Level 3 Communications (LVLT) To Expand Cloud Footprint

Level 3 Communications Inc (NYSE:T) , one of the largest Internet provider in the world and the leading U.S. fiber-optic network service provider, is ramping up its cloud-based products. The service provider is reportedly making its cloud-based Adaptive Network Security available across new regions by constructing gateways in more locations. The company is striving to quickly respond to customers’ security needs.

Adaptive Network Security is a cloud-based security solution that combines next-gen firewalling capabilities including intrusion defense systems and intrusion protection systems, anti-malware sandboxing, data loss protection, URL and web content filtering and application awareness and control. This will allow customers to bring their own bandwidth to support various hybrid-networking scenarios.

The cloud-based architecture of Adaptive Network Security will help enterprises to safeguard their security environments by breaking the hardware dependency cycle and allowing features and functions to be custom-configured depending on a customer’s specific needs.

Additionally, Adaptive Network Security is designed to adapt different forms of Software Defined Wide Area Networking (SD-WAN).

With Level 3 Communications’ transformation methodology workshop, the service provider enables customers to migrate to a cloud-based security platform via professional services unit. It also allows most customers to free themselves from managing on-premises network security platforms.

Existing and new customers will be able to access Adaptive Network Security through a constellation of security gateways distributed across Asia-Pacific, Europe, the Middle East and Africa and North America. These locations are all interconnected via Level 3 Communications’ global virtual private network(VPN) backbone.

As of recently, gateways are also being built in Singapore, Hong Kong and Sydney to be more closure to its core customer locations. Additionally, the service provider is expanding its reach in other markets including Eastern Europe and Africa. Level 3 Communications is planning to expand the number and function of those gateways by 2018.

Recent Events

The much-hyped merger between CenturyLink Inc (NYSE:T) and Level 3 Communications received regulatory approval from the U.S. Department of Justice (DOJ), subject to outlined conditions, including court approval of certain provisions.

However, the pending merger still awaits regulatory approval from the U.S. telecom regulator, Federal Communications Commission (FCC) and the California Public Utilities Commission, along with other customary closing conditions.

The deal is anticipated to close in the third quarter of 2017, subject to customary regulatory approvals. Amid such regulatory issues, CenturyLink and Level 3 Communications are also struggling to maintain their business momentum owing to severe competitive threats from large telecom operators like Verizon Communications Inc (NYSE:VZ) , AT&T Inc (NYSE:T) and Comcast Corp (NASDAQ:CMCSA) .

Price Performance and Zacks Rank

Over the past month, shares of Level 3 Communications have gained 2.2% compared with the industry’s decline of 1.7%.

Currently, Level 3 Communications is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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