Rural Broadband Expansion At Issue in CenturyLink-Level 3 Deal

Public interest watchdogs are concerned about a proposed merger that could have big implications for rural broadband as it nears the regulatory finish line. CenturyLink’s $34 billion deal to acquire Level 3 Communications would create a potentially formidable competitor to AT&T in the telecommunications market to handle heavy internet traffic for businesses. But opponents say it would hurt broadband access for rural providers by eliminating access to wholesale rates for critical fiber connections to the internet backbone — the high-speed transmission lines that connect users’ various internet service providers to each other.

Level 3 Communications is the sixth largest provider of fiber in the United States by volume and has a broad footprint, with availability across the country. It’s also, notably, a competitive local exchange carrier (CLEC). If approved, the merger would give CenturyLink, one of the largest incumbents, ownership of Level 3’s valuable fiber assets, which are currently available at wholesale rates — but may not be if they come under CenturyLink’s control.