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Level 3's Global Crossing buyout could save carriers, though challenges remain

Brad Reed | April 12, 2011
Level 3's proposed US$1.9 billion Global Crossing buyout will boost the carriers' global presence and enterprise services portfolio.

Even so, Johnson says that there's no guarantee the deal will be a smash hit. After all, she notes, the acquisition will still leave Level 3 without a real strategy for wireless data that is becoming essential for any ISP. On top of this, she says that mergers on this scale rarely go off as planned and that Level 3 faces key decisions regarding its personnel moving forward.

"If they can execute on it, it should be good for business customers, but executing on mergers and acquisitions is horribly difficult," especially when it comes to figuring out which employees should stay or go, she says.

Global Crossing has been moving more into the content delivery market in recent years, as it signed a deal in 2009 with CDN vendors Limelight and EdgeCast that gave Global Crossing customers access to their services. And last year, the company purchased Genesis Networks, a video fiber network operator that specialized in providing end-to-end IP video transmission services for major networks.

IDG News Service contributed to this report.


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