Citing Video Demand, Level 3 Buys TelCove

Level 3 said this morning that it will pay $1 billion to acquire TelCove, a broadband provider formed from the ruins of Adelphia that owns 22,000 miles of data-transmission lines serving 70 markets. In the past six months, Level 3 has now acquired WilTel Communications, Progress Telecom and ICG Communications.

What’s driving the growth and need for capacity? “Over 50% of the traffic on our network is video,” Level 3 Chief Executive James Crowe told the Wall Street Journal. “That is what’s driving traffic. It’s no different than the economy broadly. Broadband adoption is the enabler.”

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About the Author

Rich Miller is the founder and editor at large 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.