Level 3-Global Crossing Combination Will Ease International Capacity Pricing Pressures, BMI Believes

Two of the remaining survivors of the fibre-boom era, Level 3 Communications and Global Crossing, are to merge in a transaction valued at approximately US$3bn. The combined company will operate a global services platform powered by extensive fibre-optic networks on three continents, connected by an equally extensive portfolio of submarine cable systems. BMI welcomes the deal as it will slim the crowded market for international IP transit services but, more importantly, it will provide an ideal opportunity for players to deal with the long-standing problem of oversupply, which in turn has made services unprofitable for many.

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