LEVEL 3 LAUNCHES SERVICE IN EUROPE I
nternational Gateway Opens in London
London - 26 January 1998 – Level 3 Communications International, a unit of Level 3 Communications, Inc. (Nasdaq:LVLT), launched its international gateway in London today. The UK operation is a key milestone in the company's strategic, $8-10 billion plan to build the first international telecommunications network based on Internet Protocol (IP) technology. Level 3's strategy is to reduce the cost of business communications across the world by using Internet Protocol (IP) packet switched technology – a more cost-effective communication method than current circuit-switched based networks – over its own international fibre optic network designed to carry all communications services.
"We are seeing huge changes in the requirements for telecommunications services as Internet technology progressively transforms the way we communicate," says Colin Williams, CEO of Level 3 International. "Companies" growing data requirements are driving the need for a fundamental change in both capacity and cost." "Fundamentally, we believe all communications costs will decline in real terms. But, while we can expect to see decreases in traditional voice costs, we can expect to see the costs of IP-based traffic - or the cost to move a bit of information over a distance - decreasing by far greater amounts."
"We think we are exceptionally well positioned in the marketplace because of our strong capital position, our seasoned management team and our advanced technology," said Williams. "We're building a brand new international network literally from the ground up. Unlike the existing networks – which are voice networks that have been tweaked to accommodate data – we are building a data network which can handle voice - and at a significantly lower cost."
About Level 3's UK Operations
The Level 3 office and operations facility is located at 6 Braham Street, in the City of London, and will be the hub of European operations housing the Regional Network Management Centre and Customer Care Centre. The 6,000 sq.m. (75,000 sq. ft.) facility will house the operational centre and gateway switch equipment, along with additional space for expansion and colocation services. Level 3 plans to recruit 500 staff for the London office in 1999 alone. European expansion Following the launch of services in London, Level 3 plans to offer services in and between Paris, Amsterdam and Frankfurt later in the year with two additional International cities to be announced at a later date. These first city networks will be initially interconnected with a 2,000-mile Pan-European network. The company has also negotiated over seven gigabits of capacity on Trans-Atlantic cables with several cable concerns and has joined with other telecommunications companies to build a Trans-Pacific cable. The Trans-Atlantic cable will interconnect Level 3's pan-European and U.S. intercity network.
Level 3 has been granted full PTO (Public Telecommunications Operator) and National and International Facilities licences in the UK, France, Germany and the Netherlands. National and International facility licences have also been granted in Belgium. The launch follows the company's acquisition of a leading London Internet Service Provider – BusinessNet Ltd. The acquisition accelerates Level 3's entry into the UK market as BusinessNet has an established market focus on the financial and professional services community, specifically through their IntracityTM network, offering access to financial and other Internet Protocol (IP) oriented information services.
Initial Services Offered
Level 3 is positioning itself to begin providing businesses with critical services on a competitive basis. Initially, Level 3 will use leased network capacity and, as its international IP-based infrastructure is completed, the company will replace leased facilities with its own network. Eventually, Level 3 plans to offer a complete range of communication services. The initial products being offered to business customers by Level 3 include the following services:
International Private Lines - a point-to-point service used to provide communications from one company location to another
Colocation - a state-of-the-art network facility of telephone hosting equipment to provide reliable and secure 24-hour access for mission critical equipment
Internet Access - a premium service offering high-capacity connections for Service Providers and secure, reliable access to the Internet for corporations worldwide
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.
