Level 3 Gears Up to Deliver on IP Promise
By Sheridan Nye
19-JUN-98
Level 3 Communications appointed its prime investor, Peter
Kiewit Sons' Inc., to build the US's first dedicated IP network,
dubbed 'Blank Sheet'.
At a total cost of around $2 billion, the 15,000 miles of fiber
will interconnect with Level 3's local networks currently under
construction in 15 cities across the country. Level 3's declared
aim is to provide end-to-end IP services to businesses in the US
with planned international expansion to Europe and Asia. The
company said construction of its long distance network will begin
immediately, with a completion deadline of first quarter 2001.
Kiewit, one of the US's largest construction firms, is backing
Level 3 to the tune of $3 billion. The company is the former
holding company of MFS and the former employer of many Level
3 executives, including president and ceo, James Crowe. Kiewit
also built networks for MFS before the MAN-specialist became a
subsidiary of WorldCom in 1996 for $14.3 billion.
Crowe has made no secret of Level 3's mission to undercut
telcos in local and long distance markets, promising services at
1/27 of that offered by switched-circuit networks.
The company it is also taking a aggressive stance on network
roll-out, laying six to eight spare conduits along the fiber route to
allow for expected expansion.
Level 3 aims to connect 60 cities within three years and has
cleared rights of way with the Union Pacific Railroad Co. for 7,800
miles of rail routes mainly west of the Mississippi River.
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