[Level 3 Communications and Union Pacific Railroad Sign Fiber Optic Right of Way Agreement]
copying more pages out of the QWST playbook...
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Agreement Will Provide Level 3 With Key Routes in Western U.S. To Build Its National Fiber Network
OMAHA, Neb., April 2 /PRNewswire/ -- Level 3 Communications, Inc. (NASDAQ:LVLT), through its wholly-owned subsidiary, Level 3 Communications, LLC, and Union Pacific Railroad Company (UNP), today announced jointly that they have signed an agreement granting Level 3 the use of approximately 7,800 miles of rights of way along Union Pacific's rail routes, primarily West of the Mississippi. The agreement, the terms of which were not disclosed, will initially allow Level 3 to construct, operate and maintain its advanced fiber network facilities along rights of way initially connecting 25 cities. Level 3 expects to begin construction of its advanced fiber optic network during the third quarter of 1998.
"This agreement is an important step in our strategic business plan -- by acquiring the use of rights of way along Union Pacific's Railroad's extensive system, we will be able to begin construction of the first phase of our national IP-based network," said Level 3 Executive Vice President and COO Kevin O'Hara. "It will also provide us with the opportunity to create a network that is easily upgradeable -- giving us a competitive advantage over other carriers with older, legacy systems."
"Union Pacific looks forward to working cooperatively with Level 3 as it implements its plan for this enhancement of the nation's telecommunication infrastructure," said Union Pacific Railroad President and Chief Operating Officer Jerry R. Davis. "Our fiber optic program is the industry leader, with more than 25,000 miles of fiber systems already constructed and operating within our rights of way. Our use of fiber optic technology is vital to the effective operation of our rail system."
Level 3's agreement for construction of a network along the Union Pacific rights of way follows a recent data network agreement with Frontier Corporation to lease capacity on Frontier's 13,000 mile SONET fiber optic network. The leased network will encompass approximately 8,300 route miles of OC12 network capacity, initially connecting 15 of the nation's largest cities and valued at approximately $165 million. The lease arrangement with Frontier will give Level 3 an IP-capable network over which it can begin providing service to business customers in several cities during the third quarter of 1998, while Level 3 builds its own IP-based network -- the first national communications network to use Internet technology end-to-end.
Union Pacific Railroad Company is an operating subsidiary of Union Pacific Corporation (NYSE:UNP). It is the largest railroad in North America, operating in the western two-thirds of the United States. The system serves 23 states, linking every major West Coast and Gulf Coast port. It also serves four major gateways to the east: Chicago, St. Louis, Memphis and New Orleans. UP is the primary rail connection between the U.S. and Mexico. It interchanges traffic with the Canadian rail system. Its World Wide Web address is uprr.com.
Level 3 Communications, Inc. is a communications and information services company that is building an advanced fiber optic network across the U.S., based on Internet technology. The company is building local city networks that will be interconnected with a long distance network. The company also has an agreement giving it a leased long distance network over which it can begin to build its customer base while it continues to build its own network. Level 3 will focus primarily on the business market using its network to provide a full range of communications services -- including local, long distance and data transmission as well as other enhanced services and Internet access services. Plans also call for the company to expand internationally. Level 3's common stock is traded on the Nasdaq National Market under the symbol LVLT. Its World Wide Web address is l3.com.
The statements made by Level 3 in this press release, may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that our primary risk factors include, but are not limited to: changes in the overall economy; technology; the number and size of competitors in our markets; law and regulatory policy; and the mix of products and services offered in our target markets. Additional information concerning these and other potential important factors can be found within Level 3's SEC filings. You should evaluate any statements in light of these important factors.
SOURCE Level 3 Communications
-0- 04/02/98
/CONTACT: Media: Josh Howell, 402-943-1309, or Steve Ingish, 402-943-1337, or Investors: Julie Stangl, 402-943-1310, all of Level 3 Communications; or John Bromley of Union Pacific, 402-271-3475/ |
