LEVEL 3 COMMUNICATIONS TO INSTALL 10-12 CONDUITS IN 16,000-MILE INTERCITY NETWORK
Feasibility Testing Confirms Level 3 Can Install Additional Conduits Without Affecting Network Quality or Production Schedule
OMAHA, NEBRASKA, January 12, 1999 – Level 3 Communications, Inc. (Nasdaq: LVLT) today announced it will install 10-12 conduits throughout the company's 16,000-mile intercity network currently under construction. Previously, the company had announced its intention to install 6-8 conduits on the network. The IP (Internet Protocol) network will be the first to use Internet technology end to end and the first to be continuously upgradeable. Extensive feasibility testing has confirmed that Level 3 can install additional conduits without affecting the network's quality or production schedule.
In general, the company will install groups of 10 conduits (each 1" in diameter) in its intercity IP network. However, up to 12 conduits will be installed in areas where future network demand is expected to be strongest. Such areas will likely include segments between San Francisco and Los Angeles, as well as from Chicago to Washington, D.C. to New York. Level 3's intercity network, which is expected to be completed during the first quarter of 2001, will connect approximately 50 local city networks where Level 3 will have facilities to provide local service. It will also connect more than 150 other cities where the company may determine not to build a local network.
"Adding additional conduits at the outset is a fairly inexpensive and strategic way for Level 3 to "future proof" its network in the face of rapidly changing technology and customer demand," said Kevin O'Hara, executive vice president and COO of Level 3 Communications. "Today, we are seeing a new generation of fiber every three to four years. Other technologies, such as Dense Wave Division Multiplexing (DWDM), are changing just as rapidly. A key part of our strategy is to ensure that our network is continuously upgradeable."
Of the 10-12 conduits installed, fiber will be placed initially in only one conduit, thereby allowing for future expansion to deploy the latest fiber technology or to meet increased customer demand. Installation of up to 12 conduits gives Level 3 nine to eleven times as many "spare" conduits as most traditional telephone companies. The installation of additional conduits is not expected to affect Level 3's previously announced network construction schedule.
"The old thinking was that fiber technology would be state-of-the-art for 20 years or more," added O'Hara. "So historically, telephone companies either had no spare conduits or only a single spare. This made it difficult to expand as customer demand increased or as technology changed. The only alternative these older companies had was to lay new conduit or fiber. Level 3, on the other hand, has made ongoing network upgradeability via multiple conduits a key component in its business strategy, allowing us to take advantage of new technologies while continuing to drive down our costs."
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.
