REACH Buying 10-Gigabit Wave Ring from Level 3 Linking Japan-U.S. Cable With Key California Markets
BROOMFIELD, Colo., October 16, 2002 - Level 3 Communications, Inc. (Nasdaq:LVLT) announced today that it has signed a multi-year, multi-million-dollar agreement to provide optical wavelength services to REACH, one of Asia's largest international carriers.
REACH has agreed to purchase a 10-gigabit wavelength ring from Level 3 linking Los Angeles and San Jose with the Japan-U.S. cable landing station outside San Luis Obispo, Calif. The Japan-U.S. cable is a high-capacity undersea cable system connecting the mainland United States with Hawaii and Japan. REACH will use the wavelength from Level 3 to enhance communications services it currently provides to its customers in both Asia and North America.
"REACH is one of the leading international communications companies serving the Asia-Pacific region," said Glenn Russo, senior vice president of transport services for Level 3. "This agreement highlights the value and flexibility of our wavelength service, which allows international carriers like REACH to expand their out-of-region footprint quickly and efficiently by using the Level 3 network, thereby avoiding unnecessary investment in their own facilities-based network infrastructure."
With Level 3's (3)Link Global Wavelength service, companies with large bandwidth needs can purchase single or multiple wavelengths of light on any of Level 3's North American, transatlantic or European network routes. Level 3 terminates the wavelengths at on-net customer facilities, where customers can interconnect with the wavelength using their existing SONET, IP or ATM equipment, thereby reducing their network costs, shortening time to market, and maintaining network control.
Level 3 expects to activate wavelength segments for REACH using ONTAP, Level 3's proprietary online customer network management and service provisioning system. Among other capabilities, ONTAP enables delivery of wavelength and private line services when customers require them, rather than in the weeks or months that it typically takes other carriers to deliver transport services. This allows customers to tie their network purchases directly to revenue opportunities, rather than basing their orders on speculative long-term projections. ONTAP also enables customers to check Level 3's capacity inventory and prices, plan and order circuits, and manage their Level 3 network via a Web-based interface.
REACH owns and operates a global communications network that links every major market in Asia, as well as markets in North America and Europe. The company maintains an ownership interest in more than 50 cable submarine systems, operates a major satellite system and runs Internet data centers in Hong Kong, India, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. REACH is a 50-50 joint venture between Telstra Corporation Ltd., the Australian national communications company, and PCCW, the primary fixed-line carrier in Hong Kong. In fiscal 2002, REACH had revenues exceeding US$1 billion.
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.
