Level 3 and Corning Agree to Cooperatively Research, Develop and Deploy New Generations of Optical Fiber
Corning to be worldwide supplier of optical fiber and cable to
Level 3 Advancing Technologies Promise to Rapidly Reduce Communications Costs
BROOMFIELD, Colorado, October 23, 2000 – Level 3 Communications, Inc., (NASDAQ:LVLT) today announced it has entered into a strategic agreement with Corning Incorporated (NYSE:GLW) that closely aligns future fiber technologies from Corning with the ongoing development of Level 3's continuously upgradeable network.
The agreement further strengthens the relationship between the two companies and promises to continuously reduce the cost of communication services offered by Level 3. Under the terms of the agreement, Level 3 and Corning have agreed to cooperatively research, develop and deploy new and more cost effective generations of optical fiber.
The agreement also makes Corning the worldwide supplier of optical fiber and cable to Level 3 for at least the next four years. To this end, Corning has committed to supply more than 10 million kilometers of additional advanced fiber for future installation in the Level 3 intercity and metropolitan networks.
Today's announcement follows an August agreement by Level 3 to deploy more than two million fiber kilometers of an enhanced generation of Corning "LEAF" optical fiber in its second U.S. inter-city conduit, beginning in 2001. "I'm extremely pleased to announce this groundbreaking strategic alliance between our two companies," said Kevin O'Hara, Level 3's president and chief operating officer. "We view Corning as a premier manufacturer of optical fiber, cable and photonics. This agreement means our customers will receive the benefits of continuous technical innovation and receive the cost advantages that new generations of fiber promise to bring."
Fiber optic technology, one of the most rapidly improving technologies in industrial history, is a fundamental building block of Level 3's network, and each new generation of fiber enables substantial reductions in network unit costs. Corning's current high data rate fiber line is led by LEAF fiber, with MetroCor fiber, as Corning's newest offering for metropolitan networks.
Both LEAF and MetroCor fibers are advanced non-zero dispersion-shifted fibers that are optimized for performance in long-haul and metropolitan networks respectively. The specific type of Corning optical fiber deployed by Level 3 worldwide is expected to evolve as Corning rolls out new fiber technology.
Corning Cable Systems, a wholly owned Corning subsidiary, will provide the cable for all of the fiber required for these next stages of Level 3's network development.
Wendell Weeks, Corning's executive vice president, Optical Communications, said the strategic agreement further underscores Corning's longtime relationship with Level 3 and Corning's commitment to continually improve fiber technology.
This agreement also underscores the strategic importance of the continuously upgradeable fiber technology platform that Level 3 has adopted. "We regard Level 3 as a premier provider of continuously improving communications services," Weeks said. "Our companies will continue to work together in the development of future fiber technologies to ensure that Level 3's customers have the benefits of next-generation fiber designs. Corning has an aggressive commitment to research and development, creating fiber and photonic technologies that continuously drive down the cost of bandwidth."
O'Hara said that close relationships like the one that has developed between Corning and Level 3 will become an increasingly important characteristic of the communications industry supply chain in era of the Internet. "The price-performance of network technologies is improving at a remarkable rate," O'Hara said. "This agreement underscores Level 3's commitment to work closely with both our key technology suppliers and customers in order to stay ahead of the technology curve."
About Corning
Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning's revenues in 1999 were $4.7 billion.
Editor's Note: Corning and LEAF are registered trademarks of Corning Incorporated.
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.
