Om linked to this story and also discused the impact this merger will have on the bandwidth market. He also mentions that L3 will look to buy broadwing too.
With the mergers happening, there’s going to be more bandwidth available and someone will be able to consolidate it.
SBC (did) buys bandwidth wholesale from someone ( obviously WilTel). SBC then merges with AT&T that buy’s bandwitdh wholesale from soneone else. The new SBC/AT&T company no longer needs to buy two lots of bandwidth. So WilTel loses it’s biggest customer and therefore needs to find a merger partner itself to survive as it finds it self falling out of the market.
So if level3 snaps up the bandwidth providors that fall out of this M&A activity good on Level3.
I guess we’ll see the same thing happen in the market place here in Europe too in a few months.
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