OMAHA, NE, December 18, 1998 – Level 3 Communications, Inc. (Nasdaq: LVLT) today announced an agreement with IXC Communications to lease capacity on 7,355 route miles of fiber. The company said the demand for IP-based communication services has exceeded its previous forecasts.
Kevin O\'Hara, executive vice president and COO of Level 3 Communications, said, "Demand for our IP-based services has outstripped our earlier estimates, and our need for more capacity to meet that demand has led to this agreement. We\'re pleased to have reached this agreement with IXC, which enables us to continue to build our customer base as we build our own facilities-based network."
The dedicated OC48 network will enhance Level 3\'s ability to offer a wide array of data and voice services, including Internet connectivity, private line and voice over IP to a greater number of customers in key U.S. markets, including Philadelphia, Washington D.C., Atlanta, Houston, Dallas, Chicago, Los Angeles, San Francisco and New York City. The arrangement is unique in that IXC will reserve the OC48 links for the exclusive use of Level 3, which expects to begin running traffic across the network in OC12 increments beginning in Spring 1999.
Level 3 is building the first international network optimized for Internet Protocol technology. The Level 3 network will offer local and long distance service, connecting business customers across the U.S. and in Europe and Asia. By year-end, the company expects to be offering service in 15 U.S. cities. Level 3 has announced it will construct local city networks directly serving businesses in 25 U.S. cities within the next three years. Ultimately, the company plans to offer local service capabilities over fiber facilities in 50 U.S. cities. Additionally, the company is currently building a 16,000-mile intercity network.
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.
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.