Level 3 to buy TW Telecom $5.7B

[bigsnake49]

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

 

 

[COZisBack]

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"?

[bigsnake49]

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.

[swintec]

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?

[bigsnake49]

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.

[caspar347]

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.

They do in Charlotte.

[COZisBack]

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.

[bucdenny]

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.

[bigsnake49]

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 June 17, 2014 by bigsnake49