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CenturyLink Acquires Savvis
$3.2 Billion Deal as Cloud Consolidation is On
by Karl Bode Thursday 28-Apr-2011 tags: business · bandwidth · consumers · CenturyLink
Tipped by viperlmw See Profile
Back in January, Verizon struck a deal to acquire colocation and cloud hosting provider Terremark for $1.4 billion, making Verizon suddenly one of the largest hosting and cloud providers in the world and triggering speculation that additional deals would be coming soon. On cue, CenturyLink this week has announced that they've acquired Savvis for $3.2 billion. CenturyLink's announcement notes that the combined companies will operate 48 data centers across North America, Europe, and Asia with more than 1.9 million square feet of gross floor space; a robust, national 207,000 route mile fiber network; a 190,000 mile global access network; with "a customer list that includes a majority of the Fortune 500 and Fortune 1000 companies." The deal comes on the heels of CenturyLink finalizing their acquisition of Qwest Communications.

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flycuban

join:2005-04-25
Homestead, FL

Terremark

Terremark is not a San Francisco based. They are in South Florida - Miami based company.

»www.terremark.com/contacts.aspx

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY

I wonder how long

It will be before CenturyLink starts to do the get rid of the unprofitable area's of Qwest's service area a la Verizon thing?
viperlmw
Premium
join:2005-01-25

Re: I wonder how long

While there may be some paradigms being shifted in Monroe, I don't think selling rural markets (which I believe is the implication of 'unprofitable') is in CenturyLink's blood. They are a rural telco, and they have made several acquisitions over the years that indicate this (Sprint/Embarq and PacTel are not exactly full of major metro areas) and as such, I don't see any significant sales on the horizon.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7
said by Transmaster:

It will be before CenturyLink starts to do the get rid of the unprofitable area's of Qwest's service area a la Verizon thing?

Frontier is already salivating, although Qwest really didn't have any advance residential networks (such as FiOS or UVerse) that they could drive straight into the ground.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
said by Transmaster:

It will be before CenturyLink starts to do the get rid of the unprofitable area's of Qwest's service area a la Verizon thing?

OMG from Ma Bell to a Baby Bell to Quest to Century to Frontier. The horror the horror.

This little local phone company has become quite the player. They did it on their own BTW no government crutches needed.
viperlmw
Premium
join:2005-01-25

Re: I wonder how long

said by batterup:

This little local phone company has become quite the player. They did it on their own BTW no government crutches needed.

Um, have you researched the amount of GOVERNMENT subsidy money they have been getting? USF money, NECA pooling money, dirt cheap subsidized loans, etc. That's how these independent telcos have gotten their execs rich over the last 15 years. And they are SCREAMING because USF may be reformed. So, maybe, try that again.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: I wonder how long

said by viperlmw:


Um, have you researched the amount of GOVERNMENT subsidy money they have been getting? USF money, NECA pooling money, dirt cheap subsidized loans, etc. That's how these independent telcos have gotten their execs rich over the last 15 years. And they are SCREAMING because USF may be reformed. So, maybe, try that again.

OK of the thousands of independent companies that got the same thing this one is now a national player. They did it by building and buying; they leeched less that the also rans.

Is this forum the only place you get your information?
viperlmw
Premium
join:2005-01-25

Re: I wonder how long

said by batterup:

said by viperlmw:


Um, have you researched the amount of GOVERNMENT subsidy money they have been getting? USF money, NECA pooling money, dirt cheap subsidized loans, etc. That's how these independent telcos have gotten their execs rich over the last 15 years. And they are SCREAMING because USF may be reformed. So, maybe, try that again.

OK of the thousands of independent companies that got the same thing this one is now a national player. They did it by building and buying; they leeched less that the also rans.

Is this forum the only place you get your information?

I have been in telephony for 30 years. Some of that was with an independent telco (an ILEC in Utah) where I became very familiar with how government subsidies work w/regards to ILECs and CLECs. I can tell you that most ILECs weren't making much money until the Telecom Act of 1996. I can tell you that Maggie Rotterdam (I think that's her name) was very excited to when Frontier ("a Citizens communications company") made it into the fortune 500, not because it made her job any easier or her company more attractive to customers, it was because she could demand a pay raise. That's what these acquisitions are about. Greedy folks getting greedier.

In CenturyLink's case, they bought Qwest PRECISELY because they didn't have the scope or capability to bid for GOVERNMENT contracts, and with one swoop they now have government customers, as well as enterprise customers, via Qwest's Government Markets Group and Business Markets Group.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: I wonder how long

said by viperlmw:

In CenturyLink's case, they bought Qwest PRECISELY because they didn't have the scope or capability to bid for GOVERNMENT contracts, and with one swoop they now have government customers, as well as enterprise customers, via Qwest's Government Markets Group and Business Markets Group.

Just as Quest bought Ameritech in a hostel takeover. Quest was never a local provider and really had no idea how to be one.

That was during the time when hostel takeovers were all the rage. Verizon took note of this and put a "poison pill" in place. They sold phantom stock at a discount to employees by matching 1/3 of what they put in. Verizon did not issue actual stock but the plan followed the stock price and dividends exactly. Verizon would only issue NEW stock for the funds in the plan if there was an attempt at a hostel takeover. Good luck getting employees agreeing to vote their shares yes for a takeover.

56403739
Less than 5 months left
Premium
join:2006-03-08
Naples, FL
kudos:2

Re: I wonder how long

said by batterup:

Just as Qwest bought Ameritech in a hostel takeover.

Quest did not buy Ameritech.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: I wonder how long

right. Qwest took USWest in the hostel take over. Southwestern Bell (aka SBC) took over Ameritech's Region- SBC Ameritech and then it became known as SBC then at&t.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
said by 56403739:

said by batterup:

Just as Qwest bought Ameritech in a hostel takeover.

Quest did not buy Ameritech.

I stand corrected on the letter of my statement but I stand by the spirit of my statement.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
of course. This site is the great tech overlord of news.

And while CentLink may get a lot of USF money but no where near the amount of ATT or VZ. Why do you think ATT keeps all of their rural areas- they get a shit ton of $$$$$$$$.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: I wonder how long

said by hottboiinnc:

Why do you think ATT keeps all of their rural areas- they get a shit ton of $$$$$$$$.

If so why did Verizon sell them? Verizon and at&t are going 180% from each other, Verizon building for tomorrow not the next quarter. Verizon all the interweb you can use for one price. Nether going broke but at&t is making more per dollar than Verizon. Ivan will soon be gone and we shall see if Verizon stays the course. So far not sucking as much as at&t is not something the investors can take to the bank.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: I wonder how long

VZ didn't want to deal with the Union (Union= drain on company). ATT wishes to keep them only because they get the $$$$ as the same as VZ does and still did. VZ isn't building anything much anymore and are worried about how they lied to everyone with their customer uptake numbers. And you can only use VZ currently for what they define as "unlimited". When caps start making there way around to every provider- VZ will in fact be the next provider to roll them out and you can't deny that. The only thing they care about is their $$$$ coming in. VZ will not be doing anything else with FiOS until its able to prove itself has paid more than what it's worth and it has yet to do that. The uptake numbers are still very very low due to they can't get those people that way $15 per month for DSL and $30 per month for dial-tone to move to something that's 40% more than what they're paying now when their DSL works just fine. That's the problem. They entered the market too late- once again- and they'll be stuck with what they have now.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: I wonder how long

said by hottboiinnc:

VZ will not be doing anything else with FiOS until its able to prove itself has paid more than what it's worth and it has yet to do that.

Verizon is placing FiOS on poles in North New Jersey in CO areas that were not on the list of deployment filed with the BPU. Now they are placing it when they are doing other work as when roads are widened but they are placing it.

Drunk
Premium
join:2010-11-16
Elizabethtown, PA

Oh, that's nice

How about you provide us with real broadband service first? I don't need a frickin cloud.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Re: Oh, that's nice

said by Drunk:

How about you provide us with real broadband service first? I don't need a frickin cloud.

You are in Pennsylvania so you just have to fill out a form and you got it. The first link is from your utilities commission explaining the mandate. The second is the form provided by Century for ease of filing. Enjoy your broadband.

»www.oca.state.pa.us/Industry/Tel···bfrr.htm

»www.google.com/url?sa=t&source=w···&cad=rja
bn1221

join:2009-04-29
Cortland, NY

Sure

Centurylink can't even run its own business let it screw up another company...Sure......
genzoulv

join:2004-10-05
Las Vegas, NV

They suck..

They can't/wont even provide all of Vegas with high speed DSL to compete with Cox. They're a useless company.

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