FRONTIER AND LEVEL 3 SIGN LANDMARK $165 MILLION DATA NETWORK AGREEMENT
Lease Agreement Gives Level 3 National Long Distance Network Initially Connecting 15 Cities Validates Frontier's IP Network Strategy
ROCHESTER, NY, and Omaha, NE, March 24, 1998 – Level 3 Communications, Inc. and Frontier Corporation (NYSE:FRO) today announced an agreement enabling Level 3 to lease capacity on Frontier's 13,000 mile SONET fiber optic IP-capable network for a period of up to five years. Valued at approximately $165 million, the leased network encompasses 8,300 route miles of OC12 network capacity, initially connecting 15 of the nation's largest cities.
"We are extremely pleased to be working with Frontier, an industry leader in data and network communications services," said James Q. Crowe, president and CEO of Level 3 Communications. "While we are building our own IP-based network, this lease arrangement will give us a network over which we can begin providing service to business customers in several cities during the third quarter of 1998." Crowe noted that the agreement gives Level 3 the option to increase network capacity if needed.
"With Level 3, we are providing network capacity to a company that believes in our vision of IP based networks, which will supply voice, fax and data applications to millions of customers," said Joseph P. Clayton, president and CEO of Frontier Corporation. "This agreement leverages our world-class network and data expertise by implementing a leading-edge data and Internet strategy."
Level 3 is committed to using state-of-the-art IP technology to provide communications services to business customers. This network decision supports an effort to stimulate growth and provide a scaleable architecture that is more easily upgradeable than older, legacy systems employed by other telecommunications carriers.
About Frontier Corporation
Frontier Corporation is one of the leading providers of integrated telecommunications services – including long distance, local telephone, wireless, Internet and data applications – to business customers nationwide. With Frontier's state-of-the-art, self-healing nationwide fiber optic network, customers will enjoy faster transmission speeds, greater bandwidth capacity and unrivaled reliability. Frontier's services are available from one source, on one bill, with one point of customer contract. For more information, visit the Frontier Web site at www.frontiercorp.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.
