Level 3 Communications Question #1-Anne Acerra

Crowe's strategy was to build a fiber-optic network to accommodate the rapidly growing network traffic. Crowe based his strategy on Michael O'Dell's data which stated that the traffic was growing at 1,000 percent a year. With this rapid growth rate Crowe believed he had a plan that couldn't go wrong.

Crowe's plan for the fiber-optic network was to raise funds and build a "high-capacity" network then cut prices to attract demand from high usage customers such as large corporations. This plan would have worked if O'Dell's numbers had been correct. It turns out Crowe should have listened to Andrew Odlyzko who predicted the numbers were not even close to 1,000 percent a year. Odlyzko was correct in his prediction and Crowe almost saw his company go down.