LEVEL 3 LIGHTS FIRST SEGMENT OF U.S. LONG DISTANCE NETWORK
Segment Carrying Customer Traffic Network Is First To Be Entirely Based On Internet Technology
BROOMFIELD, COLORADO, December 16, 1999 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that it is now carrying customer traffic between Dallas and Houston on the first completed and lit segment of its U.S. intercity (long distance) fiber optic network. A fiber network is considered to be lit when the electronics that drive the light wave through the fiber are installed, thereby making the network able to carry customer traffic. Construction of the network continues to be ahead of schedule. Level 3 is building the first international communications network optimized for Internet technology, or Internet Protocol (IP). The network is also the first continuously upgradeable network, designed to evolve as technology continues to evolve. Most of Level 3's customers are Web-centric companies, whose business operations and services are Internet-related.
"This completed and lit segment of our network marks the first step in completion of our network infrastructure and represents another important milestone for Level 3," said Kevin O'Hara, executive vice president and chief operating officer for the company. "Along with our announcement this week of the launch of (3)VoiceSM -- our voice over IP service -- the lighting of the first segment of our intercity network is a significant event for our company and, we believe, for the industry in terms of what it represents." The approximately 250 mile segment connecting Level 3's Gateway facilities in Dallas and Houston is part of a 16,000 mile intercity network being built by Level 3 in the U.S. The Level 3 Network combines local, long distance, and undersea networks, connecting customers end-to-end across the U.S. and in Europe and Asia. Level 3 has opened offices in Hong Kong and Tokyo as part of its planned Asian network. The company expects to substantially complete the U.S. intercity network by the end of 2000. The 1,800 mile first loop of the European network is expected to be ready for service in 2000. In the interim, Level 3 is providing service to customers across the U.S. and Europe over a combination of leased and owned facilities. As portions of the U.S. and European networks are completed, Level 3 will migrate customer traffic from leased facilities to Level 3's own infrastructure.
U.S. Network Construction Ahead of Schedule
"We started actual construction of our U.S. network in September 1998," said Dan Caruso, senior vice president, Network Engineering for Level 3. "We turned our first shovel of dirt along the Dallas-Houston route, which is now the first segment of our U.S. intercity network to be up and running. And, in the first quarter of 2000, we expect this segment to be joined by segments running from Houston to San Antonio and San Antonio to Fort Worth and then Dallas, to complete the first network ring in our U.S. network."
At the end of the third quarter of 1999, close to 6,000 miles of conduit had been installed by Level 3 in the U.S. By year-end, Level 3 expects to have completed in excess of 8,000 miles and be nearly 4,000 miles further along than originally scheduled. More than 80 percent of the intercity segments are now under construction and the company has crews in more than 1,000 separate locations in 36 states working on its 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.
