Level 3 Communications Question #2- Mike Dombrowski

The planned strategy of Level 3Communications in the late 1990's has multiple parts and goals. The first part and goal was for Level 3 Communications to raise money and also rapidly build a high capacity network of fiber-optics that will connect many major cities in the United States. Another part of the planned strategy is to cut prices in order to attract demand from major users of fiber-optic networks which include major corporations, Internet service providers like AOL, and other traditional telecommunications companies. Crowe also believed that the demand for his network would be "highly elastic" and that if he cut prices, that the revenues of Level 3 Communications would rise rapidly.