation nationwide research network in 2006.
The company finished merging the former TW Telecom network (AS4323) into the former Global Crossing Network (AS3549) in 2016.
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Sales Organization
Level 3 distributed and sold its services through a mix of six independent sales channels. These channels included large enterprise, wholesale, federal, content and media, midmarket, and indirect.
The top performing Level 3 indirect sales agencies in 2010 were Intelisys, Microcorp, CDW/AVANT Communications, PlanetOne, Advantage Communications Group, Telarus, and Presidio.
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Notable Events
Level 3 Communications had a significant presence in the telecommunications industry, particularly in the western United States. They provided high-speed data and internet services to major companies like Microsoft and Google.
In 2001, Level 3 Communications went public with an initial public offering (IPO) that raised $1.5 billion. This move helped the company expand its services and build a robust network.
The company's focus on delivering high-quality services paid off, as they were recognized as one of the fastest-growing companies in the United States by Fortune magazine in 2002.
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2001 to 2010
Between 2005 and 2007, Level 3 purchased several companies, including former rivals WilTel Communications, Broadwing Corporation, Looking Glass Networks, Progress Telecom, and Telcove (formerly Adelphia Business Solutions).
In 2004, Level 3 acquired ICG Communications' wholesale dial-up business for $35 million.
Level 3 purchased the rest of ICG Communications in 2006 for $163 million, taking over ICG's fiber network and nationwide Points of Presence (PoPs).
It then integrated these companies through 2010.
In 2003, Level 3 acquired Genuity.
2010 To 2017
In 2011, Level 3 Communications made a tender offer to acquire fellow Tier 1 provider Global Crossing in an all-stock transaction.
The acquisition was approved by shareholders on August 5, and completed on October 4, 2011. Level 3 then reduced its total shares and transferred its stock listing from NASDAQ to the New York Stock Exchange on October 20, 2011.
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 on May 14, 2012.
The same year, 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 on May 7, 2012.
In 2016, CenturyLink announced its intent to acquire Level 3 in a deal valued at around $34 billion on October 31.
The acquisition deal was approved by the United States Department of Justice on October 3, 2017, on condition of selling some of Level 3's telecom holdings in three states.
As part of the merger, Level 3 was required to divest of 24 individual fiber optic lines spanning 30 city pairs, as well as metro Ethernet markets in Boise, Tucson, and Albuquerque to satisfy antitrust requirements.
Comcast Dispute
Level 3 and Comcast were involved in a three-year dispute over internet traffic that started in November 2010.
Comcast sought a recurring fee from Level 3 for carrying increased internet traffic to and from Comcast broadband customers.
The dispute arose after Level 3 announced a distribution agreement with Netflix to provide streaming functionality.
This led to Comcast renegotiating their peering agreement with Level 3.
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In December 2010, the New America Foundation submitted information about the dispute to the FCC.
The details of the dispute were highly publicized.
Level 3 and Comcast seemingly ended their dispute on July 16, 2013, after issuing a joint statement.
The statement said that the two companies had resolved their interconnect dispute on mutually satisfactory terms.
A new multi-year bilateral agreement was announced on May 21, 2015.
This agreement aimed to enhance network capacity and extend mutual interconnection agreements between Level 3 and Comcast.
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Frequently Asked Questions
What is Level 3 called now?
Level 3 Communications is now known as Lumen Technologies. It's a significant name change for a company that's still a leading provider of innovative communication solutions.
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