Dark Fiber and Associated Services Sales for 2000 Now Total More Than $2 Billion
Broomfield, Colorado, November 28, 2000 – Level 3 Communications, Inc. (NASDAQ:LVLT) today announced it has signed new dark fiber and associated services agreements valued at more than $700 million. Sales of dark fiber and associated services for the year are valued at more than $2 billion. Services related to dark fiber include colocation and operation and maintenance services and represent approximately 50 percent of the value of these contracts.
The company will recognize the revenue over the course of the agreements, which generally run for 15 to 20 years. "We are pleased that dark fiber and associated services sales have been extremely strong this year," said Kevin O'Hara, Level 3's president and chief operating officer. "We believe these relationships are sources of additional, long-term value creation for both our customers and Level 3. In addition, the dark fiber portions of these sales are sources of cash since, while revenue is recognized over the life of the contracts, cash payments are made as fiber segments are delivered to customers. These deliveries generally occur early in the term of the contract, as fiber cable installation is completed."
The new contracts Level 3 has executed during the quarter so far are for services in both Europe and North America. Two significant customers are:
"Selected routes will be coming into service in 2001, with full operability planned over the next two years," Wilkens said. "The network provides an ideal complement for customers seeking to originate and terminate data traffic on a national broadband basis."
"We are pleased to have closed this transaction allowing us to extend our facilities based broadbrand strategy into Europe," said XO Chief Executive Officer Dan Akerson. "We continue to consider Level 3 a first-rate, respected XO strategic business partner and we look forward to working with them closely as we move ahead."
With the new agreements, Level 3 has now signed dark fiber and associated services contracts with more than 45 companies in Europe and America during 2000.
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.
