Internet Backbone Consolidation Continues…

Om Malik, Monday, August 28, 2006 at 12:18 AM PT Comments (13)

Having atoned for its past sins, Global Double Crossing is back in the growth mode, and says it will buy FiberNet, a metro area network provider for about $96.1 million. It is no different from a recent buying spree by Level 3 Communications. Level 3 is trying to transform itself from a pure vanilla backbone provider to a more metro services company. That’s where the money is for now. Just a quick rundown of what has transpired since the telecom bubble burst in 2001.

New Level 3 = Level 3 + Looking Glass + WilTel Communications + Progress Telecom

New Qwest = Qwest + OnFiber

Verizon = Verizon + MCI

New AT&T = SBC + BellSouth (pending) + AT&T

Tata Telecom =  VSNL + Teleglobe + Tyco

Reliance Communications = Reliance + FLAG Telecom

I am sure I am missing some, so let me know.

Rating: 57% Thumbs Up Thumbs Down
Print

2 trackbacks so far

August 28th, 2006
5:18 PM PT

Om Malik covers our Fibernet aquisition…

Om Malik wrote about us earlier today in his post Internet Backbone Consolidation continues. Hey Om, we love the coverage, but why’d you have to dredge up the ancient past? While you were dredging up dirt from the bottom of the ocean did you happen …

April 1st, 2008
12:24 PM PT

[...] business for $2.3 billion. Tata and its local rival Reliance have been on a buying binge for a while now, but buying a branded mobile phone maker would be a first for either of [...]

11 comments so far

August 28th, 2006
4:57 AM PT
Anonymous said:

Level 3 also obtained Telcove Communications in the eastern part of the U.S. - a big part of its new metro network.

August 28th, 2006
6:46 AM PT
Daniel Golding said:

Om, Thanks - that handy summary chart just went on my Whiteboard.

August 28th, 2006
8:30 AM PT

I think is pretty lame that the telecoms have merged back together again. I can tell you from personal experience that whenever these companies buy out another the quality just goes right in the toilet. This happened with teleport in Portland Oregon when Earthlink bought them out. This is happening right now with SBC being bought out by AT&T. By the way AT&T was bought by Cingular. Currently if you try to get support on your old SBC internet the tech support that happens to be India can’t offer you any support unless you are dealing with AT&T standard interest services. I was transfered back and forth from DSL to Email and back to DSL trying to deal with email issues.

A good site to check out is: (link)

We need new laws that basically start limiting companies from working globally. They need be limited to the country where they are based. In the US I would limit them to only being able to work within 1 state. If they want to do business in another state they need to work with another company.

I say this because these companies are like a plague that eat up all the resources in an area and move that money and resources to other places and off-shore bank accounts. So the communities around the world are drained rather than being enhanced and improved.

August 28th, 2006
9:38 AM PT
10012 said:

360 sold hybernia fiber to ken peterson of cvc

August 28th, 2006
10:20 AM PT
skibare said:

got to add the 1.3 billion TelCove by Level3 to your list…

Skibare

August 28th, 2006
6:00 PM PT

Om, I expected more from your coverage on the latest Global Crossing news on strategy against more recent progress than that of the past.

The old Global Crossing blazed a trail in communications and it was the followers who met with (and continue with ) public scrutiny , like Ebbers at WorldCom and Nacchio at Qwest.

The new Global Crossing set a strategy in motion almost 2 years ago to harvest and invest into identified business lines. Some call this addition by subtraction.

The announcement regarding FiberNet is a reality of Global Crossing’s performance against stated strategies in a high margin enterprise business line which doesn’t necessarily relate to your comparison.

Don’t look at what other providers are doing but look at Global Crossing strategy, performance against strategy and how a move like FiberNet promotes the strategy.

August 28th, 2006
6:29 PM PT

Om you forgot one entry:

New New AT&T = New AT&T + Qwest + Verizon

August 28th, 2006
7:43 PM PT
Om Malik said:

Onofrio, you guys have not done a good job of outlining your strategy, and e should clearly talk. love to talk more about this. as they say, i am all ears. how do i get in touch? or perhaps you can drop me an email.

of course, the past is part of the present and also the future. i think i am glad the past is behind you, but lets not forget as well.

August 29th, 2006
10:32 AM PT
Troc ster said:

can you enumerate as many difference as posible between a plain and simple backbone provider and ‘more metro services’ provider please ?

August 29th, 2006
2:41 PM PT

What about the folks down in DC who claim to be the largest Ethernet service provider in the United States and a top five global service provider? Doesn’t Cogent Communications warrant a mention on your list?

September 6th, 2006
2:20 PM PT
Solomon said:

Not only consolidation, but expension.

XO is planning to lit up long haul fiber network in early 2007. I think it will be based on Level 3’s dark fibers.

Leave a Comment

Get the comments RSS feed, instant notification of new comments

Most Comments

Is There Money in Voice APIs?
Dameon Welch-Abernathy, July 15, 40 comments
Why Silicon Valley Should Be Worried
Om Malik, July 17, 33 comments
What Getting Buzzed Says About Yahoo
Om Malik, July 16, 30 comments
GigaOM Network Content to be Featured on BusinessWeek.com
Om Malik, July 14, 28 comments
Why Metered Broadband Is Bad for Microsoft, Google & Us
Allan Leinwand, July 17, 26 comments
Close
E-mail It