Level 3 Communications

Level 3 Communications was an American multinational telecommunications and internet service provider headquartered in Broomfield, Colorado. It developed from a non-construction business subsidiary of Peter Kiewit Sons' Inc. and became a standalone communications company during the late 1990s. The company adopted the Level 3 Communications name in 1998, reflecting a strategic shift toward telecommunications, network infrastructure, and enterprise connectivity, and completed an initial public offering that year. Level 3 built and acquired an extensive fiber-optic and IP network serving carriers, large enterprises, content companies, government customers, and other communications providers. Its infrastructure operated at Tier 1 level and included long-haul fiber, metropolitan networks, transatlantic capacity, autonomous systems, points of presence, and data-center interconnection. The company supplied core transport, IP transit, voice, video, content delivery, managed network services, Ethernet, colocation-related services, and network security. Its network reached much of the continental United States, Latin America, Western Europe, and selected cities in Asia. Growth was driven substantially by acquisitions. Level 3 purchased Genuity in 2003 and subsequently integrated networks and customer bases from WilTel Communications, Broadwing Corporation, Looking Glass Networks, Progress Telecom, Telcove, and ICG Communications. The acquisition of Global Crossing in 2011 expanded its international backbone and strengthened its position as a major wholesale carrier. The purchase of TW Telecom in 2014 broadened its enterprise and business-connectivity portfolio, while the 2015 acquisition of Black Lotus added distributed-denial-of-service protection capabilities. The company served multiple sales segments, including large enterprise, wholesale, federal, content and media, midmarket, and indirect channels. It was also a major competitive local exchange carrier in the United States and ranked among the country's leading fiber-based internet-access providers by coverage. Level 3 delivered content for major internet and media companies, including Netflix and Apple, through its network and content-delivery capabilities. Level 3 became involved in a prominent 2010 interconnection dispute with Comcast after being selected as a primary content-delivery network provider for Netflix streaming. The disagreement concerned traffic flows, network interconnection, and proposed recurring charges. The parties announced a settlement in 2013 and later signed a new multiyear capacity and interconnection agreement in 2015. The company also faced public controversy and scrutiny in Germany and elsewhere over allegations that telecommunications infrastructure had been used for intelligence collection; Level 3 denied certain allegations concerning interception at DE-CIX and related data-center links. On October 31, 2016, CenturyLink announced an agreement to acquire Level 3 in a cash-and-stock transaction valued at approximately $34 billion. U.S. antitrust approval required divestitures involving fiber routes and metropolitan Ethernet assets. The transaction closed on November 1, 2017, and Level 3 ceased to exist as an independent public company. Its operations were incorporated into CenturyLink, with Level 3 president and chief executive Jeff Storey becoming CenturyLink's chief operating officer and later chief executive under a planned succession arrangement. CenturyLink subsequently adopted the Lumen Technologies name, while Level 3 continued mainly as an operational and product identity within the larger network business rather than as an independent corporation.

Level 3 Communications originated in 1985, when Peter Kiewit Sons' Inc. established Kiewit Diversified Group to manage activities outside its traditional construction business. The division was separated from the parent organization and, in 1998, renamed Level 3 Communications as its activities increasingly centered on communications infrastructure. Level 3 went public on NASDAQ the same year and used the capital and corporate structure of a public company to expand its telecommunications network. During the early 2000s, Level 3 pursued a consolidation strategy in a fragmented communications market. Its 2003 acquisition of Genuity brought important backbone assets, including the historical AS1 registration associated with BBN Technologies. The company then acquired or absorbed WilTel Communications, Broadwing Corporation, Looking Glass Networks, Progress Telecom, and Telcove. It also bought ICG Communications' wholesale dial-up business in 2004 and acquired the remainder of ICG in 2006, obtaining additional fiber infrastructure and nationwide points of presence. Integration of these networks continued through the end of the decade. Level 3 operated a carrier-grade Tier 1 network using extensive fiber routes in the United States, Europe, Latin America, and selected Asian markets. It used AS3356 for much of its operating network and later incorporated the former Global Crossing network, including AS3549. Its infrastructure included transatlantic capacity and participation in major submarine cable systems. The network supported IP transit, transport, voice, video, content delivery, and enterprise services. Level 3 also operated a content-delivery business acquired from Savvis and became a key distributor of digital content for large technology and media companies. The 2011 acquisition of Global Crossing was a major turning point. It expanded Level 3's international reach and reinforced its position among the world's principal wholesale internet carriers. In 2012 the company won a long-term U.S. Department of Defense infrastructure contract covering fiber operations, maintenance, and IP-based services. It also agreed to provide substantial data-center connectivity for Voxility. The 2014 purchase of TW Telecom, a business-connectivity provider, broadened Level 3's enterprise network and Ethernet capabilities. In 2015, Level 3 acquired Black Lotus, adding specialized distributed-denial-of-service mitigation services. Level 3's role in internet traffic distribution produced a notable dispute with Comcast. After Level 3 began delivering Netflix streaming traffic, Comcast sought changes to their interconnection arrangements and compensation structure. The disagreement became part of a broader public debate over peering, paid interconnection, and network neutrality. The parties announced in 2013 that they had reached mutually acceptable terms without releasing details, and they later announced a new multiyear bilateral capacity agreement in 2015. The company also appeared in public reporting about alleged surveillance and interception of internet traffic. In 2013, allegations involving the German DE-CIX exchange and links between major technology-company data centers brought scrutiny to large backbone operators. Level 3 denied the relevant accusations. These matters were controversies and allegations rather than findings established in the supplied reference material. On October 31, 2016, CenturyLink announced plans to acquire Level 3 in a cash-and-stock transaction valued at approximately $34 billion. The U.S. Department of Justice approved the transaction in October 2017 subject to divestitures, including specified fiber routes between city pairs and metropolitan Ethernet operations in Boise, Tucson, and Albuquerque. The merger closed on November 1, 2017. Level 3's corporate identity ended as an independent listed company, and its network and service operations became part of CenturyLink. Jeff Storey, Level 3's president and chief executive, became CenturyLink's chief operating officer and subsequently its chief executive under a planned succession. CenturyLink later changed its corporate name to Lumen Technologies.

• 2017

  Level 3 becomes part of CenturyLink

  [1]Level 3 Communicationsen.wikipedia.org

  The merger closes after antitrust-related divestitures, ending Level 3's existence as an independent company.

• 2016

  CenturyLink announces acquisition agreement

  [1]Level 3 Communicationsen.wikipedia.org

  CenturyLink announces a cash-and-stock agreement to acquire Level 3 in a transaction valued at approximately $34 billion.

• 2015

  Black Lotus is acquired

  [1]Level 3 Communicationsen.wikipedia.org

  Level 3 adds DDoS protection and network-security capabilities through the acquisition of Black Lotus.

• 2014

  TW Telecom is acquired

  [1]Level 3 Communicationsen.wikipedia.org

  The transaction expands Level 3's business internet, Ethernet, and enterprise-connectivity activities.

• 2011

  Global Crossing acquisition closes

  [1]Level 3 Communicationsen.wikipedia.org

  Level 3 completes its all-stock acquisition of Global Crossing, significantly extending its international network.

• 2003

  Genuity is acquired

  [1]Level 3 Communicationsen.wikipedia.org

  The acquisition adds important backbone and network assets to Level 3's growing carrier infrastructure.

• 1998

  The Level 3 Communications name is adopted

  [1]Level 3 Communicationsen.wikipedia.org

  The business is separated and renamed Level 3 Communications as it focuses more directly on telecommunications; it also completes an IPO.

• 1985

  Kiewit establishes a diversified-business subsidiary

  [1]Level 3 Communicationsen.wikipedia.org

  Peter Kiewit Sons' Inc. creates Kiewit Diversified Group to manage non-construction activities, providing the corporate origin of Level 3.

Global telecommunications infrastructure provider focused on carrier-grade backbone connectivity, wholesale communications, enterprise networking, content distribution, and government infrastructure.

• Network infrastructure

  Tier 1 IP and internet backbone

  Level 3 operated a large carrier-grade IP network used for global internet transit and interconnection. Its AS3356 network was widely recognized for extensive connectivity, while the company also operated inherited network assets such as AS3549 after acquiring Global Crossing. The service primarily supported carriers, content providers, enterprises, and government customers rather than ordinary retail consumers.

• Enterprise and wholesale connectivity

  Fiber transport and Ethernet

  The company supplied long-haul and metropolitan fiber transport, private networking, Ethernet, and related data services. These products connected business locations, carrier networks, data centers, and internet exchanges across North America, Europe, Latin America, and selected Asian markets. TW Telecom strengthened this enterprise-oriented portfolio after its acquisition.

• Content distribution

  Content delivery network services

  Level 3 provided content-delivery infrastructure for high-volume digital media and internet services. Its network carried streaming and other online content for major providers, including Netflix and Apple. The business relied on distributed network capacity and strategically placed infrastructure to improve delivery performance to users.

• Wholesale communications

  Voice and video transport

  Level 3 offered wholesale voice, video, and communications transport for carriers and other service providers. These services used its backbone and intercity fiber systems to move communications traffic between networks and markets, forming part of the company's broader carrier-services portfolio.

• Network security · 2015

  DDoS protection

  Through its acquisition of Black Lotus in 2015, Level 3 added protection against distributed denial-of-service attacks. The capability complemented its connectivity portfolio by helping enterprise and online-service customers mitigate traffic-based attacks against internet-facing systems.

• 2013

  Allegations of network surveillance and interception

  Level 3 was drawn into public reporting and allegations concerning the interception of internet traffic at the German DE-CIX exchange and connections involving major technology-company data centers. The company denied the relevant accusations. The supplied references do not establish a legal finding against Level 3.

  Source

Read more

• 2017

  Complete antitrust divestitures for CenturyLink mergerStrategy

  Background

  U.S. antitrust authorities required asset sales to address competition concerns arising from the combination.

  Action taken

  The parties divested 24 fiber-optic lines across 30 city pairs and metropolitan Ethernet assets in Boise, Tucson, and Albuquerque.

  Aftermath

  The transaction received approval and closed, integrating Level 3 into CenturyLink.

  Source

• 2016

  Agree to be acquired by CenturyLinkM&A

  Background

  The transaction was intended to combine two large telecommunications networks and expand the resulting company's enterprise and wholesale scale.

  Action taken

  Level 3 entered a cash-and-stock acquisition agreement with CenturyLink.

  Aftermath

  After regulatory divestitures, the merger closed on November 1, 2017, and Level 3 ceased to be an independent listed company.

  Reported transaction value. Approximately $34 billion (2016 announcement)

  Source

• 2014

  Acquire TW TelecomM&A

  Background

  Level 3 aimed to strengthen its enterprise and business-connectivity position.

  Action taken

  Level 3 acquired TW Telecom, a provider of business internet and related connectivity services.

  Aftermath

  The acquisition broadened Level 3's enterprise network and Ethernet capabilities.

  Reported transaction value. Approximately $5.7 billion (2014)

  Source

• 2011

  Acquire Global CrossingM&A

  Background

  Level 3 sought greater international scale and additional backbone infrastructure by combining with another major Tier 1 carrier.

  Action taken

  It announced an all-stock tender offer, obtained shareholder approval, and completed the acquisition on October 4, 2011.

  Aftermath

  The transaction expanded Level 3's international network and added Global Crossing's network assets and operations.

  Source

1. 1Level 3 Communicationsen.wikipedia.org