Tuesday, April 10, 2007

L3 Buys More Metro

The headline says it all: Level 3 Buys Certain AT&T Assets.

The acquired assets consist of indefeasible rights of use for dark fiber connections to over 200 buildings and more than 1,600 metro fiber route miles in six of the 11 markets where ATT was required to divest certain assets. Level(3) will acquire the divested fiber assets in Detroit,Hartford, Kansas City, Milwaukee, San Francisco and St. Louis. The company also retains intermediate splice rights, which will enable it to add new buildings to the acquired assets.

GigaOm has this input:

Today the company announced that it has bought metro assets from AT&T in six markets: Detroit, Hartford, Kansas City, Milwaukee, San Francisco and St. Louis. The price of the deal wasn’t disclosed. While we understand Level 3’s motivation to get into the metro services, it is not a slam dunk. It faces tough competition from smaller, more nimble rivals such as Yipes. Ma Bell was supposed to divest assets in 11 markets as a pre-condition for the the SBC-ATT merger.

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