Jump to content

Level 3 to buy TW Telecom $5.7B


bigsnake49
 Share

Recommended Posts

I thought that TW Telecom was a pretty big Sprint backbone customer. Plus it takes out a competitor for metro fiber loops out. Either way, it's not good for Sprint.

 

http://www.denverpost.com/business/ci_25971434/level-3-acquire-tw-telecom-5-7-billion

 

And how does this announcement make it "not good for Sprint"?

Link to comment
Share on other sites

And how does this announcement make it "not good for Sprint"?

Well first the fact that they were a customer of Sprint's Internet backbone and now they won't be and second because it will take out another supplier of backhaul out of the market.

Link to comment
Share on other sites

Well first the fact that they were a customer of Sprint's Internet backbone and now they won't be and second because it will take out another supplier of backhaul out of the market.

 

I thought it was TW cable business that provides backhaul in areas, not TW Telecom?

Link to comment
Share on other sites

I thought it was TW cable business that provides backhaul in areas, not TW Telecom?

 

TW telecom has quite a few metro fiber loops all over the staes. Whether they provide any backhaul to Sprint or not I am not aware.

Link to comment
Share on other sites

TW telecom has quite a few metro fiber loops all over the staes. Whether they provide any backhaul to Sprint or not I am not aware.

I'm still not understanding how this negatively affects Sprint.

Link to comment
Share on other sites

Maybe Sprint can sweeten the deal.  TW Telecom provides services to businesses and it would allow it back in the wire-line business.  Many of our business clients uses TW Telecom in San Diego for fiber and internet services.

Link to comment
Share on other sites

I'm still not understanding how this negatively affects Sprint.

It eliminates a competitor in the backhaul business, so prices for backhaul are expected to rise, and it also removes a customer of Sprint (TW Telecom used Sprint's Internet backbone) so it reduces revenue to Sprint.

Edited by bigsnake49
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...