Telecom Merger

The Washington Utilities & Transportation Commission has approved an all-party settlement under which control of Level 3 Communications LLC will be transferred to CenturyLink, Inc. The cash and stock transaction was valued at approximately $34 billion. 

The agreement provides for CenturyLink to acquire Level 3's parent company. As a result, CenturyLink also will acquire the six competitive local exchange carriers that Level 3 has registered in the state of Washington. 

The commission determined that the transaction will yield a net positive effect in Washington, with CenturyLink becoming a more competitive company as a result of the merger and better able to fulfill its obligation to provide telecommunications service to consumers who may have limited choices. 

The commission stated that CenturyLink is the largest local telephone company in Washington, serving approximately 720,000 residential and business phone lines. Level 3 Communications is a multinational telecommunications and Internet service provider and is headquartered in Broomfield, Colorado. (Docket UT-170042, Order 03)