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Technology Stocks : (LVLT) - Level 3 Communications

LVLT 53.63

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Nov 1 5:00 PM EST

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To: bob zagorin who wrote (3493)	3/20/2007 11:42:47 AM
From: tech101	of 3873

Capacity Shortage Looming The unrelenting growth in Internet traffic in 2007 may overwhelm the Internet's backbone; the terabitcable pipes connecting continents will reach capacity and ISPs will not be prepared to pay for extra bandwidth because consumers will be unwilling to pay increased costs. The growth in demand for video delivered over the Internet in particular… as well as IPTV, will be a major contributor to excess capacity being absorbed. Source: CIO Update, “Deloitte & Touche's Technology Predictions for 2007,” Dec. 29, 2006, cioupdate.com CLEC Recovery “The CLEC industry itself has emerged from a severe downturn in the early 2000s as high leverage and large capital requirements drove several players into bankruptcy. CLECs…have been successful in the small business market through tailored services and a focused sales force. They are also benefiting from an improved competitive environment as AT&T and Verizon integrate their acquisitions and focus on medium sized and large enterprise accounts.” Source: UBS Investment Research, Jan. 18, 2007

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