LEVEL 3 AND BELL ATLANTIC REACH AGREEMENT ON RECIPROCOL COMPENSATION
Past Reciprocal Compensation Billing Dispute Settled Between The Two Carriers
BROOMFIELD, CO, October 21, 1999 – Level 3 Communications, Inc. [Nasdaq: LVLT] today announced that it has reached an agreement with Bell Atlantic Corporation (NYSE:BEL) that establishes new intercarrier or reciprocal compensation rates between the two local exchange carriers and assures that Level 3 will be paid for the traffic it terminates from Bell Atlantic. As part of the agreement, Level 3 and Bell Atlantic have also settled past disputes over reciprocal compensation billing issues. The implementation of the new rate structure is contingent upon certain conditions including approval by relevant regulatory authorities.
"This agreement is important to Level 3 for a number of reasons," said Daniel P. Caruso, senior vice president, network services for Level 3. "It settles disputes regarding previous traffic. It provides predictability for future payments. It aligns payments with our view that all interconnection payments, whether they be terminating interconnection or access charges, should be cost-based." "The agreement creates a stronger relationship with Bell Atlantic, that is better for both companies" said Caruso. "This agreement enables us to accelerate the rollout of our Managed Modem and other Softswitch related services in the important Northeast Corridor of the United States." "Additionally, this agreement puts Level 3 in a much more competitive position in the Managed Modem market, by diminishing the importance of reciprocal compensation. In the new market, customers will make their decisions based on who has the best technology and best cost structure," said Caruso. "This clearly plays to our strength."
About Managed Modem
Level 3's Managed Modem Service offers customers a way to avoid spending additional capital to construct, maintain and upgrade their dial-up network equipment and telecommunications services. This makes it possible for customers to order this service on a per modem port basis and pay a fixed rate per month. Level 3 introduced its Managed Modem services in the Fall of 1998 and it is the first service to utilize the company's revolutionary Softswitch enabled network. Softswitches are technically advanced software control systems which Level 3 uses to provide customers with services that combine the innovation and rapidly improving performance of Internet Protocol based networks with the reliability and ubiquity of traditional telephone networks. With its Softswitch technology, Level 3 is able to interconnect as a co-carrier without the need for a circuit switch.
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.
