Summary
1. Level 3 Communications has been doing everything it can to reduce its costs to the bone. 2. The service provider will not add any capital unless it cannot be done with what is currently in the network – and just move that around. 3. There are no discretionary, best-case projects any longer.
Analysis
Level 3 appears adamant about not adding capital unless it is absolutely necessary. Astoundingly, it looks like if the payback is not fewer than 15 days, the service provider is not going to do anything. In addition, the carrier has put together deals with its suppliers to get cards in place very quickly to support turn-ups. The idea is to not have inventory hanging over their heads.
Level 3 is still in the process of making additional layoffs in certain markets such as in dealing with duplication. The carrier has also done some restructuring on the customer support side.
In the last few months, Level 3 has apparently solved a lot of problems with order delivery. Evidently, it is doing a better job in turning up customers on a timely basis.
