Cox to Use IP Private Network Service in Select Markets
BROOMFIELD, Colo., October 28, 2002 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed an agreement to provide its new IP broadband service to Cox Communications in select markets.
Cox is purchasing Level 3's (3)Packet MPLS Private Network (MPN) service to securely and reliably exchange traffic with service providers over Level 3's high-performance IP network. Cox also purchases Internet access, colocation, private line and metropolitan dark fiber services from Level 3.
"The new Level 3 private network service performed very reliably during trials," said Jay Rolls, vice president of Data Engineering for Cox. "We believe the (3)Packet service will enable us to cost-effectively peer with MSN and other content and service providers using Level 3's MPLS-based IP backbone as the facilitator. As Cox expands the number of peering locations on its nationwide backbone, the (3)Packet service allows us to bridge an important gap in peering while we await turn-up of those new sites."
"Level 3 is committed to providing network services to the cable industry," said Dan Caruso, group vice president for Level 3. "For a number of economic and business reasons, many MSOs are evaluating the benefits of building their own nationwide network capabilities. We believe that (3)Packet provides MSOs with an ideal and cost-effective backbone and interconnection solution. Unlike traditional transport services, (3)Packet features flexible virtual circuits that transport data, voice and video traffic under a pricing structure that charges customers only for capacity that's actually used. Once connected to our backbone, our MPLS network platform can provide the additional benefits of 'advanced peering' and global Internet access without sacrificing security or class of service."
"Level 3 has been a reliable network partner for some time now," added Rolls. "The (3)Packet approach allows us to peer directly with companies that frequently exchange traffic with us on a secure, scalable private network. At times it allows us to do this without immediately taking on the capital and operational costs associated with extending our current network."
(3)Packet MPLS Private Networks
(3)Packet MPLS Private Networks (MPN) is an MPLS-based data transport service that offers Ethernet, ATM, and Frame Relay access into Level 3's managed wide area network. Customers can purchase ports from 33 Ethernet markets and more than 70 ATM and frame relay markets in the U.S. and Europe to build virtual connections between ports and create a customized network solution. Additionally, (3)Packet MPN enables businesses to manage data across distributed locations with guaranteed class of service options.
(3)Packet MPN lets communications companies deploy and manage traffic over a virtual private network, enabling them to access capacity as usage demand dictates. This flexibility ? plus its unique, distance-insensitive, usage-based pricing ? can decrease network costs. (3)Packet MPN is a highly scalable and flexible alternative to traditional transport services.
"An important aspect of the (3)Packet MPN product is its ability to provide private, highly scalable interconnections with traffic exchange partners," said Lisa King-Guillaume, vice president of (3)Packet MPN services. "Our flexible 'advanced peering' solution interconnects service providers through virtual connections. Multi-use ports enable both private network interconnects and global Internet access via a single connection."
Advanced Peering
Advanced peering over Level 3's MPLS platform eliminates cost-replication and offers an equal level of security and performance available with private networking. Advanced peering offers peering by building VPNs directly between two potential peers through a bilateral agreement between those peers, over MPLS. These VPNs are software-defined paths that are completely protected from the Internet itself. And since they ride over MPLS, they exploit the advantages of the MPLS switching platform by supporting multiple purposes and traffic types, such as Internet transit, voice or video distribution, ATM or Frame Relay traffic, or private circuit emulation.
Companies in advanced peering relationships realize immediate cost savings by "sharing" the cost of the connection between them. And in the longer term, the more companies that peer over this single MPLS platform, the greater the economies of scale.
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.
