Level 3 is one of the country’s biggest providers of back-end Internet services. The company’s network of fiber optic cables is used by the likes of Google and Netflix. In 2011, Level 3 acquired Global Crossing for a global reach.
TW Telecom, based in Lone Tree, Colo., will give Level 3 a significant provider of local Internet access services and online-based voice calling to businesses.
Level 3′s offer was worth about $40.86 a share, 12 percent above TW Telecom’s closing price on Friday. In addition, Level 3 will also acquire about $1.6 billion in debt.
Level3 provides core transport, IP, voice, video, and content delivery for most of the medium to large Internet carriers in North America, Latin America, Europe, and selected cities in Asia.
It is also the largest competitive local exchange carrier (CLEC) and the 2nd largest provider of fiber optic internet access (based on coverage area) in the United States, after Verizon.
Today XO and Towerstream, dominate fixed wireless backhaul. XO Communications delivers services through a mix of fiber-based Ethernet and Fixed Broadband Wireless. Towerstream recently announced a partnership with Alcatel-Lucent for one-stop deployment of Small Cell infrastructure.
In July 2013 Level 3 was accused of wiretapping the German Internet Exchange Point for the NSA, and a few months later, was accused of tapping connections between Google and Yahoo data centers.