New Contract Increases EarthLink's Access to Level 3's Dial-up Internet Access Infrastructure in Hundreds of U.S. Cities
Level 3 Also Reaches Agreement with EarthLink to Extend Preexisting Contract for Managed Modem Services
BROOMFIELD, Colo., Sept. 26, 2002 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed a new customer agreement with EarthLink that increases the ISP's access to Level 3's dial-up Internet infrastructure in hundreds of U.S. cities. Separately, the companies extended a preexisting contract for Level 3's managed modem services.
"While many competitors are exiting or retreating from the wholesale dial-up Internet access business, Level 3 is investing aggressively to further increase its fast growing market share," said Charles Meyers, senior vice president of Global Softswitch Services for Level 3.
"We use patented softswitch technology instead of traditional circuit switches to process dial-up Internet access calls into our managed modem ports," added Meyers. "As a result, we have tremendous cost and technology advantages over other managed modem providers. Additionally, we have the ability to leverage these advantages to cost effectively offer IP voice and other services on the same softswitch-based infrastructure."
"Level 3's network reliability and service quality have made them a trusted partner for EarthLink for many years," said Steve Dean vice president of Operations Business Management at EarthLink. "The geographic reach, performance and economics of Level 3's managed modem infrastructure contribute to our ability to bring the magic of the Internet to our nearly five million subscribers every day."
Since entering the wholesale dial-up business in 1999, Level 3 has sold more than one million ports. The company completes nearly 400 million dial-up Internet access calls and over 13 billion minutes of online usage per month for its ISP customers. Level 3's managed modem revenue in 2001 increased more than 70 percent over 2000. In 2002, the company expanded the geographic reach of its wholesale dial-up service so that it now covers approximately 90 percent of the U.S. population. Level 3 offers (3)Connect Modem service in all 50 U.S. states.
Level 3 has enhanced its (3)Connect Modem service by deploying a new technology - called V.92 - that enables ISPs to provide residential and business dial-up users with new features designed to improve end-users' online experiences. The features include faster Internet connections and data transmission rates, as well as the ability to put Internet connections "on hold" to take a phone call over the same telephone line.
In addition to (3)Connect Modem, EarthLink purchases transport, Internet connectivity and colocation services from Level 3.
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.
