Could Rackspace Hosting (RAX) partner with Google and/or Microsoft next year? Either scenario is a possibility for the cloud and Web hosting company, says Colby Synesael, an analyst for Cowen & Co., in a research report Wednesday. He called such a partnership one of his top potential surprises for 2015 in the telecom sector. Other possibilities on Synesael’s list include Dish (DISH) partnering with Sprint (S), and Level 3 Communications (LVLT)
Level 3 Communications and Zayo Group, two telecom survivors of both the dot-com bubble and the global financial meltdown of 2008, will soon mark milestones. Level 3 (LVLT) expects to close its acquisition of TW Telecom (TWTC) this quarter, continuing its roll-up of long-distance fiber-optic networks, U.S. metropolitan assets and Internet infrastructure. After buying TW Telecom, Level 3 will stand as a stronger rival in the business market to AT&T
Sprint (S) may sell its wireline long-distance network and Level 3 Communications looms as a buyer, speculates Oppenheimer. “We see a sale-leaseback of (Sprint’s) long-distance network as likely,” said Oppenheimer analyst Tim Horan in a research report. “We suspect Level 3 would be the most likely partner, and it would be quite accretive to its FCF (free cash flow).” Level 3 Communications (LVLT) in June agreed to acquire TW Telecom for $5.7