Level 3 Communications (News - Alert) is an American multinational telecommunications and Internet service provider company headquartered in Broomfield, Colorado, that operates a tier 1 network. On April 29, 2015, the company reported results for the first quarter 2015, which showed that total revenue came in at $2.05 billion. This represents a net income of $122 million, as well as basic and diluted earnings per share of $0.35 per share.

A breakdown of some of the numbers shows that:

• The deferred revenue balance was $1.195 billion at the end of the first quarter 2015, compared to$1.208 billion at the end of 2014.
• Network Access Costs were $723 million in the first quarter 2015, compared to $721 million on a pro forma basis in the first quarter 2014.
• For the first quarter 2015, excluding non-cash compensation expense, Network Related Expenses were $351 million. This compared to $347 million on a pro forma basis for the first quarter 2014.
• Excluding non-cash compensation expense and integration-related expenses, SG&A expenses were $339 million in the first quarter 2015. This compared to $342 million on a pro forma basis for the first quarter 2014.
• Non-cash compensation expense was $31 million for the first quarter 2015. For the first quarter 2014, non-cash compensation expense was $19 million on a pro forma basis.
• For the first quarter 2015, Adjusted EBITDA was $635 million, including $5 million of integration-related expenses, compared to $593 million on a pro forma basis for the first quarter 2014.

Jeff Storey, president and CEO of Level 3, said that "Level 3 had a solid start to the year, progressing on integration and generating profitable growth. Customers are seeing the benefits of the acquisition, including our differentiated products and solutions, expanded network footprint and customer-first approach."

The acquisition that Storey is referring to is last year’s $5.6 billion acquisition of TW Telecom. This is a company which was also located in Colorado and provided business voice services, transport, Internet, data services and wholesale fiber capacity. It was an early leader in the deployment of Ethernet for metropolitan areas.

Essentially, this acquisition will give Level 3 Communications the ownership of a key asset prior to the build-out of new broadband services with speeds up to 100 times faster than the norm via the use of fiber. This becomes a critical factor as companies are now expecting more from their providers.

The bottom line is that this appears to be a merger that will have various benefits, one that should strengthen Level 3's position, improve its products and accelerate its growth in a key segment. This acquisition not only creates a larger and faster network, but also the likelihood of Level 3 gaining market share.

When you look at the fact that enterprises are seeking to take advantage of the maturing telecommunications technologies, as well as expecting more from their providers, its seems that last year’s acquisition, combined with a healthy first quarter result have Level 3 Communications moving in the right direction.