Level 3 Communications (LVLT) To Introduce NaaS Solution

Leading U.S. fiber optic network service provider, Level 3 Communications Inc. (NYSE:LVLT) has launched its automated on-demand Network-as-a-Service (NaaS) with Adaptive Network Control Solutions, which is powered by Cisco System’s (NASDAQ:CSCO) Network Service Orchestrator (NSO). The latest offering will allow customers to control their Ethernet service bandwidth for cloud connections among other things.

What are NSO Solutions?

Enabled by the Tail-f network service, Cisco’s NSO is an industry leading orchestration platform deployed across a number of service provider networks.It offers end-to-end orchestration which enlarges multiple domains in network and enables network functions virtualization (NFV), management and organization (MANO) and software-defined networking (SDN). It can also be employed for the creation and alteration of services using standardized models without the need for time consuming custom coding or service disruption. This ensures quick delivery of services alongside most stringent service-level agreements (SLAs).

Benefits of NaaS Solutions

Level 3 Communications’ collaboration with Cisco Systems will enable the former to offer hybrid cloud connectivity, dynamic capacity with bandwidth of up to 300%, optimized data backup and real-time information on network performance and utilization.

The new offering will leverage the advantages of network automation and SDN to offer technology systems quicker and more efficiently, thereby allowing rapid integration of new third-party cloud services and applications from test environments to full-scale production. Additionally, it promises accelerated time-to-market for new applications as well as end-to-end visibility through Level 3 Communications’ Enhanced Management. The NaaS technology represents massive scope for service providers like Level 3 Communications to continue being innovative for customers and maintain competitive in the market.

Meanwhile, Level 3 Communications has also revealed a programmable wide area network (WAN) with the help of Cisco’s NSO. The new network offering can automate data services and multiple devices, and orchestrate activation, testing and ongoing service-level assurance.

Bottom Line

Level 3 Communications has been striving to strengthen its foothold in the rapidly growing markets of WAN and Hybrid Cloud and set the standards for NaaS offerings. Despite increased customer disconnects, analysts are of the opinion that Level 3 Communications is a great pick now. In addition, its Core Network Services enterprise business is anticipated to witness 1.5% growth from the previous quarter.

Zacks Rank & Key Picks

Level 3 Communications currently has a Zacks Rank #3 (Hold). Investors interested in the telecommunication sector may consider NTT DOCOMO, Inc. (NYSE:DCM) and Nippon Telegraph and Telephone Corporation (NYSE:NTT) , both sporting a Zacks Rank #1 (Strong Buy).

LEVEL 3 COMM Price

LEVEL 3 COMM Price | LEVEL 3 COMM Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>