[139543] in North American Network Operators' Group
RE: Level 3 Agrees to Purchase Global Crossing
daemon@ATHENA.MIT.EDU (Holmes,David A)
Mon Apr 11 18:50:45 2011
From: "Holmes,David A" <dholmes@mwdh2o.com>
To: William Allen Simpson <william.allen.simpson@gmail.com>, NANOG list
<nanog@nanog.org>
Date: Mon, 11 Apr 2011 15:49:43 -0700
In-Reply-To: <4DA30C9D.107@gmail.com>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
"Way too many players ..." means that the telecom marketplace is good for t=
he consumer, with competition keeping prices low. Many network users feel t=
hat prices are still way too high, particularly for high speed circuits and=
dark fiber, areas in which Level 3 and Global Crossing have specialized.
-----Original Message-----
From: William Allen Simpson [mailto:william.allen.simpson@gmail.com]
Sent: Monday, April 11, 2011 7:14 AM
To: NANOG list
Subject: Level 3 Agrees to Purchase Global Crossing
http://www.bloomberg.com/news/print/2011-04-11/level-3-agrees-to-acquire-gl=
obal-crossing-in-deal-valued-at-1-9-billion.html
The deal will combine two unprofitable companies with total revenue of
$6.26 billion as of last year, and cut annualized capital spending by
about $40 million, according to the statement. It will also help reduce
the pressure on prices, which have declined by as much as 30 percent a
year in the industry, said Donna Jaegers, an analyst at DA Davidson &
Co.
"This is what telecom has needed for a long time," said Denver-based
Jaegers, who recommends buying both stocks. "You have way too many
players."
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