Level 3's New Service Features Rapid Provisioning over its Cost Effective and Scalable Optical MPLS Network
New Intercity Service, Combined with Existing Metropolitan Service, Enables Level 3 to Provide End-to-End Ethernet Service
BROOMFIELD, Colo., December 17, 2001 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has launched a new MPLS-based Ethernet private line service in the U.S. and Europe. The new service offers customers secure Ethernet-based data transmission to and from 33 cities in the U.S. and Europe over Level 3's upgradeable intercity and transatlantic fiber-optic network. Level 3 also announced plans today to offer MPLS-based ATM and Frame Relay services in early 2002.
Level 3's new MPLS service, combined with the company's metropolitan Ethernet service introduced last year, enables Level 3's customers to provide cost effective, end-to-end Ethernet service to and from businesses at speeds of up to one-gigabit per second. This new service extends existing local area networks (LANs) into
Level 3's metropolitan and long haul networks with minimal incremental operational or capital expenditures for Level 3, its customers, or end users. Level 3 can provision the new service within days of an order.
"The launch of this new MPLS service is another step we're taking to serve the top 300 companies with substantial needs for bandwidth services," said Dan Caruso, group vice president of Network Business for
Level 3. "We believe that MPLS will do for packet transport services what the Level 3 softswitch platform has done for the wholesale dial-up Internet access market, namely lower network infrastructure costs and improve margins for carriers, ISPs and other communications companies."
MPLS, which stands for multi-protocol label switching, allows network equipment to speed the delivery of information through a communications network by sensing continuous streams of data, like private lines, and routing that information based on pre-assigned labels and not individual packet addresses. Additionally, MPLS technology gives network service providers the ability to prioritize the delivery of certain classes of traffic, much like package delivery services do. Level 3 is an industry leader in standards development of MPLS technology, and is using the Martini Draft, a method upon which all current Layer 2 MPLS private networks are based. The Martini Draft was authored by Level 3 engineers, including Luca Martini, for whom the method is named.
"MPLS is a revolutionary transport routing technology that allows Level 3 to streamline, simplify and lower the cost structure of its network management and operations," added Caruso. "Our new MPLS-based Ethernet private line service is controlled and maintained entirely by Level 3, providing both us and our customers with an economically superior, easy to manage data transmission method that's not vulnerable to cross-network performance degradation or compatibility.
"The new service leverages the benefits and wide use of Ethernet technology in LANs to provide businesses with secure private networks that allow traffic growth without equipment or network upgrades."
The market in 2002 for packet transport services, such as Level 3's new MPLS-based Ethernet private line service, exceeds $10 billion, according to industry analyst firm IDC.
Ron Kaplan, a senior research analyst with IDC, said, "One of the major barriers to adoption of Ethernet in the metro and long-haul markets has been a lack of the quality of service, SLAs (Service Level Agreements) and restoration features common in frame relay and ATM services. Level 3's incorporation of MPLS into its Ethernet offering and its expanded SLAs address these customer requirements."
"MPLS-based services are an evolutionary way for Level 3 to provide its customers with data services," said Lisa King-Guillaume, vice president of MPLS Services for Level 3. "Featuring distance-insensitive pricing, our new MPLS-based Ethernet private line offering is a usage-based service that transmits data securely from point to point.
"MPLS also enables us to provide guaranteed QoS (Quality of Service) across a shared network infrastructure, and gives us the ability to converge multiple layer 2 network protocols - Ethernet, ATM, Frame Relay - over our backbone. MPLS also gives us the ability to support the new service with service-specific SLAs that cover latency, packet loss, jitter and network availability."
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.
