Contract Valued at More Than $100 Million
BROOMFIELD, Colo., October 17, 2000 – Level 3 Communications, Inc., (NASDAQ: LVLT) today announced it has signed a network services agreement with France Telecom, one of Europe's largest communications companies.
The lease contract has a term of 20 years and a value of more than $100 million. Under the terms of the agreement, Level 3 will provide France Telecom with long-term transport services, colocation space and operation and maintenance services throughout the United States.
This infrastructure will support France Telecom's increasing IP traffic between Europe and the U.S. as well as allow Global One, France Telecom's wholly-owned subsidiary, to offer its corporate customers enhanced voice, Internet and data services in North America. "We look forward to working with France Telecom and Global One through this important new agreement," said Jimmy Byrd, president of Level 3-North America. "It will enable them to serve their customer base in North America while providing Level 3 with a substantial, long-term source of recurring revenue."
Jean-Philippe Vanot, Executive Vice President of France Telecom Long Distance, noted that France Telecom already purchases a number of network services from Level 3 in the United States. "Our relationship with Level 3 has proved very successful to date," Vanot said. "We have chosen Level 3 Communications to supply our infrastructure in North America because of the expected reliability of the company's multi-conduit infrastructure and facilities, as well as the speed with which Level 3 can deliver these critically important new services."
France Telecom announced its plans to launch a 15,000-mile North American transmission backbone network on Sept. 26. The network will connect 28 major cities in North America and is scheduled for completion by the end of 2001. With a capacity of up to 1.6 Tbps, the network will support all types of traffic, including Internet, data, voice, and multi-media. The network will connect with the world's major submarine cables and meet the needs of the entire France Telecom group.
(*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.
