Level 3 Communications Question #2- Jenn Omasta

Why was level 3 communication able to raise so much capital?

In 1998 the company had gone public and immediately started building a fiber-optic network. This allowed the company to raise $13 million dollars by 2001, most of this money was in the form of debt. The goal of this plan was to raise money and rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut pieces to attract demand from major users of fiber optic network, including corporation, internet networks, etc.

Another way that the level 3 communication company was able to raise so much money was through the internet researcher at AT&T. He was able to show that the demand for internet accesses was going up 1,000percent a year. His prediction was right and in 2002 less that 3 percent of the fiber that had been laid in the ground was actually being used.