Windstream got the attention of the telecom world and financial community on Tuesday when it announced that it would spin off parts of its network assets into an independent Real Estate Investment Trust (REIT). Not surprisingly, this development quickly fueled speculation that other service providers could, or are considering, a similar move.
tw telecom, which is being acquired by Level 3 Communications, reported that second-quarter 2014 revenues rose 7.8 percent to $419.7 million on strong enterprise and data and Internet segment growth.
Level 3 continued to ride the wave of enterprise growth as its enterprise Core Network Services (CNS) segment rose 11 percent to $984 million.
Level 3 has been tasked by the Department of Homeland Security (DHS) to deliver a set of local area network (LAN) managed services inside the National Capital Region (NCR).
Level 3 Communications has put together the pieces of what will be the new management team once it closes its pending $5.7 billion acquisition of tw telecom later this year. The new team will include a collection of executives from both Level 3 and tw telecom.
Interest in dark fiber has reemerged in telecom due to the escalating demands for business services and by wireless operators that need bigger backhaul pipes to keep up with the insatiable demand for wireless data.
Even if the FCC adopts rules that restrict Internet service providers from discriminating against certain types of traffic, ISPs could still circumvent the spirit of the rules by building chokepoints into their networks.
The recent public feuds between Netflix and large ISPs over streaming video quality will soon be resolved, according to Bill Wohnoutka, a VP on Level 3 Communications' solutions architecture team.
tw telecom, which is in the process of merging with Level 3 Communications, is adding more power to its Las Vegas network by extending its presence into North Las Vegas and south into Spring Valley and Henderson.
Level 3 is extending its video cloud services to the China market by signing an agreement with China Telecom Global Limited (CTG).