Level 3 takes top spot in competitive Ethernet race, says VSG

Level 3 Communications has taken the top rank in Vertical Systems Group's 2014 U.S. Competitive provider Ethernet Leaderboard, surpassing XO, Cogent and Zayo.

Similar to overtaking Verizon as the second ranking Ethernet player on VSG's 2014 U.S. Carrier Ethernet Leaderboard, Level 3's acquisition of tw telecom helped it advance its spot in the competitive Ethernet market.

Rick Malone, principal at Vertical Systems Group, said that even though the Level 3/tw telecom deal was a game changer, a number of competitive providers increased their Ethernet businesses.

"While the Level 3 acquisition of tw telecom garnered a lot of industry attention, most companies in this segment substantially grew their Ethernet businesses to gain market share in 2014."

Cogent and Zayo, in particular, continued to see Ethernet and business services growth in the fourth quarter.

Cogent reported in the fourth quarter 2014 that on-net revenue was $71.3 million, up 8 percent over $66 million in the fourth quarter of 2013. Likewise, Zayo said that its revenues rose 4 percent sequentially to $323.9 million in its second fiscal quarter.

In addition to these four providers, VSG said it continues to see Ethernet growth from over 18 other competitive and regional ILECs including: Alpheus Communications, American Telesis, Birch Communications, EarthLink Business, Expedient, FiberLight, Fibertech, Global Cloud Xchange, Integra, Lightower, LS Networks, Lumos Networks, Masergy, MegaPath, Sprint, TelePacific, Telstra and US Signal.

For more:
- see the release

Editor's Corner: 5 reasons why AT&T, Verizon should see Level 3 as bigger business services threat

Related articles:
AT&T, Verizon remain top incumbent Ethernet providers, says VSG
VSG: Level 3's tw telecom acquisition helps it surpass Verizon in Ethernet race
AT&T battles legacy losses with U-verse gains, but sets focus on profitable customers
Verizon's FiOS growth continued to cushion the blow of wireline revenue declines in Q4

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