Level 3 Communications Question #2 - Steve Moore

Level 3 Communications was able to raise so much capital by using a clear strategic plan. CEO Jim Crowe knew exactly what he was doing when in 2001, Level 3 Communications raised nearly $13 billion dollars, which came in the way of debt. It seems that Crowe had been researching the field of fiber-optic networks and found that there was a large demand in that sort of market. He aimed his focus on the major users of fiber-optic networks, including several corporations, AOL, and other telecommunications companies. The plan that was put in place is explained in this quote, "The goal was to raise money, rapidly build a high-capacity fiber-optic network that linked major cities in the United States, and then cut prices to attract demand from the major corporations, Internet providers, and telecommunications companies.

Jim Crowe and his Level 3 Communications company was nearly run out of business by other companies that were entering the business with almost the same exactly plan to gain capital. As I see it Crowe made this best decision yet when he purchased two software distribution companies that carried over 9,000 corporate clients. Level 3 was able to make progress and move forward into 2004, when they had the idea to use its network to offer Voice over Internet Protocol services to its customers. Crowe knew how to run a business and with the risks the took he rebuilt Level 3 Communications into a powerhouse in its industry.