Softswitch* Technology Can Make Communications Faster, Less Expensive and More Productive
Already Successful in U.S., Level 3 Introduces First Softswitch-Based Service in Europe LONDON
BROOMFIELD, Colo., October 11, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced the launch of an innovative technology that will enable the development of new communication services in Europe.
"Softswitch", which was pioneered and co-developed by Level 3, is essentially computer software that emulates the functions performed by traditional telephone circuit switches to control a communications network. "The Softswitch platform, together with Level 3's Internet protocol (IP) network, will bring customers the best of both the traditional telephone network and the Internet ubiquity and reliability combined with rapid cost reductions and innovative new services," said Gail Smith, president of Level 3 Europe. "The Softswitch architecture helps place our services firmly on a Silicon Economics curve, so that we can enjoy rapidly declining capital costs as our network grows. It moves services that used to be circuit switched, over to the kind of price performance curves we've seen only in the data world. The Softswitch architecture is distributed, scalable, and open, built in the true tradition of the Internet."
Similar to a computer operating system, the Softswitch is an open platform on which developers and Level 3 customers can build innovative and specialized applications that make communications faster, less expensive and more productive. Level 3 expects Softswitches to speed adoption of converged voice and data services such as unified messaging, an application that will allow people to receive e-mail, voice mail, fax messages and pager messages on a personal computer, mobile phone or other electronic device.
Managed Modem Already proven reliable and successful for Level 3 in the United States, Managed Modem is the first Level 3 service available on the Softswitch platform in Europe. Managed Modem enables Internet service providers (ISPs) and large corporations to provide dial-up connections to the Internet or corporate networks without incurring the costs associated with building and maintaining their own dial-up modem infrastructure.
"Level 3's Managed Modem service has been quite successful in the United States, where it currently processes more than four billion minutes per month," said Yves Bronchain, senior director of Softswitch Services for Level 3 Europe. "A number of top ISPs, including AOL and Earthlink, have been using our Softswitch-based Managed Modem service in the United States to provide their customers with high-quality dial-up Internet access service. We expect the service to be well received in Europe as well."
In the United States, Level 3's Managed Modem service has been shown to significantly reduce the capital costs associated with building facilities to house dial networks; purchasing, upgrading and scaling Dial IP equipment, and employing support staff to manage facilities and equipment. The service allows ISPs to focus on marketing their services to Internet users, while Level 3 manages their dial platform and provides high-quality, high-speed network access.
In addition to the United States, Softswitch-based Managed Modem service is available today in Frankfurt, Amsterdam and Brussels, where Level 3 owns and operates Internet and communications facilities called "Gateways." The company expects to offer the service in the UK by years' end. Level 3 customers can take advantage of Managed Modem and other Softswitch services from a Level 3 Gateway, their own premises, and other IP-enabled facilities connected to the Level 3 network such as neutral colocation centers and carrier hotels.
(*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 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.
