Unique Hybrid Satellite/Fiber Solution Enables PanAmSat to Optimize Delivery of Video and Data to Network TV Affiliates, Broadcasters, Cable Programmers and News Agencies
WILTON, CT and BROOMFIELD, Colo., April 8, 2003 - Level 3 Communications, Inc. (Nasdaq:LVLT) and PanAmSat Corporation (Nasdaq:SPOT) today announced an agreement that will enable PanAmSat to optimize the delivery of entertainment content and information to cable broadcasters, network television affiliates, news agencies, ISPs and other customers around the globe. This system leverages the power of both fiber and satellite and is available through PanAmSat's global network.
"PanAmSat has a world-class fleet of satellites and terrestrial assets that provide communications links for the most prominent television, media, entertainment and Internet companies in the U.S. and abroad," said Kevin O'Hara, president and COO for Level 3. "PanAmSat's fleet offers an exceptional level of reliability, power and reach backed by an impressive level of expertise and technical ingenuity."
As part of the design of this hybrid network, PanAmSat is using (3)Packet ATM (Asynchronous Transfer Mode), a data communications protocol, and (3)CrossRoads Internet access services from Level 3 in several U.S. markets. (3)Packet ATM is a layer 2 wide-area networking (WAN) service that enables PanAmSat to securely and reliably exchange video and data traffic with its customers over Level 3's Multi-Protocol Label Switching (MPLS) network. (3)CrossRoads is a wholesale Internet access service that connects PanAmSat's network to Level 3 and to the other networks that comprise the Internet.
This design allows PanAmSat to transition to virtual teleports that will enable PanAmSat to connect and consolidate its six existing U.S. teleports. In addition, it allows PanAmSat's customers to access these teleport hubs via Level 3's distance-insensitive network with local points of presence (POPs) in over 70 cities in the U.S. and Europe. This new approach eliminates the need to use a satellite to gain access to this new hybrid network.
"It's difficult to turn on a television in the U.S. or almost anywhere in the world without receiving information that's transmitted over PanAmSat's global network," added O'Hara. "This satellite application marks a milestone not only for PamAmSat, but for the telecommunications industry as a whole. We look forward to working further with PanAmSat on the development of this and other services."
"This application represents a new advance in the convergence of satellite and fiber optic networks," said Joe Wright, president and chief executive officer of PanAmSat. "Since the very beginning, PanAmSat has been the industry forerunner in the development of its network. We were one of the first providers to install a transatlantic fiber link and also one of the first to build a global network of owned and affiliated teleports.
"This agreement with Level 3 represents the next step in the evolution of our network. This relationship uniting the leading fiber-optic network with PanAmSat's existing global satellite and terrestrial infrastructure will allow us to truly maximize the power of both satellites and fiber resulting in an efficient, reliable delivery network. We expect this hybrid solution to result in significant additional value and benefit to our customers."
(3)Packet is a data transport service that offers Ethernet, ATM and Frame Relay access into Level 3's managed wide area network with industry leading class and quality of service levels. Customers can purchase (3)Packet in any of Level 3's markets in the U.S. and Europe.
As part of this agreement, Level 3 and PanAmSat have also signed a Market Support Agreement to collaborate in the further development and promotion of PanAmSat's hybrid network initiatives.
About PanAmSat
PanAmSat Corporation (Nasdaq:SPOT) is the premier provider of global video and data broadcasting services via satellite. Operating a global network of 21 in-orbit spacecraft, the company reaches 98 percent of the world's population through cable television systems, broadcast affiliates, direct-to-home operators, Internet service providers and telecommunications companies. PanAmSat is 81 percent owned by HUGHES Electronics Corporation. For more information, visit the company's web site at www.panamsat.com.
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.
