Level 3 Raises Its Game

A wave of telco consolidation has names like Level 3 (LVLT Quote) and Broadwing (BWNG Quote) rocking.

Now that big Internet operator MCI is a part of Verizon (VZ Quote), and SBC became AT&T (T Quote), the largest U.S. phone company, the companies that remain standing have attracted unusual investor interest this year.

Qwest (Q Quote), which teetered on the brink of bankruptcy in 2002, is up 20% this year. Undersea phone-cable operator Global Crossing (GLBC Quote), which emerged from Chapter 11 in 2004, is up 50% since the beginning of the year. And Broadwing, the long-distance spinoff of Cincinnati Bell (CBB Quote), is up 130% since Jan. 1.

Amid all the hoopla surrounding the survivors of the big telecom collapse at the turn of the century, national data network shop Level 3 got a huge upgrade to buy from sell from Bear Stearns Thursday. The bullish call sent Level 3 shares up 15%. ...