Not much talking on this thread. Good movement and some good news.
Rhythms NetConnections Teams with Level 3 Communications to Market IP Broadband Services
Deal to Provide Any-Distance IP Bundled Services
ENGLEWOOD, Colo., Feb. 14 /PRNewswire/ -- Rhythms NetConnections Inc. (Nasdaq: RTHM) today announced a strategic alliance with Level 3 Communications, Inc. (Nasdaq: LVLT) to market "any-distance," bundled Internet Protocol (IP) services that will enable the emerging Internet content, hosting, applications and service industries to capitalize on high-speed, cost-effective network access. The resulting bundled package will feature combined high-speed local and long-distance network connectivity, with the ability to pay for Internet backbone services on a usage basis.
According to terms of the agreement, Rhythms will connect its high-speed, fully IP-capable network to Level 3's fiber optic "gateway" facilities in 27 U.S. cities. As a result of this powerful combination, both companies will take advantage of Level 3's application hosting capabilities, rich customer base and IP network capacity, as well as Rhythms' high-speed DSL services. Rhythms and Level 3 will co-brand the service as a new product offering to emerging broadband service providers -- such as application service providers (ASPs) and Internet service providers (ISPs). These emerging providers will be able to choose the speed of their backbone Internet connection in a "pay-for-what-you-need" pricing structure, which allows the companies to aggregate their network traffic at lower costs and increased efficiency.
"Partnerships with leading carriers, such as Level 3, are pivotal to our overall strategy," said Catherine Hapka, Chairman and CEO at Rhythms. "We continue to lead the industry in teaming with others to define new and innovative services for emerging broadband providers. This new service offering presents a powerful value proposition for those providers, as now they will be able to purchase bundled IP services that meet their specific bandwidth needs now and in the future."
Rhythms' network supports the rapidly growing IP network transmission protocol, as well as traditional protocols such as Asynchronous Transfer Mode (ATM) and Frame Relay. The company's IP over DSL network capability allows it to support a broad range of IP internetworking capabilities and services in a simpler, more cost-effective manner than by using more traditional protocols. This network functionality is increasingly important when doing business with new broadband application providers and service integrators.
Today's agreement is part of Rhythms' overall strategy to develop strategic partnerships that enable the emerging Internet content, applications and service industries. In recent weeks, Rhythms announced partnerships with e-Business Delivery Network, Digital Island, Inc. and broadband integrators such as iPhysicianNet, among others. Rhythms' direction is to offer such emerging service providers the performance, reliability and security of the Rhythms' DSL-based national broadband network. This strategy provides the emerging providers with a reliable, feature-rich infrastructure for their customers.
About Rhythms
Rhythms NetConnections Inc. (Nasdaq: RTHM) is a North American provider of DSL-based, high-speed Internet and networking access solutions. Rhythms was chosen by FORTUNE magazine as one of its "Cool Companies for 1999." Based in Englewood, Colo., Rhythms currently serves 40 markets, covering 71 MSAs. Telecommunications services for Rhythms are provided by Rhythms Links Inc., a wholly owned subsidiary of Rhythms. For more information, call 1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at www.rhythms.com.
This news release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks. These risks include risks associated with the demand and competition for the services and products to be sold by Rhythms, the continued availability of adequate financing to support our activities, the timing of roll outs in additional regions, the number of potential customers who could access such services, and our dependence on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment. For an expanded discussion on these and additional risks associated with Rhythms' business, please see the documents filed by Rhythms NetConnections Inc. with the U.S. Securities and Exchange Commission.
Perry |
