Telcove Bought by Level 3

Colin writes: Telcove (formerly Adelphia Business Solutions) was bought by national telcom company Level 3 on Monday. Telcove has a significant fiber network in Cville, and, at least on the business side, is one of Embarq’s (formerly Sprint) main competitors in town.”

I am incapable of keeping up with these telecom name changes. Less competition is seldom good in telecom, or just about anywhere else. I’ll be curious to see what this does to fiber prices in the area.

2 Responses to “Telcove Bought by Level 3”

  • Curious about this. So this is seperate from the cable. Isn’t Comcast buying the cable side. Was the Telcove just the fiber line spin off?

  • This is separate from Adelphia Cable. Adelphia Business Solutions was affiliated with the cable side prior to the larger entity’s bankruptcy filing. While in bankruptcy, Business Solutions spun out of the larger company, shed some of its more far flung markets, and concentrated on being an East coast, facility-based competitive carrier. It also shed a whole lot of debt, came out of bankruptcy, and changed its name to Telcove.

    At this point, the only thing that Adelphia Cable and Telcove “share” is a large portion of the fiber network here in Cville and a few other markets. I’m not sure who leases from who and where but you can be pretty sure that the fiber bundles connecting cable headends in town also carry strands for Telcove (at least in areas that serve businesses).

    For Cville, this acquisition shouldn’t have too much of an impact. Level3 is a national carrier much like MCI and AT&T were before they were bought by Verizon and SBC. Those acquisitions cause problems for Level3 because, in many more instances, they will have to lease local loop lines from their competition to serve customers. By picking up Telcove, they will have fiber in local markets up and down the East coast and out to parts of the Midwest. So, they have an interest in maintaining the local market.

    BTW: As a result of the Sprint – Nextel merger, Sprint’s local telephone division is being spun out as its own publicly traded company. According to a press release, that local phone company is going to be renamed Embarq some time this quarter. I may have jumped the gun on that name change in the original post.

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