In a filing regarding its plan to purchase Level 3 Communications (LVLT +0.5%), CenturyLink (CTL +0.7%) argues that the two companies don't "significantly" compete in the business services market where they overlap.
“While CenturyLink and Level 3 offer overlapping services for SMBs and enterprises, they do not significantly compete with each other in the provision of these services,” the company says in its FCC filing.
Rather, it faces new fronts from cable operators like Charter (NASDAQ:CHTR) and Comcast (NASDAQ:CMCSA), CenturyLink argues: “Indeed, the culmination of the cable companies’ decade-long extension of fiber deep into their networks and the maturation of their business services support systems now stands as the most significant competitive factor in the business data services market.”
Bigger competitive providers such as Zayo Group (NYSE:ZAYO) are also threats, not to mention national incumbents like AT&T and Verizon, the company says.
CenturyLink came to a deal last October to buy Level 3 for about $34B.