Category: Uncategorized
- Published: 29 November -0001
Level 3 to Unveil Residential VoIP Services at VON Conference on March 29; To be Offered in More than 300 of the Largest U.S. Markets by End of 2004
Plans to Deploy Business and Residential VoIP Services in Europe
BROOMFIELD, Colo., March 16, 2004 - Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that it is launching the next phase of its voice strategy in the U.S. and Europe. The company’s aggressive VoIP rollout will include the introduction of two new residential VoIP services at the Spring 2004 VON Conference & Expo being held March 28 through April 1 in Santa Clara, Calif. “Over the course of the last several quarters, we have successfully launched a variety of IP-based voice services, all of which address large existing voice markets and which exploit the inherent technological advantages of Level 3’s network,” said James Q. Crowe, chief executive officer of Level 3.
“Following the introduction of these residential VoIP services, Level 3 will have what we believe is the broadest suite of VoIP services in our industry. Demand for VoIP is growing, as broadband penetration rates rise and adoption rates increase among businesses and consumers. Our history as a VoIP pioneer, combined with the scope of our offerings and our wholesale strategy, position Level 3 well to capitalize on this trend.”
Level 3’s VoIP strategy calls for service offerings across three key areas:
- Wholesale services sold directly to carriers and other voice service providers;
- Enterprise services designed for small and medium sized businesses, sold through local phone companies, value-added resellers and other distribution channels, and;
- Consumer services aimed at the residential market, sold through cable operators, ISPs and other communications companies in a position to sell voice services to the home.
Level 3’s VoIP services leverage the company’s extensive softswitch platform – the largest in the world, which has carried more than 300 billion minutes of voice and data calls since 1999. Level 3’s softswitch platform delivers the reliability and quality required for voice services, and the network offers coverage to more than 300 of the largest markets in the U.S.
“Level 3 introduced the world’s first carrier-quality VoIP termination service in 1999, and today we have industry-leading experience in building scalable, highly reliable IP voice services,” said Sureel Choksi, president of Softswitch Services for Level 3. “We also derive an important advantage from our wholesale strategy. Our customers appreciate the fact that we are not vying with them for the business of the end-user. We believe that will prove to be a significant differentiator for Level 3 as demand for VoIP services continues to increase.”
Wholesale VoIP Services
Among key target segments, Level 3 has seen growth in its new and enhanced suite of wholesale VoIP services, which include (3)Voice® Termination, (3)VoIPSM Local Inbound (formerly MARKETPLACE) and (3)VoIP SM Toll Free services. The (3)VoIP Local Inbound and (3)VoIP Toll Free services are sold to call centers, conferencing providers and other companies looking to leverage the lower total cost of ownership and expanded capabilities of IP. The termination service, meanwhile, enables carriers to terminate long-distance calls in North America across the Level 3 network, and can also be used as a platform to deliver other voice services to business and enterprise customers.
Since releasing these services in September 2003 and January 2004, wholesale voice traffic has increased by more than 50 percent. “The growth in our wholesale VoIP services has been spurred by strong interest in the solutions we provide to conferencing and call center operators, and by the recent activation of VoIP termination service for one of the world’s largest carriers,” said Choksi. “We are encouraged by our growing funnel of customer opportunities.”
Enterprise VoIP Services
Next week, at the Channel Partners Conference & Expo in Las Vegas, Level 3 will announce the expansion of its channel partner program to broaden the base of providers who will market (3)ToneSM Business voice services.
The (3)Tone Business offering provides low cost, highly reliable local and long-distance voice services for small and medium-sized businesses and is ideal for a variety of market segments, including real estate, retail, construction, banking and health care.
(3)Tone Business is an enhanced communications service that can deliver combined capital and operating savings of as much as 40 percent over traditional alternatives. The service, which was introduced in September 2003, leverages Level 3’s national, IP-based network.
Residential VoIP Services
Level 3’s new residential VoIP services, to be formally unveiled later this month, will be offered in more than 300 markets across the U.S. by year’s end. The services will allow U.S. cable operators, ISPs and enhanced service providers to offer IP-based local and long-distance communications services to consumers with broadband connections. The services will offer national coverage, enable local number portability, and will meet 911 and E911 interconnection standards across the U.S.
“Given the rapid growth of residential broadband, we believe there will be robust demand for a low cost, highly reliable VoIP service that our customers can market to consumers as an alternative to traditional local phone services,” said Choksi.
Level 3 Europe
Level 3 also plans to introduce voice services in Europe during the second half of 2004.
“We have completed a program of detailed market assessments across Europe,” said Brady Rafuse, president of Level 3’s operations in Europe. “We have identified areas in both the residential and business markets across Europe where Level 3 can offer a strongly differentiated set of services to both our channel partners and their end customers. We are planning a country by country rollout of services to begin later this year.”
For more information about Level 3’s VoIP services, please visit www.level3.com.
About Level 3 Communications
Level 3 (Nasdaq:LVLT) is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL partners. The company offers a wide range of communications services over its 22,500 mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, and patented Softswitch managed modem and voice services. Its Web address is www.Level3.com.
The company offers information services through its subsidiaries, Software Spectrum and (i)Structure. For additional information, visit their respective Web sites at www.softwarespectrum.com and www.i-structure.com.
The Level 3 logo and (3)Voice are registered service marks and (3)VoIP Toll Free and (3)VoIP Local Inbound are service marks of Level 3 Communications, Inc. in the United States and/or other countries. (3)Tone is a service mark of Level 3 Enhanced Services, LLC in the United States and/or other countries.
Forward Looking Statement
Some of the statements made by Level 3 in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that its primary risk factors include, but are not limited to: changes in the overall economy relating to, among other things, the September 11 attacks and subsequent events, substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; technology; the number and size of competitors in its markets; law and regulatory policy; and the mix of products and services offered in the company's target markets. 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 release should be evaluated in light of these important factors.
Level 3 contacts:
Media
Josh Howell
720/888-2517
Paul Lonnegren
720/888-6099
Investors
Robin Grey
720/888-2518
Sandra Curlander
720/888-2501
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