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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: David Klein who wrote (1061)	6/15/1998 5:34:00 PM
From: David Klein	Read Replies (3) \| Respond to of 3873

Went to the presentation in NY today given by Jim Crowe. Here are some notes in no particular order. -Their IP network will interconnect with the public network so anyone can use L3 for service like any other provider. I think this is one reason for the XCOM purchase. -The system is IP but is not over the internet. They will build a local and LD network. They want an end to end network for the cities where they will construct their network. -Plan is broken down into 5 phases. Each phase is independent and designed to service debt w/o additional capital. They have the $ for 1st 2 phases. -P1 consists of connecting 25 cities with about 9000 miles of fiber. -p5 consists of 50 US cities (15000 mile network) 13 Euro. cities (3000 mile network) -total cost 8-10 billion -self healing sonet rings -DWDM -No circuit switches -all fiber in conduits. Looking to install 8 conduits (7 empty). The technology keeps improving at a rapid rate so they want an upgradable system. - If you consider the outside investments marked up to market value then book value is about $25/sh. -PKSIS wraps existing software with new software to move systems to IP. They also are involved in possible Y2 solutions. -right of way agreement with RR. Do not pay until fiber is turned up. -Cost to transmit a CD Rom from NY to LA is 1.98 on ISP vs 27.08 on PSTN. I thought the presentation was very good. They believe IP networks are the future in Telecommunications.