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  1. #1
    Join Date
    Jan 2003

    L3 to pay ALGX 54 mil to terminate agreement between companies

    "Level 3 Communications will pay Allegiance Telecom USD 54 million in cash to terminate a vendor agreement between the two telecom companies. In a press release, Level 3 said that this payment will end a multiyear agreement that allowed it to buy dial access services on a wholesale basis..."

    Anybody know what's up with that?

    (please move this thread if I placed it wrong)
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  2. #2
    Join Date
    Jan 2003
    Chicago, IL
    Doesn't seem like it acually means much of anything to clients of either, does it?
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  3. #3
    Join Date
    May 2003
    Kirkland, WA

  4. #4
    Join Date
    Feb 2004
    Louisville, Kentucky
    It's rumored that AOL will soon stop farming out dialup access to Level(3). This could have appreciable impact on their ingress from peers.
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  5. #5
    I guess I read it differently. It says that Level3 is going to quit using Allegiance. The contract actually came along with the Genuity purchase. Once in bankruptcy the court is going to aggressively go after people that owe the company money, but if the company owes you money good luck. The worst scenario is being a customer and vendor to a company that enters bankruptcy. They get relief on their bill from you, but you need to pay them in full. Just another government program to reward failure.

    I think it is a safe assumption that the dialup access is not what it once was. There is still some business and I wouldnt call it dead, but many companies have shifted their focus away from it.

    A good example would be Genuity. Although it once focused some attention to the dialup market, with Level3's purchase it is no longer something they focus on. If it didnt save L3 money I couldnt see them doing it.

  6. #6
    Join Date
    Nov 2002
    San Diego, CA

  7. #7
    l3 does not play that game, but a few large clecs do use their bandwidth for their dsl offerings.

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