LONDON, February 9, 2006 — Level 3 Communications (Nasdaq:LVLT) today announced that it has signed a definitive agreement with Apollo Submarine Cable System Ltd., to secure additional transatlantic capacity for its international network. Under the terms of the agreement, Level 3 will purchase 300 Gigabits (30x10G) of transatlantic capacity (equivalent to the capacity required to make approximately 10,000,000 simultaneous Internet Protocol (IP) based calls) and has immediate access to the capacity. Level 3 also has the right to purchase 300 Gigabits of additional capacity, taking the contracted capacity up to a total of 600 Gigabits (60 x 10G).
Level 3 continues to experience rapid customer growth on its network. The Level 3 global IP backbone network currently carries over 3.7 petabytes of Internet Protocol (IP) traffic every day (one petabyte is the equivalent of 2,000,000 CDs). IP traffic carried across Level 3’s transatlantic network has doubled in the last twelve months. Prior to this transaction, Level 3 had 480 Gigabits of lit transatlantic capacity, with approximately 85 percent of this currently in service and being utilised. This strategic purchase gives Level 3 scalable capacity on four diverse routes across the Atlantic, including the Level 3 developed Yellow cable system, and enables connectivity from the United States to Continental Europe that is entirely diverse from the New York region and the United Kingdom.
“We continue to see growth in demand for IP transit and growth on our transatlantic routes,” said Brady Rafuse, president of Level 3 in Europe. “The purchase increases the total available capacity on our transatlantic network to more than 700 Gigabits immediately and greater than 1000 Gigabits should we exercise our right. This investment facilitates the ongoing scalability of our network, guaranteeing supply to accommodate growth in the medium term,” he added.
The Apollo Cable System, one of the most technically advanced Atlantic cable systems, is 13,000 km in length. It consists of two diverse submarine transatlantic cable legs connecting Long Island and New Jersey in the U.S., with Cornwall in the UK and Brittany in France.
“We are delighted to have completed this significant transaction and expanded our relationship with Level 3,” said Alan Robinson, managing director of Apollo Submarine Cable System Ltd. “Level 3 has always been an important customer to Apollo, but through this capacity transaction, Level 3 is now the major anchor tenant on the system.”
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.
