Level 3 and XO Communications Sign Settlement-Free Peering Agreement
Agreement Based on "Bit-Mile" Balance Provides Customers with Efficient,
BROOMFIELD, Colo., Jan. 7, 2013
BROOMFIELD, Colo., Jan. 7, 2013 /PRNewswire/ -- Level 3 Communications, Inc.
(NYSE: LVLT) and XO Communications today announced they have entered into a
long-term settlement-free Internet traffic exchange agreement, also commonly
referred to as a peering agreement, that is based on the bit-mile balance
The peering agreement ensures that customers on each of the two Internet
service providers' networks can continue to exchange data with customers on
the other service provider's network efficiently and cost-effectively. It is
based on the bit-mile peering approach which measures both the volume of
traffic exchanged and the distance over which that traffic is carried by each
network. In order to keep the relationship equitable and settlement-free, both
networks carry approximately the same bit-miles of data, a model that promotes
efficient, high-quality service for customers, while ensuring a balanced cost
burden across each network.
As the Internet continues to grow and evolve, this approach resolves the
imbalances that can occur in traffic patterns and that would otherwise result
in increased network costs to one provider or the other involved in a peering
relationship. When asymmetry occurs, the Internet traffic carriers agree to
adjust traffic routing and interconnections to maintain a fair and equitable
relationship between the two networks. They must also maintain the ability to
exchange traffic in a scalable, resilient and reliable manner so that
consumers can enjoy the best possible Internet experience. The bit-mile
arrangement ensures this consumer benefit while doing so in a way that is
equitable to both Level 3 and XO.
"Level 3's primary focus is on providing quality service for Internet
consumers," said Jack Waters, Level 3's chief technology officer. "We look
forward to working with our peering partners to drive broader adoption of this
bit-mile model to ensure fair and equitable interconnection. We are also
working with providers of traffic-flow monitoring systems to make the
measurement process straightforward and consistent across the industry."
"XO Communications supports equitable settlement-free peering to ensure fair
and unconstrained interconnection," said Randy Nicklas, senior vice president
and chief technology officer, at XO Communications. "This agreement will
ensure a balanced backbone cost burden between our two networks as we continue
to grow while providing high-quality service for our respective customers."
The peering agreement also contains provisions to add capacity and establish
new interconnection locations between the two networks to stay ahead of
growing traffic demand. This approach offers flexibility to each network while
improving performance and reliability for customers.
About XO Communications
XO Communications is a leading nationwide provider ofadvanced IP
communications,managed networkandhosted IT servicesfor business, large
enterprise and wholesale customers. These customers include more than half of
the Fortune 500, in addition to leading cable, mobile wireless and domestic
and international telecommunications companies. XO offers a superior customer
experience through its innovative solutions, its employees' focus on customers
and the proven performance of its advanced network. To learn more about XO
Communications, visit www.xo.comorblog.xo.com. XO Communications is also on
Twitter, YouTube, Facebookand LinkedIn.
About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) provides local, national and global
communications services to enterprise, government and carrier customers. Level
3's comprehensive portfolio of secure, managed solutions includes fiber and
infrastructure solutions; IP-based voice and data communications; wide-area
Ethernet services; video and content distribution; data center and cloud-based
solutions. Level 3 serves customers in more than 450 markets in 45 countries
over a global services platform anchored by owned fiber networks on three
continents and connected by extensive undersea facilities. For more
information, please visit www.level3.com
© Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3
Communications, Level (3) and the Level 3 Logo either registered service
marks or service marks of Level 3 Communications, LLC and/or one of its
Affiliates in the United States and/or other countries. Any other service
names, product names, company names or logos included herein are the
trademarks or service marks of their respective owners. Level 3 services are
provided by subsidiaries of Level 3 Communications, Inc.
Website Access to Company Information
Level 3 maintains a corporate website at www.level3.com, and you can find
additional information about the company through the Investors pages on that
website at http://lvlt.client.shareholder.com/. Level 3 uses its website as a
channel of distribution of important information about the company. Level 3
routinely posts financial and other important information regarding the
company and its business, financial condition and operations on the Investor
Relations web pages.
Visitors to the Investors Relations web pages can view and print copies of
Level 3's SEC filings, including periodic and current reports on Forms 10-K,
10-Q, 8-K, as soon as reasonably practicable after those filings are made with
Copies of the charters for each of the Audit, Compensation and Nominating and
Governance committees of Level 3's Board of Directors, its Corporate
Governance Guidelines, Code of Ethics, press releases and analysts and
investor conference presentations are all available through the Investor
Relations web pages.
Please note that the information contained on any of Level 3's web sites is
not incorporated by reference in, or considered to be a part of, any document
unless expressly incorporated by reference in that document.
Some statements made in this press release are forward-looking in nature and
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
Level 3's control, which could cause actual events to differ materially from
those expressed or implied by the statements. Important factors that could
prevent Level 3 from achieving its stated goals include, but are not limited
to,the company's ability to: successfully integrate the Global Crossing
acquisition or otherwise realize the anticipated benefits thereof; manage
risks associated with continued uncertainty in the global economy; obtain
additional financing, particularly in the event of disruptions in the
financial markets; manage continued or accelerated decreases in market pricing
for communications services; maintain and increase traffic on its network;
develop and maintain effective business support systems; manage system and
network failures or disruptions; develop new services that meet customer
demands and generate acceptable margins; adapt to rapid technological changes
that could adversely affect the company's competitiveness; defend intellectual
property and proprietary rights; obtain capacity for its network from other
providers and interconnect its network with other networks on favorable terms;
attract and retain qualified management and other personnel; successfully
integrate future acquisitions; effectively manage political, legal,
regulatory, foreign currency and other risks it is exposed to due to its
substantial international operations; mitigate its exposure to contingent
liabilities; and meet all of the terms and conditions of its 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.
Richard Larris Mark Stoutenberg
North America +1 720-888-2518
+1 973-937-0153 Mark.Stoutenberg@Level3.com
SOURCE Level 3 Communications, Inc.
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