LVLT may be seeing a light at the end of the tunnel. Its cheap enough. I picked up some today for longer term. We'll see.
VOIP business is taking off. AOL and ELNK.
DENVER (Dow Jones)--Level 3 Communications Inc. (LVLT) is finally seeing some
improvement in the prices it gets for its broadband fiber optic infrastructure,
the company's chief executive said Wednesday.
"In the last two to three quarters, we've seen a sea change in the industry,"
CEO James Crowe said during a presentation at the Goldman Sachs Communacopia
conference in New York, which was Webcast. "We've seen marked improvement in
the pricing environment, and the unit growth on the IP (Internet protocol)
network is continuing to grow."
Level 3, Broomfield, Colo., has been plagued for several years from
overcapacity in the telecommunications sector and has turned a quarterly profit
only once in the last seven years.
But Crowe said the Internet backbone provider will experience only one more
year of declines in its traditional managed modem business, which will then
flatten and moderate. The lost modem business is already being offset by
increases in Voice over Internet Protocol business, he said.
"Our business hasn't suffered from lack of demand or unit growth, but from
savage pricing," Crowe said.
Level 3 shares traded recently at $2.22, up 7 cents, or 3.26%, on volume of
5.3 million shares.
(END) Dow Jones Newswires |
