Level 3's Storey: Comcast's large business unit may enable new wholesale opportunities

Level 3 Communications isn't afraid of Comcast's recent creation of a new division to serve the complex wholesale segment, and sees potential wholesale service sales opportunities with the cable MSO, according to an executive.

In creating the new division, Comcast established NNI (network to network interconnection) arrangements with a number of large MSOs including Cox Communications, Time Warner Cable (NYSE: TWC), Charter Communications (NASDAQ: CHTR), Cablevision (NYSE: CVC) and Mediacom.

However, none of those cable MSOs have access everywhere, so Comcast will have to eventually look at other third-party wholesale providers to extend their national and potentially international reach.

Speaking to investors during the Goldman Sachs' 24th Annual Communacopia Conference, Jeff Storey, CEO of Level 3, said that it can be a partner for Comcast, particularly when the operator has to fulfill multisite business needs outside of its traditional territory.

"Comcast is an excellent customer and vendor to us and we have a strong relationship with them," Storey said. "As they want to expand their abilities outside of their regions, we view that as a good opportunity for Level 3, whether it's in access, connecting long haul, dark fiber and then also going globally."

Storey added Level 3 can also serve as a partner for cable to fulfill international needs, something that will also become a requirement if Comcast wants to compete effectively against other large telcos such as AT&T and Verizon, which have sizeable national and international footprints.

"If they are actually going to compete for large customers, they are going to have to have global capabilities and we have opportunities to deliver global capabilities," Storey said.

For more:
- listen to the webcast (reg. req.)

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