Level 3 Acquisition Will Completely Transform CenturyLink, Enterprise Market

If CenturyLink’s plan to merge with Level 3 Communications is approved, the combined carrier will get 76% of its revenue from the enterprise and wholesale market, said a Level 3 executive. After the CenturyLink, Level 3 merger, the combined company would be the most heavily business-focused of the nation’s five largest service providers by a long shot, according to data presented by Level 3 Chief Financial Officer Sunit Patel at the Bank of America Merrill Lynch Leveraged Finance Conference, which was also webcast. AT&T would be in the number two spot, with 17% of its revenue coming from enterprise and wholesale, followed by Verizon and Charter who are tied at 13% and Comcast, which gets just 6% of its revenues from the enterprise and wholesale market.

The combined Level 3/ CenturyLink enterprise and wholesale markets “really becomes the prime business of the company moving forward,” said Patel. At $32.5 billion for 2015, AT&T would still have the largest overall enterprise and wholesale revenues after a CenturyLink/ Level 3 merger. But the merged company would be in the number two spot with combined CenturyLink enterprise and wholesale revenues of $18.8 billion, followed by Verizon, Charter and Comcast.