Level 3 does not see demand for 100G services yet

Level 3 Communications' (NYSE: LVLT) wide-reaching fiber network makes it a prime candidate for 100G optical networking, but the service provider is not in a hurry to get there.

Sunit Patel, Level 3

Patel (Image source: Level 3)

Speaking during its second quarter earnings call, Sunit Patel, CFO of Level 3, said that the sheer amount of fiber it has deployed means it can deliver plenty of bandwidth already.

Every consideration it makes for any network upgrade, including 100G, is based on a cost and margin perspective.

"The key is we're not fiber constrained like a lot of other people are," he said. "The more fiber constrained you are, the more you have to upgrade to 100 Gig, but we can ride much cheaper on 10 Gig gear so we have more degrees of freedom to light more fiber pairs up."

Patel added that when it comes "cost effective we'll deploy it."

That's not to say Level 3 isn't a 100G optical advocate.

Earlier this year, Level 3 told FierceTelecom it would launch a generally available 100G offering in North America and EMEA in the third quarter this year followed by a formal transatlantic 100G offering in the fourth quarter. In the first half of 2014, it will update its Latin America routes.

Early last year, Level 3 launched a 15,000-mile, nationwide 100G network for government and education customers and it is currently serving a few other customers on other 100G network segments.

For more:
- hear the earnings webcast (reg req.)

Special Report: Wireline telecom earnings in the second quarter of 2013

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