Level3 is going residential. Later this month they will begin selling their high end network via ISP and Cable operators.
It appears that their goal is to turn ISP and cable companies into resellers or private label the phone service and use the Level 3 network and infrastructure. There is no question they have the fibre and the Jaguar softswitch. They also likely have the ability to easily convert h.323 to SIP as well as PSTN. The big thing is how far they will go with MEGACO, which was created to work with cable.