As the recession deepens and the telecommunications industry braces for some tough quarters, Level 3 said yesterday it will lay off 450 U.S. employees — or 8 percent of its work force. The reduction affects employees at all levels, will take place before the end of the year, and will result in a restructuring charge of approximately $12-15 million in the fourth quarter of this year. Level 3, one of the companies providing the backbone of the Internet, has high levels of debt and worried shareholders, so the news is not unexpected. But our hearts go out to those suddenly without a job.
So what happens when the wholesale carrier-carriers become insolvent? I know that there is mucho spare capacity among the regional interconnect competitors, but what if it shrinks to one or two players?
And remember, just because you own a plant, operating and maintaining it takes capital, cashflow, planning. These carriers dont run with the lights out all of the time.
They can go belly up as far as I’m concerned. Level 3 is the only ISP I’ve come across that ignores DMCA notifications.
This seems like the perfect business for our new government to sink billions of taxpayer dollars into.