America Online Purchases Wavelengths and Private Lines from Level 3 Along Multiple Routes in North America and Europe
Level 3 To Be Primary Provider of Colocation Space in Six U.S. Markets
BROOMFIELD, Colo., November 27, 2001 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced new multi-year agreements with America Online, Inc., the world's leading interactive services company, under which America Online will purchase Level 3's (3)Link Global Wavelength and (3)Center Colocation services in North America. America Online will also purchase (3)Link Private Line services connecting North America to several cities in Europe.
Under the terms of the (3)Link Global Wavelength IRU agreement, America Online has purchased major routes throughout North America to deliver broadband and broadcast services to its customers in key markets. America Online also entered into a multi-year agreement to lease (3)Center Colocation space in Level 3's advanced data center facilities in six U.S. markets. Additionally, America Online will use (3)Link Private Line services to connect North America to several cities in Europe. Level 3 continues to be a primary provider of (3)Connect Modem dial-up Internet access to America Online.
"These agreements add to an ongoing relationship we've had for the past two years and underscore the strategic value of our broadband services," said Kevin O'Hara, Level 3's president and chief operating officer. "We appreciate the increasing and continuing commitment that America Online is making to Level 3, and believe the value of our technically advanced backbone and cost structure is becoming more and more evident to our customers."
"Level 3's wavelength and private line services provide us with cost-effective, scalable bandwidth, while its data centers give us the ability to connect not only to Level 3's network, but to other networks and rich media content providers present in the Level 3 facilities," said Joe Barrett, America Online's Vice President of Internet Operations.
(3)Link Global Wavelength
With (3)Link Global Wavelength, companies purchase single or multiple wavelengths of light along particular network routes. Level 3 terminates the wavelengths at on-net customer facilities at which customers can use their existing SONET, IP and ATM equipment, thereby reducing costs.
"Our (3)Link Global Wavelength service provides ISPs, carriers and other large consumers of bandwidth with a more economical and scalable alternative to dark fiber capacity," said Jack Waters, chief technology officer for Level 3. "In addition to cost and scalability advantages, Level 3 wavelength services offer high-capacity, lit bandwidth that can be provisioned quickly, enabling communications companies to improve their operational efficiencies. Companies like America Online can use wavelengths without giving up the control that facilities-based dark fiber capacity provides."
About (3)Center Colocation
Level 3 offers its (3)Center Colocation services through its advanced data centers, called Gateways. Level 3's Gateways are connected to the company's international Internet Protocol-based network. Gateways serve as portals to the network and provide a secure environment in which communications companies can physically locate their equipment. The facilities also house Level 3's own equipment and offer customers interconnection with the public Internet and other long distance networks. Level 3 currently operates Gateways in 65 markets in the United States, Europe and Asia.
About (3)Link Private Line
(3)Link Private Line is a broadband transport service that enables companies to transmit large amounts of data, video or voice efficiently and economically while bypassing the public switched telephone network.
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.
