WHITE PLAINS, N.Y., April 13, 2011 - AboveNet, Inc. (NYSE:ABVT), a leading provider of high bandwidth connectivity solutions, today announced it has provided fiber connectivity into DuPont Fabros Technology, Inc (DFT) wholesale data center NJ1 located in Piscataway, New Jersey. AboveNet is already connected to DFT's data centers located in Northern Virginia and suburban Chicago and is in the process of building out to DFT's newest data center development, SC1, located in Santa Clara, California.
Utilizing DFT's underground and secure 3-lateral conduit bank system, AboveNet will deploy equipment at DFT's NJ1 data center, making the facility an IP and Metro Ethernet POP. By utilizing AboveNet's private, fiber optic network and extensive metro footprint for high bandwidth connectivity, customers within NJ1 will be able to take advantage of connectivity to two major carrier hotels located in the New York City Metro area, enabling them access to key business hubs throughout the world.
"Our customers must have access to scalable, diverse high bandwidth connectivity with no network interruptions," said Hossein Fateh, president and chief executive officer for DuPont Fabros Technology. "AboveNet has and continues to provide high performance fiber optic networks for our customers' mission critical business applications."
AboveNet provides a complete portfolio of metro Ethernet, WDM, Long Haul and IP transit services. Potential benefits to DFT customers include:
Support for multiple protocols - simplifies connectivity into the LAN;
Scalability - adding capacity to the network is as simple as inserting a card and customers can scale from 1Gbps to 40Gbps;
Reliability - AboveNet WDM networks are designed to ensure availability, reliability and security;
Business continuity - Fiber Channel, ESCON or FICON for data mirroring, Storage Area Networks or other disaster recovery solutions;
Diversity - bypasses the ILEC or CLEC legacy networks;
Simple fiber handoff - no copper, pure fiber based network;
Industry - leading latency guarantee - added assurance with AboveNet's Agility Guarantee program.
DFT's enterprise and carrier customers also can access AboveNet's world-class fiber optic network infrastructure including more than 2.3 million fiber miles, an intercity network spanning approximately 12,000 route miles and a global Tier 1 IP backbone.
"We focus exclusively on the needs of the high bandwidth customer, so we designed our network to reach key Internet hub cities and markets with a high concentration of web-centric businesses, financial services organizations and enterprises with a multinational presence," said Bill LaPerch, president and chief executive officer for AboveNet. "We are pleased to work with DuPont Fabros Technology to bring this extensive network to their enterprise and carrier customers."
About AboveNet, Inc.
AboveNet, Inc. provides high bandwidth connectivity solutions for business and carriers. Its private optical network delivers key network and IP services in and among top U.S. and European markets. AboveNet's network is widely used in demanding markets such as financial services, media, health care, retail and government.
Thursday, April 21, 2011
Monday, April 11, 2011
Level 3 to Acquire Global Crossing
BROOMFIELD, Colo. & FLORHAM PARK, N.J.--(BUSINESS WIRE)-- Level 3 Communications, Inc. (NASDAQ: LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that they have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a tax-free, stock-for-stock transaction. The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries. This transaction will create a company with pro forma combined 2010 revenues of $6.26 billion and pro forma combined 2010 Adjusted EBITDA of $1.27 billion before synergies and $1.57 billion after expected synergies.
Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. Based on Level 3's closing stock price on April 8, 2011, the transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0 billion, including the assumption of approximately $1.1 billion of net debt as of Dec. 31, 2010. Global Crossing has approximately 79 million basic and preferred shares outstanding and approximately 83 million shares outstanding on a fully diluted basis, giving effect to outstanding stock awards, but excluding performance-based stock grants.
The transaction will create a company with a unique capability to meet local, national and global customer requirements in a wide range of markets. By combining the strengths of each company, the new entity will offer enterprise, government, wholesale, content, and web-based customers a comprehensive portfolio of end-to-end data, video and voice solutions.
"This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing," said Jim Crowe, chief executive officer of Level 3. "The complementary fit between the two companies' networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers."
"This transaction will provide Global Crossing shareholders with an attractive premium and significant participation in the upside potential of a leading communications company with industry-leading scale and capabilities. The combined service capabilities, extensive network assets and talented employees of the two companies will create a stronger global communications competitor with compelling offerings in the marketplace," said John Legere, chief executive officer of Global Crossing. "Each of our companies has a reputation for being nimble and flexible in meeting customers' communications needs, and we expect that to continue — with the added benefit of offering customers significantly greater reach, products and services."
"We're looking forward to welcoming Singapore Technologies Telemedia, Global Crossing's largest shareholder, as a significant investor," said Crowe. "They are exceptionally sophisticated managers, with holdings in telecommunications and information companies in a number of countries. They know the technology and they know the industry. The breadth of their communications experience and their knowledge of international markets will be a great asset to us."
"This strategic combination is an important milestone for both Global Crossing and Level 3, and a value-creating proposition for all stakeholders," said Lee Theng Kiat, president and chief executive officer of Singapore Technologies Telemedia (ST Telemedia). "Going forward, we believe the combined strengths of the two companies will position it in a very favorable, competitive position to expand in the U.S. and compete globally."
"We are committed to creating a high-performing combined business through a carefully managed integration plan executed by a select team from both companies," said Jeff Storey, president and chief operating officer of Level 3. "We will begin integration planning immediately and bring an aggressive, disciplined approach to the process. After the closing, as we integrate the two operations and work to achieve our expected synergies, we will be dedicated to maintaining our focus on providing excellent customer service and growing our combined revenues."
"The combination improves our balance sheet and credit profile immediately upon closing with further improvement as we achieve the benefits of integration. Additionally, the transaction accelerates the achievement of Level 3's target leverage ratio of three to five times debt to Adjusted EBITDA," said Sunit Patel, chief financial officer of Level 3. "Including the benefit of synergies and the cost of integration, we expect the transaction to be accretive to Level 3's Free Cash Flow per share in 2013 and to give us the financial strength to capitalize on the many opportunities available in the global market."
Under the terms and subject to the conditions of the agreement, Global Crossing shareholders will receive 16 shares of Level 3 common stock for each share of Global Crossing common stock or preferred stock that is owned at closing. Based on Level 3's closing stock price on April 8, 2011, the transaction is valued at $23.04 per Global Crossing common or preferred share, or approximately $3.0 billion, including the assumption of approximately $1.1 billion of net debt as of Dec. 31, 2010. Global Crossing has approximately 79 million basic and preferred shares outstanding and approximately 83 million shares outstanding on a fully diluted basis, giving effect to outstanding stock awards, but excluding performance-based stock grants.
The transaction will create a company with a unique capability to meet local, national and global customer requirements in a wide range of markets. By combining the strengths of each company, the new entity will offer enterprise, government, wholesale, content, and web-based customers a comprehensive portfolio of end-to-end data, video and voice solutions.
"This is a transformational combination that we believe will deliver significant value to the investors, customers and employees of both Level 3 and Global Crossing," said Jim Crowe, chief executive officer of Level 3. "The complementary fit between the two companies' networks, service portfolios and customers is compelling. By leveraging the respective strengths and extensive reach of both companies, we are creating a highly efficient and more extensive global platform that is well-positioned to meet the local and international needs of our customers."
"This transaction will provide Global Crossing shareholders with an attractive premium and significant participation in the upside potential of a leading communications company with industry-leading scale and capabilities. The combined service capabilities, extensive network assets and talented employees of the two companies will create a stronger global communications competitor with compelling offerings in the marketplace," said John Legere, chief executive officer of Global Crossing. "Each of our companies has a reputation for being nimble and flexible in meeting customers' communications needs, and we expect that to continue — with the added benefit of offering customers significantly greater reach, products and services."
"We're looking forward to welcoming Singapore Technologies Telemedia, Global Crossing's largest shareholder, as a significant investor," said Crowe. "They are exceptionally sophisticated managers, with holdings in telecommunications and information companies in a number of countries. They know the technology and they know the industry. The breadth of their communications experience and their knowledge of international markets will be a great asset to us."
"This strategic combination is an important milestone for both Global Crossing and Level 3, and a value-creating proposition for all stakeholders," said Lee Theng Kiat, president and chief executive officer of Singapore Technologies Telemedia (ST Telemedia). "Going forward, we believe the combined strengths of the two companies will position it in a very favorable, competitive position to expand in the U.S. and compete globally."
"We are committed to creating a high-performing combined business through a carefully managed integration plan executed by a select team from both companies," said Jeff Storey, president and chief operating officer of Level 3. "We will begin integration planning immediately and bring an aggressive, disciplined approach to the process. After the closing, as we integrate the two operations and work to achieve our expected synergies, we will be dedicated to maintaining our focus on providing excellent customer service and growing our combined revenues."
"The combination improves our balance sheet and credit profile immediately upon closing with further improvement as we achieve the benefits of integration. Additionally, the transaction accelerates the achievement of Level 3's target leverage ratio of three to five times debt to Adjusted EBITDA," said Sunit Patel, chief financial officer of Level 3. "Including the benefit of synergies and the cost of integration, we expect the transaction to be accretive to Level 3's Free Cash Flow per share in 2013 and to give us the financial strength to capitalize on the many opportunities available in the global market."
Monday, March 21, 2011
Level 3's International Enhancements for the Financial Industry
Level 3 Communications, Inc. announced it has added ultra-low-latency network routes to Milan and Zurich to its European financial services portfolio. The routes are available from London, Frankfurt, Madrid, New York City and Chicago. The routes further deepen Level 3's commitment to the financial services industry and provide financial exchanges and trading venues with access to all six major European financial centres as well as key U.S. centres over Level 3's international network.
SOURCE: Stockhouse
SOURCE: Stockhouse
Thursday, February 3, 2011
IPv6 on it's way -- learn more 2/17/11
Yesterday the Internet Assigned Numbers Authority (IANA) announced it had assigned the remaining blocks of free IPv4 addresses to the Regional Internet Registries. And, at a press conference this Thursday, the Number Resource Organization (NRO) will be making a significant announcement about the global transition to IPv6.
Predictions are that it will take three to seven months for the registries to distribute the remaining IPv4 addresses to carriers. The replacement is the IPv6 format, which exponentially increases the available supply of addresses. It also means big changes for every sector of the communications industry, including enterprises.
What Enterprises Need to Know About IPv6
Thursday, Feb. 17 | 2 p.m. ET
http://www.thevoicereport.com/IPv6-Enterprise
Join your peers, along with IT pro Jeff Doyle, at this FREE 60-minute webinar for a close look at the drivers behind the transition to IPv6 and the implications for enterprise networks and users. Attend and ...
» Discover how broad-based IPv6 implementation by service providers affects the networks and services you use every day to run your business.
» Find out the “weak links” in your network where IPv6 is most likely to cause performance and compatibility problems -- and what you can do now to fix them!
» Get a checklist you can use to ask your vendors and service providers about their IPv6 implementation plans ... they’re questions worth asking in an RFP too!
» Understand the timeliness involved in IPv6 deployment so you can build an effective, realistic IPv6 strategy for your enterprise.
» Plus, Jeff has set aside ample time for your questions
The IPv6 format was developed several years ago ... but at that time the supply of IPv4 addresses was adequate. Now the explosion in smart, Internet-capable devices and the boom in broadband services have made IPv6 a mandatory part of your network plans and operation.
So make sure you know all the critical details ... register now for “What Enterprises Need to Know About IPv6” at http://www.thevoicereport.com/IPv6-Enterprise
Predictions are that it will take three to seven months for the registries to distribute the remaining IPv4 addresses to carriers. The replacement is the IPv6 format, which exponentially increases the available supply of addresses. It also means big changes for every sector of the communications industry, including enterprises.
What Enterprises Need to Know About IPv6
Thursday, Feb. 17 | 2 p.m. ET
http://www.thevoicereport.com/IPv6-Enterprise
Join your peers, along with IT pro Jeff Doyle, at this FREE 60-minute webinar for a close look at the drivers behind the transition to IPv6 and the implications for enterprise networks and users. Attend and ...
» Discover how broad-based IPv6 implementation by service providers affects the networks and services you use every day to run your business.
» Find out the “weak links” in your network where IPv6 is most likely to cause performance and compatibility problems -- and what you can do now to fix them!
» Get a checklist you can use to ask your vendors and service providers about their IPv6 implementation plans ... they’re questions worth asking in an RFP too!
» Understand the timeliness involved in IPv6 deployment so you can build an effective, realistic IPv6 strategy for your enterprise.
» Plus, Jeff has set aside ample time for your questions
The IPv6 format was developed several years ago ... but at that time the supply of IPv4 addresses was adequate. Now the explosion in smart, Internet-capable devices and the boom in broadband services have made IPv6 a mandatory part of your network plans and operation.
So make sure you know all the critical details ... register now for “What Enterprises Need to Know About IPv6” at http://www.thevoicereport.com/IPv6-Enterprise
Thursday, January 13, 2011
Backlog of Verizon orders cause significant installation delays
As of January 12, 2011
Due to a significant backlog of orders at Verizon, all Firm Order Commitment (FOC) dates requested within the Verizon territory will experience significantly extended intervals.
This situation affects all CLEC’s, wholesale carriers and retail customers with orders through Verizon. The normal FOC interval duration for orders is now expected to be at least four weeks, pushing FOC dates into February and possibly March.
In order to reduce the number of backlog order currently in its system, Verizon is taking the following actions:
· No expedites will be accepted until the backlog is resolved
· Orders in the backlog will be Verizon’s singular focus, resulting in new CLEC or Verizon orders getting FOC dates in February and possibly March
· Exceptions can only be approved by Verizon at the SVP level.
Verizon’s target for resolving this issue and being back to normal operations is April 1.
Please factor this information into timelines dependant upon Verizon or CLEC T-1 connectivity. Moves, adds and changes may also be impacted.
Due to a significant backlog of orders at Verizon, all Firm Order Commitment (FOC) dates requested within the Verizon territory will experience significantly extended intervals.
This situation affects all CLEC’s, wholesale carriers and retail customers with orders through Verizon. The normal FOC interval duration for orders is now expected to be at least four weeks, pushing FOC dates into February and possibly March.
In order to reduce the number of backlog order currently in its system, Verizon is taking the following actions:
· No expedites will be accepted until the backlog is resolved
· Orders in the backlog will be Verizon’s singular focus, resulting in new CLEC or Verizon orders getting FOC dates in February and possibly March
· Exceptions can only be approved by Verizon at the SVP level.
Verizon’s target for resolving this issue and being back to normal operations is April 1.
Please factor this information into timelines dependant upon Verizon or CLEC T-1 connectivity. Moves, adds and changes may also be impacted.
Monday, January 3, 2011
Merger and Acquisition Activity in the Telecom Arena
The CenturyLink-Qwest Communications deal passed a key regulatory hurdle this week, gaining support from the Washington State Attorney General’s Office and after the companies agreed to invest at least $80 million in broadband infrastructure in Washington over the next five years, as well as freeze basic residential telephone prices for three years.
One Communications has been purchased by Earth Link. The merger has not completed as of this date.
Paetec has successfully purchased Cavalier Telecom. They deal was finalized at the final quarter of 2010.
One Communications has been purchased by Earth Link. The merger has not completed as of this date.
Paetec has successfully purchased Cavalier Telecom. They deal was finalized at the final quarter of 2010.
Wednesday, December 15, 2010
CLEC One Communications for Sale
As reported in Phone + Magazine, PAETEC and EarthLink Inc. both are rumored to want to buy CLEC One Communications Corp., which put itself up for sale in September.
Reuters reports, though, that EarthLink is officially in the running. Bids for the Massachusetts-based One were due yesterday and pricing could fall between $500 million and $1 billion. The news service quoted anonymous sources not authorized to speak on behalf of the companies involved.
About three months ago, One Communications put itself up for sale as it risked breaching debt covenants. Since that time, PAETEC has been considered a leading contender for the rival CLEC; the purchase would expand PAETEC’s reach in the northeastern United States, although PAETEC wouldn’t get much in the way of fiber assets. One Communications just sold those holdings to NTELOS.
A One Communications takeover also makes sense for EarthLink. As the dial-up ISP distances itself from a dying business model, another CLEC purchase would form a solid strategy, Current Analysis research director Brian Washburn said. If EarthLink combined its New Edge Networks and DeltaCom businesses with another competitive provider’s resources, the resulting company starts to look like “a very large, super-regional CLEC."
One Communications formed in 2006 after three CLECs merged. But earlier this fall, the economy, debt and other problems pushed the CLEC to hire private equity firm Blackstone Group LP to explore “strategic alternatives" that could include M&A.
One Communications could not comment on the reported sale plans.
Reuters reports, though, that EarthLink is officially in the running. Bids for the Massachusetts-based One were due yesterday and pricing could fall between $500 million and $1 billion. The news service quoted anonymous sources not authorized to speak on behalf of the companies involved.
About three months ago, One Communications put itself up for sale as it risked breaching debt covenants. Since that time, PAETEC has been considered a leading contender for the rival CLEC; the purchase would expand PAETEC’s reach in the northeastern United States, although PAETEC wouldn’t get much in the way of fiber assets. One Communications just sold those holdings to NTELOS.
A One Communications takeover also makes sense for EarthLink. As the dial-up ISP distances itself from a dying business model, another CLEC purchase would form a solid strategy, Current Analysis research director Brian Washburn said. If EarthLink combined its New Edge Networks and DeltaCom businesses with another competitive provider’s resources, the resulting company starts to look like “a very large, super-regional CLEC."
One Communications formed in 2006 after three CLECs merged. But earlier this fall, the economy, debt and other problems pushed the CLEC to hire private equity firm Blackstone Group LP to explore “strategic alternatives" that could include M&A.
One Communications could not comment on the reported sale plans.
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