Is Level 3 Buying at the Bottom?

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According to telecom research firm TeleGeography, Level 3 is not just buying fiber at the bottom of the ocean, it’s buying at the bottom of the market as well. In an analysis titled 600 Billion bits Across the Atlantic, TeleGeography  says Level 3′s purchase last week of up to 600 Gbps of capacity on the Apollo trans-Atlantic submarine cable system – the single largest purchase of lit subsea capacity ever by an individual carrier – is a sign that bandwidth deals may never get better any cheaper. “This purchase is a big step by Level 3,” said TeleGeography analyst Alan Mauldin. “They recognize that prices are at unsustainably low levels and that they are confident in their networks’ need for a significant amount of additional capacity over the long-run.” You can read more at TeleGeography’s web site.

About the Author

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.