Posts on quality, life, culture, the media, news & tech with a twist & a slice of Limey. I moved my blog to http://renaissancehambara.jp in December 2006, go there for the latest content.
Saturday, July 23, 2005
Level 3 to Crooked E?
Totaltele.com had an interesting report from Dow Jones Newswire how Level3 the backbone network provider had been exhibiting Enronesque traits. Level 3's capital-intensive business model is questioned (subscription required) by Helen Draper highlights how Level3 is having to invest huge amounts of money to make just a little money back, hurting its working capital.
This was one of the factors that encouraged all the creative accounting at Enron. This is particularly interesting as Level 3 was both a supplier of capacity to Enron Broadband Services and at the same time its CEO James Crowe was a vocal critic of the Enron Broadband Services business model according to journalists that I had spoken to.