Level 3 to sell VoIP this year

Level 3 CEO James Crowe told listeners to his company’s Q2 conference call that the wholesale network provider would use a recent acquisition to launch a “softswitch-originated voice” service before the end of the year.

The carriers’ carrier purchased Telverse Communications, an IP-based voice and data provider, earlier this month for $30 million in Level 3 stock. The company will use Telverse assets to offer wholesale VoIP origination products to service providers, which will in turn sell to end users, primarily large and small enterprises.

“We have a couple RBOCs working with us on the Telverse platform,” said Crowe, adding that Level 3 would also market the new service aggressively to the cable MSO market.

Level 3 also will use IP and MPLS technology to penetrate the frame relay and ATM markets with new service offerings next year, Crowe said. The company has roughly a billion dollars of “extra cash” which could be used for further acquisitions, he said.

“We’re particularly excited about voice [over IP] given the very large size of that market,” said Crowe.--Ed Gubbins