Level 3 Signs International Voice Agreement with Belgacom
Interconnection Agreement Allows Belgacom and Level 3 To Directly Exchange Global Voice Traffic
Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed a voice interconnection agreement with Belgacom SA, Belgium's dominant provider of telephony services. Level 3 executed the contract with Belgacom's Wholesale & Carrier Services Business Unit, which was ranked the 14th largest international carrier in 2000.
The agreement allows the two companies to terminate international voice traffic directly onto each other's networks. Communications companies without such agreements in place must use third-party resellers to exchange traffic, which drives up termination costs and decreases quality of service.
"We're confident this strategic agreement will prove mutually beneficial for Belgacom and
Level 3," said Brady Rafuse, president of Level 3's operations in Europe. "This agreement represents a significant revenue opportunity for Level 3 and allows us to now use Belgacom to directly terminate voice-over-IP traffic to parts of the world served by Belgacom's communications network. Likewise, Belgacom can rely on Level 3 to terminate calls to areas where our network footprint is strongest."
Level 3 already provides Belgacom with its (3)CrossRoads service in Europe. (3)CrossRoads is a global Internet access service designed to provide superior network performance across
Level 3's multi-protocol label switching (MPLS) backbone currently operating at 10 gigabits per second. (3)CrossRoads provides connectivity from a variety of locations around the world, including Level 3 data centers in the U.S., Europe and Asia.
"For Belgacom, this agreement with Level 3 represents an important step toward realizing our goal of establishing strategic relationships with other major players in key telecom markets around the world, particularly in the U.S.," said Dana Dunne, president of Belgacom's Carrier and Wholesale Unit. "We are very pleased that Level 3 has chosen to work with Belgacom and we believe this alliance will enhance both firms' already strong international presence."
About Belgacom
Headquartered in Brussels, Belgacom is the leading supplier of global telecommunications services to the Belgian market and the 14th largest transit provider in the world. A majority stake in the company is owned by the Belgian state; other investors include an international consortium made up of SBC, Singapore Telecom and Tele Danmark, and a group of Belgian investors.
The Belgacom group offers local, intercity and international voice and data services, cellular telephone services, satellite services, carrier services and Internet-related services. Belgacom has several "points of presence" (POPs) all over the world, including in the United States. Its U.S. POP is located at 245 Park Avenue, 39th Floor; New York, NY 10167. Telephone: 212-803 8159; Fax: 212-803-8169.
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.
