Level 3 Announces New Agreement with SBC Internet Services
BROOMFIELD, Colo., January 29, 2002 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed a new agreement to provide dial-up Internet access service to SBC Internet Services, a wholly-owned subsidiary of SBC Communications Inc. The minimum value of the three-year contract exceeds $100 million.
The new agreement was enabled by the closing on January 24, 2002 of Level 3's acquisition of McLeodUSA Incorporated's wholesale dial-up access business assets (formerly Splitrock Services). Under the terms of the new contract, SBC Internet Services is buying (3)Connect Modem dial-up port capacity from Level 3 to serve its dial and roaming DSL Internet customers. This new contract makes Level 3 the largest provider of wholesale Internet access service for SBC Internet Services.
"Our acquisition of McLeodUSA's managed modem business and our resulting agreement with SBC Internet Services are indicative of our ongoing effort to look for opportunities in the current market environment that add value and build our customer base," said Charles Meyers, senior vice president of Global Softswitch Services for Level 3. "We continue to believe that our managed modem infrastructure offers the best combination of price, performance and geographic reach in the industry."
Level 3's softswitch platform now completes more than 350 million dial-up Internet access calls and over 11 billion minutes of online usage per month for its ISP customers over Level 3's 10-gigabit-per-second Multiprotocol Label Switching (MPLS) network. MPLS is an Internet Protocol (IP) routing technology that allows Level 3 to streamline, simplify and lower the cost structure of its network management and operations. MPLS also gives Level 3 the ability to speed delivery of select classes of network traffic.
"Demand for our softswitch-based (3)Connect Modem service remains strong," added Meyers. "The top nine U.S.-based dial-up ISPs rely heavily on our (3)Connect Modem service to connect their residential and business customers to the Internet. The substantial scalability of Level 3's softswitch-based managed modem infrastructure allows us to provision service to SBC Internet Services and other (3)Connect Modem customers rapidly and cost-effectively."
Level 3 now offers (3)Connect Modem service in all 50 U.S. states and Europe. Level 3 is enhancing its (3)Connect Modem service by deploying a new technology, called V.92, that will enable SBC Internet Services and other ISPs to provide their customers with new features designed to improve dial-up Internet access service.
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.
