Level 3 Communications is buying Global Crossing, a move that will bolster the half of Level 3’s business that represents retail services to enterprises and mid-market customers. About 48 percent of Level 3 Communicatons revenue is classified as “wholesale.” On its own, Level 3’s product mix includes 13 percent voice services, 25 percent data services, 41 percent wavelengths and private line and 21 percent dark fiber or data center services.
The Global Crossing acquisition will strengthen the volume of retail sales to enterprises. Global Crossing also will bolster Level 3’s operations in Europe, where Global Crossing has a big sales footprint, and add Latin American and Asia-Pacific operations where Level 3 has chosen not to compete, up to this point. The Global Crossing deal also adds Asia-Pacific long-haul routes, where Level 3 has focused on North America, Europe and trans-Atlantic routes, up to this point.
The deal also adds revenue bulk. In 2010, Level 3 had $3.65 billion in revenue, compared to Global Crossing with $2.6 billion in revenue.