JOINT RELEASE JAPAN-U.S. CABLE OWNERS SIGN CONSTRUCTION AGREEMENT
System to be completed in Year 2000
SAN FRANCISCO, Aug. 3, 1998 – A group of leading global telecommunications companies today signed a formal Construction and Maintenance Agreement (C&MA) to build the Japan-US Cable Network, an undersea cable system that will connect Japan and the United States by mid-year 2000. Carriers involved in the ongoing planning of the new cable network include AT&T, British Telecom, Cable & Wireless, GTE, Japan Telecom, KDD, Level 3 Communications, MCI, NTTWN, Pacific Gateway Exchange, PSINet, Qwest, SBC, Sprint and WorldCom.
In total, 33 parties have signed the C&MA and are investing in this project. To be fully completed by the second quarter of 2000, the 21,000-kilometer, self-healing ring system will consist of four pairs of fiber and use state-of-the-art Synchronous Digital Hierarchy (SDH) technology to initially operate at 80 gigabits per second, or 20 gigabits per second per fiber pair (two pairs of fiber will be activated when the system is ready for service), the equivalent of 967,680 simultaneous voice calls.
The network is planned for expansion to operate at 640 gigabits per second, using 10 gigabits per second technology, equivalent of 7,741,440 simultaneous voice calls, making its capacity the largest in the region. Landing points include three locations in Japan in Ibaraki, Shima and Maruyama; Kahe Point in Hawaii, and San Luis Obispo and Point Arena in California. In addition to signing the Construction and Maintenance Agreement, the initial parties have also signed a supply contract with Alcatel Submarine Networks, Fujitsu, NEC and KDD-SCS. The parties to this agreement are investing in excess of $1 billion to build the network, with each party holding a substantial financial stake and joint responsibility for network oversight, maintenance and administration. Capacity is available for sale to any party desiring to invest in the Japan-U.S. Cable Network.
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
