Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Verizon Communications Inc. (VZ) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verizon Communications Inc. (VZ) - $25 value - yours FREE >>
Image: Bigstock
Level 3 Communications to Shut Down Legacy Voice Service
Level 3 Communications Inc. has sought permission from the U.S. telecom regulator Federal Communications Commission (FCC) to discontinue its legacy voice services based on outdated TDM (time division multiplexing) technology. The service is expected to shut down effective Aug 25, 2016 subject to the FCC’s approval. All affected users will be shifted to high-speed IP-based network before the termination of the legacy voice system.
Telecom service providers are moving toward IP-based network as more and more enterprise customers are opting for IP-enabled cloud services. Apart from Level 3 Communications, national telecom carriers like Verizon Communications Inc. (VZ - Free Report) and Sprint Corp. (S - Free Report) are on the same path. Verizon is awaiting the FCC’s nod to stop providing postpaid calling card and personal 800 services while Sprint wants FCC approval to shut down its long-distance voice network.
Level 3 Communications’ legacy voice service mainly consists of Analog PBX Trunk service and Digital PBX Trunk Service. Level 3 Communications has a strong presence in several fields of enterprise networking including data networks, content distribution, managed services, securities, voice cloud and cloud connection. The company stands to benefit from the ongoing trend of large enterprise customers shifting to IP and fiber-based network architecture.
With growing demand for bandwidth for implementing converged IP-based networks, Level 3 Communications’ growth prospects are on a solid footing. Level 3 Communications is enhancing its bandwidth capability and flexibility to enable customer MNCs to adjust bandwidth according to their requirements. By gradually expanding its footprint overseas, the company is now threatening to overtake European market leaders like Orange SA (ORAN - Free Report) and BT Global Services, a division of BT Group Plc. .
Level 3 Communications currently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>