Level 3 Poised as CDN Powerhouse Despite $181M Loss

Level 3 is trying to keep history from repeating itself. The carrier has developed a new order entry system called Unity. Crowe said Unity will handle “two-thirds of high-margin revenue” by year’s end. Much of those sales likely will come from the 500 new reps Level 3 plans to hire by June.

Level 3 will absorb a larger sales force even as it keeps its current executive roster intact. Kevin O’Hara, co-founder and former president and COO, resigned in March with little explanation from Level 3. Neil Hobbs took over as COO and Crowe assumed the title of president. Crowe on Wednesday responded to analysts’ inquiries about O’Hara’s abrupt departure.

“We shook hands and he left,” Crowe said. “We had differing points of view about organizational matters and how to approach fixing problems.”

A CDN executive also stepped down, citing personal reasons. Crowe said he expects no other executive disruptions.

Now, amid day-to-day operations, Level 3 is looking to make its name as a top CDN provider. In March, it signed a long-term patent cross-licensing agreement with IBM – and bought 20 patents from the conglomerate, according to various media reports. Level 3 already owns more than 80 CDN patents and has another 50 pending.

But Level 3 isn’t just making deals – it’s also defending its rights in court. In January, the company sued rival Limelight Networks for patent infringement.

“We are very comfortable that we have the rights to the current and future intellectual property that we need to conduct our content delivery network,” Crowe said. Fighting for CDN rights “is going to be an increasingly important battleground,” he added.

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