Local Internet Companies Gain Direct Access to International Broadband Undersea Cable
BROOMFIELD, Colo., September 14, 2000 – Level 3 Communications Inc. (Nasdaq:LVLT) and New T&T, the fastest growing Fixed Telecommunications Network Service (FTNS) operator in Hong Kong, today jointly announced the signing of a strategic agreement, which will provide the local Internet community with direct access to Level 3's high capacity undersea cable and bolster New T&T's network services.
Under the terms of the agreement, New T&T will provide fully redundant and diverse backhaul capacity to
Level 3's Hong Kong-Japan cable, which will be landed in the second quarter of 2001. The backhaul network will connect Level 3's cable landing station on Lantau Island and its gateway in Quarry Bay, linking up the local Internet community directly with Level 3's broadband submarine cable and its global IP network end-to-end.
Level 3 will provide significant capacity on its Hong Kong-Japan cable to New T&T, which will become an important element in enhancing New T&T's global IP network capability by connecting to its trans-pacific Japan-U.S. investment. The agreement strengthens both companies positions in the market and delivers significant cost benefits of international bandwidth to the local Internet community.
With direct access and connection to a global, IP-based network, web-centric companies in Hong Kong could enjoy up to 60 percent cost savings on international capacity. "Currently the cost of bandwidth into key Asian markets averages around eight times higher than in the United States or Europe. Our agreement with New T&T allows us to deliver increased, low-cost bandwidth to Hong Kong," said Steve Liddell, chief executive officer of Level 3 Asia.
"New T&T is delighted to have concluded this agreement with Level 3," said Stephen Ng, chairman and managing director of New T&T. "As a direct result, we can now offer redundant, end-to-end IP backbone services globally to major traffic hubs, such as the United States, and intra-Asia to cope with New T&T's Building e-Connections strategy and the rapid growth of Internet and e-commerce demand." "New T&T's local network infrastructure and submarine cable investment will ensure high availability and reliability in the IP backbone services that we are going to provide to meet the premium quality requirement in the business world. Our existing WebTone customers and ISPs, ICPs, ASPs hosted in our network will also immediately benefit from this infrastructure. With the support of our local and international IP infrastructure, these providers can focus more on content and applications development which are the key to their success," said Ng.
The announcement is another milestone leading to the opening of Level 3's Hong Kong gateway, the first in Asia for the company. The completed cable system – which will be launched in the second quarter of 2001 – will be the first high capacity broadband cable system to be launched in Hong Kong and will increase the capacity out of the bandwidth-starved SAR by eight times. Level 3 established its Asia headquarters in Hong Kong in May 1999 and has since made substantial progress in bringing its Internet-focused business strategy to the region.
The company announced in January plans to build the first leg of its North Asia cable system connecting Japan to Hong Kong. Level 3 expects the cable to be ready for service in the second quarter of 2001. Level 3 is also in the advanced stages of building gateway facilities in Hong Kong's Quarry Bay and the Minato-ku district of Tokyo. Services will launch in the third and fourth quarter of this year in Hong Kong and Japan respectively.
(*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.)
About New T&T
New T&T, licensed in 1995, is the fastest growing fixed telecommunication network operator since the opening of Hong Kong's fixed telecommunication market. Since its launch, the Company has sought to bring improved service, enhanced product range and competitive prices to Hong Kong business and people. New T&T operates the largest fibre optic network in Hong Kong with the laying of over 1.7 million metres of fibre optic cable with the aim of increasing this to 1.8 million metres by the end of the year. New T&T is a member of The Wharf Group of companies, one of the largest groups of companies in Hong Kong. The group also owns i-CABLE Communications Limited, the No 1 Television Station in Hong Kong for News, Movies and Sports and a leading Internet access service provider. For further information on both New T&T and The Wharf Group, please refer to the New T&T Web site at www.newtt.com.
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.
