RE: level3 thoughts

["Deepak Jain" <deepak () ai net>]

> > Investigating Level3 as an upstream provider (oc12 or more).  Any
> > recommendations for or against?
> >
> > Related, what are they doing with Genuity's network?
>
> In Europe at least they're turning it off, I imagine thats true
> globally also
> where they dont need the two systems side by side.
>
> Steve

I think everywhere possible Genuity (AS1) will be a customer of Level 3
(AS3356). In areas where there isn't overlap, my guess is that L3 will sell
off/dispose of Genuity's assets. All of Genuity's datacenter operations are
gone or will be shortly. Any leased line/dial customers outside of major
cities will probably be too.

L3 can't sell its investors on how great the acquisition was by any means
other than showing the vast majority of the costs of operating a network
like Genuity's overlap with L3's already-sunk costs. The fact that both L3
and Genuity were losing money before the acquisition means both companies
have to seek to eliminate all network elements that don't meet a certain
level of profitability.

The fact that 25% of L3 (with Genuity's) network revenue will be coming from
AOL alone has seemed to escape much of everyone's notice.

Deepak Jain
AiNET