DSLnetworks to Bundle its DSL Services with Level 3's New (3)CrossRoads
Internet Access Service to Offer ISPs One-Stop Shopping
Level 3 to Receive More than $35 Million Under Terms of Agreement
BROOMFIELD, Colo., August 29, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that DSLnetworks will bundle digital subscriber line (DSL) services with Level 3's new (3)CrossRoads service to offer Internet service providers (ISPs) combined "last mile" and backbone Internet access packages.
The "last mile" is an industry term describing the direct link between an end-user and the local telephone company's central office. Under terms of the three-year, $35-million agreement, Level 3 will be DSLnetworks exclusive provider of Internet protocol (IP) backbone Internet access. "In effect, this agreement provides one-stop shopping for ISPs," said Mike Knaisch, senior vice president of strategic alliances for Level 3. "This end-to-end service allows ISPs and other Web-centric companies to use one combined last-mile and long-haul Internet access service to deliver data, video and voice applications to their customers. Level 3's alliance with DSLnetworks gives our customers, especially Internet companies involved in the digital distribution of entertainment content, access to a leading last-mile broadband distribution network with broad U.S. DSL coverage without concern about interconnection issues."
DSLnetworks, a national provider of end-to-end DSL connectivity solutions, already maintains equipment in
Level 3's Los Angeles gateway, and will colocate in five additional strategically located gateways, including New York, Atlanta, Dallas, Chicago and San Francisco (Sunnyvale, CA). Using the (3)CrossRoads platform, DSLnetworks will have a virtual connection into every additional Level 3 gateway. DSLnetworks aggregates DSL access and coverage from Covad, NorthPoint, Rhythms and other DSL providers. The company is one of the largest providers of single-source DSL coverage in the United States, with service currently available in more than 80 Metropolitan Statistical Areas (MSAs).
"This alliance enables ISPs to offer highly reliable DSL services and scale those services to hundreds of thousands of users," said Brad Connors, president and chief executive officer of DSLnetworks. The combination of Level 3's high-performance IP backbone network with our DSL-focused access services provides ISPs with a DSL outsourcing option that is second to none and delivers on performance, ease-of-management and scalability."
"This agreement will allow ISPs to concentrate on what they do best, providing content and other services to end users instead of worrying about building networks," said industry analyst Adam Guglielmo of TeleChoice. "As the industry moves beyond vanilla transport and into a network with more value added services, we definitely expect to see more of these arrangements."
(3)CrossRoads Introduced earlier this month, is a new and more cost effective Internet access and transport service that can lower bandwidth costs for Internet companies by as much as 50 percent. (3)CrossRoads features Destination Sensitive Billing (DSB), the industry's first pricing based on the destination of Internet traffic rather than traditional flat rate pricing.
The new service enables Level 3 customers to enjoy long-term cost savings and bypass congested Internet exchange points, minimizing latency and improving end-user experience. (3)CrossRoads is an IP service network platform that offers a wide range of interface types and access locations, including a Gigabit Ethernet (1,000 Mbps) customer interface option. Level 3 employs a unique network approach to track the destination and monitor the bandwidth usage of IP packets traveling on or off its high-capacity, continuously upgradeable fiber network.
(3)CrossRoads service is available today in 38 major North American markets where Level 3 owns and operates advanced Internet and communications facilities called gateways, including Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. Additionally, Level 3 expects to offer (3)CrossRoads service in 11 European and Asian markets by year's end. For more information on
(3)CrossRoads, visit www.Level3.com/560.html.
(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
[Editor's Note: (3)CrossRoads is a service mark of Level 3 Communications, Inc.]
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.
