Level 3 Communications has announced that they will be buying the former Time Warner Cable internet service for enterprise division (TW Telecom) for $5.6 billion ($7.3 billion with debt), further increasing their size and scope. Some news sites have made the mistake saying that Level 3 Communications is buying Time Warner Cable, which is simply not correct. TW Telecom was started as a joint venture between Time Warner Cable and US West which is now a part of Centurylink. However, TW Telecom has operated as an independent entity for quite some time and is publicly traded on the NASDAQ as TWTC.
The deal is currently structured as 24% cash and 76% stock (in Level 3 Communications) and will come to a total sum of $7.3 billion after the purchase price and debt are accounted for. We already know that Level 3 Communications is quite a big tier 1 ISP because they stated how many different companies they serve when they talked about the problems they’ve been encountering with US ISPs. If you read our article about it, you will find out that Level 3 Communications currently has something like 180,000 miles of fiber laid around the world and has a total interconnect capacity of nearly 14 Tbps.
Adding TW Telecom to Level 3 Communications’ network would simply strengthen the company’s offerings and broaden their customer base, allowing them to achieve better efficiency and possibly even more importantly, be a protector of things like net neutrality. After all, if Level 3 Communications is all about making sure the internet is a fair place, it isn’t necessarily a bad thing if they’re in control of more of the internet. However, companies like Level 3 Communications may also become easier targets for hackers and governments to attack or approach in terms of getting easier access to the internet. So, as thing always are, there are both good and bad things that will come with Level 3 Communications getting better. With this deal, though, Level 3 Communications gains 27,000 route miles of fiber and over 16,000 “on-net” commercial buildings connected. As well as two National Operations Centers (NOCs) in Littleton, CO and O’Fallon, MO, where its solutions are monitored for quality 24/7/365 to assure the best and most reliable service.