Level 3 and New T&T Enter Strategic Agreement to Bring IP Backbone Service and Low Cost Bandwidth to Hong Kong
Local Internet Companies Gain Direct Access To International Broadband Undersea Cable
BROOMFIELD, Colo., Sept. 14-- Level 3 Communications Inc. (Nasdaq: LVLT - news) and New T&T, the fastest growing Fixed Telecommunications Network Service (FTNS) operator in Hong Kong, today jointly announced the signing of a strategic agreement, which will provide the local Internet community with direct access to Level 3's high capacity undersea cable and bolster New T&T's network services.
Under the terms of the agreement, New T&T will provide fully redundant and diverse backhaul capacity to Level 3's Hong Kong-Japan cable, which will be landed in the second quarter of 2001. The backhaul network will connect Level 3's cable landing station on Lantau Island and its gateway in Quarry Bay, linking up the local Internet community directly with Level 3's broadband submarine cable and its global IP network end-to-end. Level 3 will provide significant capacity on its Hong Kong-Japan cable to New T&T, which will become an important element in enhancing New T&T's global IP network capability by connecting to its trans-pacific Japan-US investment.
The agreement strengthens both companies' positions in the market and delivers significant cost benefits of international bandwidth to the local Internet community. With direct access and connection to a global, IP-based network, web-centric companies in Hong Kong could enjoy up to 60 percent cost savings on international capacity.
``Currently the cost of bandwidth into key Asian markets averages around eight times higher than in the United States or Europe. Our agreement with New T&T allows us to deliver increased, low-cost bandwidth to Hong Kong,'' said Steve Liddell, chief executive officer of Level 3 Asia.
``New T&T is delighted to have concluded this agreement with Level 3,'' said Stephen Ng, chairman and managing director of New T&T. ``As a direct result, we can now offer redundant, end-to-end IP backbone services globally to major traffic hubs, such as the United States, and intra-Asia to cope with New T&T's Building e-Connections strategy and the rapid growth of Internet and e-commerce demand.''
``New T&T's local network infrastructure and submarine cable investment will ensure high availability and reliability in the IP backbone services that we are going to provide to meet the premium quality requirement in the business world. Our existing WebTone customers and ISPs, ICPs, ASPs hosted in our network will also immediately benefit from this infrastructure. With the support of our local and international IP infrastructure, these providers can focus more on content and applications development which are the key to their success,'' said Ng.
The announcement is another milestone leading to the opening of Level 3's Hong Kong gateway, the first in Asia for the company. The completed cable system -- which will be launched in the second quarter of 2001 -- will be the first high capacity broadband cable system to be launched in Hong Kong and will increase the capacity out of the bandwidth-starved SAR by eight times.
Level 3 established its Asia headquarters in Hong Kong in May 1999 and has since made substantial progress in bringing its Internet-focused business strategy to the region. The company announced in January plans to build the first leg of its North Asia cable system connecting Japan to Hong Kong. Level 3 expects the cable to be ready for service in the second quarter of 2001. Level 3 is also in the advanced stages of building gateway facilities in Hong Kong's Quarry Bay and the Minato-ku district of Tokyo. Services will launch in the third and fourth quarter of this year in Hong Kong and Japan respectively.
About Level 3 Communications
Level 3 (Nasdaq: LVLT - news) is a global communications and information services company offering a wide selection of IP-based services including broadband transport, colocation services, submarine transmission services and the industry's first Softswitch* based services. Level 3 offers services primarily to web-centric companies that deliver their services over the Level 3 Network. The Level 3 Network will include metropolitan networks in 56 U.S. markets and 21 European and Asian markets connected by an approximately 16,000 mile U.S. intercity (long-distance) network, an approximately 4,750 mile European intercity network, both transpacific and transatlantic undersea cables and 6.5 million square feet of gateway and technical space. Level 3 expects to substantially complete the U.S. and second ring European intercity network by the fourth quarter of 2000. Level 3 currently offers broadband infrastructure services in 38 U.S. markets and five European markets. Its Web address is www.Level3.com.
(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
About New T&T
New T&T, licensed in 1995, is the fastest growing fixed telecommunication network operator since the opening of Hong Kong's fixed telecommunication market. Since its launch, the Company has sought to bring improved service, enhanced product range and competitive prices to Hong Kong business and people. New T&T operates the largest fibre optic network in Hong Kong with the laying of over 1.7 million metres of fibre optic cable with the aim of increasing this to 1.8 million metres by the end of the year. New T&T is a member of The Wharf Group of companies, one of the largest groups of companies in Hong Kong. The group also owns i-CABLE Communications Limited, the No 1 Television Station in Hong Kong for News, Movies and Sports and a leading Internet access service provider. For further information on both New T&T and The Wharf Group, please refer to the New T&T website at www.newtt.com.
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: substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; changes in the overall economy; 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.
SOURCE: Level 3 Communications Inc. |
