Level 3 Receives License from Hong Kong Government to Link Hong Kong to Japan via Undersea Fiber-Optic Cable
Level 3 to Build Landing Station Near Tokyo to Bring Ashore Cable in Japan
BROOMFIELD, Colo., July 13, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced two key developments in its preparations to launch Internet and communications service in Hong Kong and Tokyo. The company announced that the Hong Kong government has awarded Level 3 an External Fixed Telecommunications Network Services (EFTNS) license, which grants it permission to provide and operate international facilities-based telecommunications services via its undersea fiber-optic cable linking Hong Kong to Japan.
Additionally, Level 3 has purchased a coastal site in Japan to bring ashore the high-speed, broadband cable. Level 3 expects to begin offering broadband services in Hong Kong and Tokyo in the fourth quarter of this year. Today's announcements follow Tuesday's news that the company plans to expand into Taiwan and Korea.
"Approval of this important EFTNS license from the Hong Kong government represents a significant milestone for Level 3, as it brings us an important step closer to delivering low cost bandwidth services to Internet service providers and other Web-centric companies in Hong Kong," said Steve Liddell, chief executive officer of Level 3's Asian operations. "Combined with our Japan landing station and our expansion plans in Korea and Taiwan, we're poised to become a major supplier of broadband infrastructure services in Asia."
Level 3's undersea cable will come ashore in Japan on Wada Town in the Chiba area, a site close to Tokyo, and connect to the company's Internet and communications facility in Minato-ku. It will interconnect with the Japan-U.S. cable nearby at Maruyama, linking Level 3's Asian network to its network in the United States.
The Hong Kong-Japan cable is expected to begin carrying Internet and communications traffic in the second quarter of 2001, and will play an integral role in enabling the Internet economy in Asia. Since establishing its Asia headquarters in Hong Kong last year, Level 3 has made substantial progress in bringing its Internet-focused business strategy to the region.
The company announced plans to build the first leg of its North Asia undersea fiber-optic cable system connecting Japan to Hong Kong in January. Level 3 is also in the advanced stages of building gateway facilities in Hong Kong's Quarry Bay and the Minato-ku district of Tokyo.
(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
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.
