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Level 3 IP Traffic Exchange Principles

As a result of changing market conditions and differential growth of various IP networks, Level 3 continues to evaluate its IP traffic exchange principles to ensure that they fairly reflect existing market and network dynamics. Level 3 believes that traffic exchange agreements, which now take many forms, should reflect a core tenet of the Internet when it was founded: namely, that traffic exchange arrangements between network entities should be fair and equitable. Achieving this fair and equitable balance requires constant evolution of IP traffic exchange principles, especially given rapid changes in the Internet and the networks that support it. As a result, Level 3 expects these principles to evolve from time to time and reserves the right to modify, replace or withdraw these principles at any time, in Level 3's sole discretion.

Traffic Exchange
Level 3 currently offers varying types of traffic exchange to its global Internet network. The most prevalent, traditional type of traffic exchange is "transit," which is a service offered by Level 3 that allows access to all global routes on the Internet.
Other types of traffic exchange arrangements provide mutual access to a subset of routes, and may or may not involve payment between the two parties. Recent market innovation is leading to a much wider variety of traffic exchange agreements, some of which combine elements of traditional "transit" service with elements typically associated with other types of traffic exchange. Like any commercially negotiated arrangement, Level 3 believes such arrangements are appropriate when both parties equally benefit from the relationship.

General Consideration
Level 3 will generally consider negotiating a traffic exchange agreement that deviates from traditional transit service if the other IP network operator:

• Has the capability, processes and tools to assure a high degree of network performance, upgradeable capacity, full diversity and robust security
  
• Has a physical network that is complementary and/or similar to Level 3's IP network in terms of size, reach, scale, diversity and reliability
  
• Has a robust traffic exchange capability both in terms of the quantity of traffic exchanged and the number and size of private traffic exchange points
  
• Maintains an acceptable traffic exchange profile.

In all cases, Level 3 reserves the right to determine at its sole discretion whether or not to enter into a traffic exchange arrangement with any entity. All traffic exchange arrangements will be memorialized through execution of a contract, the terms and conditions of which are subject to negotiation.