Now I realize many of you are probably shocked, shocked at the audacity of Verizon and BellSouth. How could they cry so loudly for regulatory parity, claiming their competitors had an advantage because they did not have to include a universal service surcharge, and then turn around and impose an equivalent surcharge? What does that say about their earlier pleadings?
Awesome. Tell us how you really feel guys!
On their recent acquisition of metro fiber provider Fibernet (link)
It’s not that Global Crossing or Level 3 are trying to transform themselves into a metro services company, it’s just that having robust metro networks are a critical component of improving the economics of your business. If every customer that you connect to your network requires an access loop, those charges that you incur for the loop negatively impact the margin of your sale. It is only natural for a company to seek out ways to improve margin by buying suppliers, is it not? Not only does it enable improved economics but it puts more of the total solution under our direct control, which can enable us to offer higher SLAs, something customers are always demanding.
I’m adding Global Crossing to my feedreader.