Company's First Advanced Data Center in Asia Opens Ahead of Schedule
Level 3 Extends Leadership Position in Internet Market Which is Projected to Reach $2.4 Billion by 2003
BROOMFIELD, Colo., September 19, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it is now offering low cost bandwidth services to Internet and Web-based companies in Hong Kong, including nearly 200 Internet service providers (ISPs).
The company, with the opening of its first advanced data center facility in Asia, has extended its leadership position in an Internet market that industry analyst firm IDC projects will reach $2.4 billion by 2003. Opening for service a full quarter ahead of schedule, the new 80,000 square foot advanced data center will be the hub of Level 3's Asian operations and house its regional Network Operations and Customer Care Centers.
The facility will be connected directly to the company's undersea cable system, which will link Asia with Level 3's U.S. and European networks. "The opening of our facility in Hong Kong, and the connection it brings to the rest of our global network, means we will break new ground in the market here in terms of bandwidth capacity and pricing," said Steve Liddell, chief executive officer of Level 3 in Asia. "Our aim is to stimulate creation and growth of new Internet-enabled industries in Asia by reducing the cost of bandwidth, which currently is about 8-10 times higher than in the United States or Europe. As we reduce the cost of bandwidth over time, we believe demand will continue to rise even faster."
Level 3's entrance into the Hong Kong market marks the beginning of the company's operational rollout in Asia. Level 3 is nearing the end of preparations to launch Internet and communications services in Tokyo, and recently announced plans to expand into Taipei, Taiwan and Seoul, Korea by the second half of 2001. The company's expansion into these important markets is fully pre-funded as part of its global business plan.
"Level 3 is well ahead of schedule in building an IP-based fiber optic cable system in Asia," said Liddell. "Customers who choose to colocate in Level 3's Hong Kong Gateway will not only enjoy cost-effective global IP connectivity and advanced network management, but also access to other products and services that will help to drive down their costs even further."
Level 3's advanced data centers, called "Gateways," are connected to the company's international Internet Protocol-based network. Gateways serve as portals to the network and provide a secure environment in which Web-centric companies can physically locate their equipment. The facilities also house Level 3"s own equipment and offer customers interconnection with the public Internet and other local and long distance networks.
Level 3 currently operates 44 Gateways in the United States, Europe and Asia. The company has secured more than 4.4 million square feet of data center space around the world and pre-funded the acquisition and construction of another 2.1 million square feet. Level 3's continuously upgradable network features advanced technology that provides high-quality, low-cost services that enable Web-centric businesses to add value and, in turn, deliver their services to end-users, including residential customers. Level 3 enables Web-centric companies to grow more rapidly by providing infrastructure and network services to help them meet increasing demand for e-commerce, streaming audio and video, and many other Web-based services.
(*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.
