BROOMFIELD, Colo., March 21, 2005 – The following statement can be attributed to James Q. Crowe, chief executive officer of Level 3 Communications, Inc. (Nasdaq:LVLT):
“Today, Level 3 withdrew a forbearance petition the company had filed in December 2003 with the Federal Communications Commission seeking to clarify the regulatory status of Voice over IP.
“In the petition, we asked the FCC to reaffirm that legacy interconnection fees called ‘access charges’ do not apply to a certain class of VoIP traffic. By statute, the agency was required to issue a decision in the matter by March 22, 2005.
“Level 3 has withdrawn the petition in deference to the Commission. Given the appointment of new leadership only three business days before the statutory deadline for ruling on the petition, we determined it was inappropriate to ask the agency to resolve this important issue in the timeframe required by law. However, there remains a pressing need in the industry for clarity in this area, and Level 3 may elect to refile the petition or take other appropriate regulatory actions in the future.
“Our decision to withdraw the petition was made in consultation with industry participants that share our views, including the VON Coalition and CompTel/Ascent.
“Level 3 is committed to offering the industry’s broadest suite of wholesale VoIP services, and our decision, which in effect maintains the regulatory status quo, will not have any material financial impact on the company. Level 3 and other VoIP service providers continue to maintain that voice calls between the legacy telephone network and the Internet should be exchanged using reciprocal compensation rates, which are lower than access charges and far closer to the network provider’s true cost.
“We believe that VoIP stands to deliver enormous benefits to business and residential end-users, and will help drive broadband adoption nationwide. In our view, and in the view of many of the companies who supported this petition, creating regulatory clarity is the best way for the government to encourage investment in this promising new technology.
“The Commission’s record is one of strong support for Voice over IP, and we’re confident it will resolve these important issues in an appropriate and timely manner. There are number of other avenues by which the Commission can address the issue of VoIP and intercarrier compensation, and our hope is that it does so quickly in order to provide the industry with clear ground rules. We look forward to continuing to work with the FCC as it formulates policies that will foster VoIP’s continued development.”
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.
