Citing Video Demand, Level 3 Buys TelCove

Level 3 said this morning that it will pay $1 billion to acquire TelCove, a broadband provider formed from the ruins of Adelphia that owns 22,000 miles of data-transmission lines serving 70 markets. In the past six months, Level 3 has now acquired WilTel Communications, Progress Telecom and ICG Communications.

What's driving the growth and need for capacity? "Over 50% of the traffic on our network is video," Level 3 Chief Executive James Crowe told the Wall Street Journal. "That is what's driving traffic. It's no different than the economy broadly. Broadband adoption is the enabler."