Telephony: The Newest Phone War
Companies to Call Over Net, 10/28/98;
"By 2002, nearly 18 percent of all telephone calls made in the largest
corporations in North America will be connected over networks based on
Internet Protocol, according to a group of Fortune 1000 chief
information officers surveyed by Killen. The value of those calls will
top US$1 billion by 2003. By 2005, the percentage of calls over IP will
mushroom to nearly 33 percent, the CIOs said. That compares to just 1
to 2 percent of calls made over IP-based networks today, worth about $31
It's Cheap--and It's Available: IP telephony rollouts could further
lower the long-distance price bar
- Triple play
for Net phones (CNET, 2/26/98): IDT 5c/min, NMS, Qwest
- Net could revolutionize phone
service (USA Today, 2/10/1998)
3 sends a wake-up call Wired, July 3, 1998
The division, formerly known as Kiewit Divisified Group, was spun off in
April into a new company called Level 3, with $2 billion in cash from
Kiewit. Shortly after the separation, Level 3 raised another $2 billion
in a public debt offering, doubling its war chest.
The plan is to build a $10-billion fiber-optic network in five stages.
With its $4 billion in hand now, the company will string 15,000 miles of
fiber to the 50 largest US cities and selected cities in Europe and
Japan. It plans to raise money for the rest of the network through cash
flow and more equity or debt offerings.
"I don't see IP telephony putting circuit-switched telephone companies
out of business, by any stretch of the imagination," retorted Ozzie
deFaria, marketing director of AT&T's IP telephony service.