Through The Fly's Eyes: Level 3 Communications, Inc.
YouTube.com Signs On With Level 3 Communications
Cisco (CSCO) reported a blow out quarter in August. Why? Because its pure IP products are massively more competitive than the circuit-switched stuff from Lucent (LU) and Alcatel (ALA).
Why did YouTube sign up with Level 3 (LVLT)? Because it has the purest IP network of any of the service providers. What Cisco is to network equipment, Level 3 is to service providers. Its network was built from the ground up using IP technology.
Video, which YouTube needs to transport, requires substantially more bandwidth than voice and data. Level 3 has the most powerful price-performance network in the US. Level 3 has been quietly signing up more and more customers. Even Cramer pounded the table last night on this stock.