Transcript Level(3) story - Communication Management Services

The Level 3 Story
Introduction to Level 3
© 2006 Level 3 Communications, Inc. All rights reserved. Level 3 Communications,
Level 3 and the Level 3 logo are registered service marks of Level 3 Communications,
Inc. in the United States and/or other countries. Proprietary and Confidential.
Overview
Level 3 Profile
Level 3 History
Leadership Team
The Right Network
The Right Services
Investing in Growth
Trusted by Industry Leaders
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2006 Level 3 Communications, Inc. All Rights Reserved.
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Level 3 Profile
A premier provider of services over one of the world’s most
advanced, IP-optimized networks
Established: 1998
Headquarters: Broomfield, CO
2005 Annual Revenue: $3.6 Billion
Employees: 5,800
Four Groups
 Wholesale Markets
 Content Markets
 Business Markets
 European Markets
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Customers:
 MySpace, Yahoo!, YouTube, British Telecom,
The Hershey Company, Internet2, Comcast
Network:
 One of the largest global Internet backbones
Services:
 Complete portfolio of voice, data, video and
Internet services
2006 Level 3 Communications, Inc. All Rights Reserved.
Broomfield Headquarters
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Level 3 Heritage
A
World-Class
Operator
Start-up and
Construction
• Raised $14 billion; called the “best
funded start-up in history”
• Attained the highest operating
margins in the industry
• Dug 19,600 route miles and built the
world’s first continuously upgradeable
network that is fully optimized for IP
• Invested in systems to become a
world-class operator
• Some of the world’s most
sophisticated communications
companies trust Level 3 for their
network services
2000
Consolidator
and VoIP
Leader
• Acquired WilTel, Progress Telecom,
ICG, TelCove and Looking Glass
Networks — building on 2003
acquisition of Genuity
• Selected to support 16 of the 17
largest recent VoIP roll-outs
• Robust quarter-over-quarter growth in
new VoIP services
2004
1998
2006
2002
Post-Bubble
Agility
Filling the
Network
• Explosive demand for bandwidth fuels
growth in sales
• Pursued a unique strategy that focused on both
the balance sheet and investing for an inevitable
industry rebound
• By end of 2000, Level 3 provided service
to 2,700 customers
• Investors showed confidence as Level 3 raised
more money than all NexGen carriers combined
• Became one of the top three Internet traffic
carriers
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2006 Level 3 Communications, Inc. All Rights Reserved.
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Leadership Team
James Q. Crowe
Kevin J. O’Hara
Charles C. Miller, III Sunit Patel
Craig Butrym
Sureel Choksi
Chief Executive Officer
President & Chief
Operating Officer
Executive Vice President,
Vice Chairman
Managing Director,
Europe
President, Wholesale
Markets
Don Gips
Robin Grey
Robert E. Guth
Kevin Hart
J. Neil Hobbs
Joseph M. Howell, III
Group Vice President,
Corporate Strategy
Senior Vice President,
Treasurer
President, Business
Markets
Group Vice President,
Chief Information Officer
President, Global
Network Services
Group Vice President,
Corporate Marketing
Brady Rafuse
Lynn Refer
Thomas C. Stortz
Jack Waters
Christopher P. Yost
President, Content
Markets and Chief
Executive Officer, Europe
President, Metro
Network Services
Executive Vice President,
Chief Legal Officer
Chief Technology Officer
Group Vice President,
Human Resources
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Chief Financial Officer
2006 Level 3 Communications, Inc. All Rights Reserved.
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Level 3 – The Right Network
Designed to maximize coverage, performance, flexibility and scalability
More Long-Haul and Metro Route Options than Other Providers
 > 77,000 intercity route miles available in North America and Europe
 > 21,000 metropolitan route miles
High-Capacity, Nationwide Backbone
 Overbuilt backbone with new DWDM, IP and private-line switching layers in 2005
 Long-haul capacity grew 50% this year and will double every two years
 IP backbone capacity tripled between 3Q05 and 1Q06
Expanding Voice Footprint
 Connectivity to every long distance tandem office in the U.S., as well as a large
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and growing number of end offices
Ability to terminate calls anywhere in the world over the Level 3 Network
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Level 3 – The Right Network
Principal Locations:
-- Broomfield, Colorado: Corporate HQ and NOC
-- Tulsa, Oklahoma: NOC
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-- London: European HQ and NOC
-- Atlanta, Georgia: NOC
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Level 3 – The Right Services
Complete Portfolio of Data, Voice and VoIP services
 Only carrier with Tier 1 status and leadership across wholesale IP, wavelength and dark fiber
 Uniquely positioned to support migration from TDM- to IP-based voice applications
On-going Investments to Keep Pace with Rapidly Evolving Customer
Requirements
 NexGen DWDM enables deployments in 100 Gbps increments
 VoIP infrastructure in place to accommodate rapid growth
 Roadmap to 40 Gbps waves; 10 GigE LAN PHY waves already available
One of the Largest IP Backbones in the World
 World-class peering with over 470 Gbps of global peering capacity
 More than 5.1 petabytes of traffic per day
Unique ability to invest in and serve enterprises’ telecommunications needs
 Premium, high-availability fiber builds enable us to connect companies to international network
footprint, network services, and business applications
 Collaborative account service with local support for buying decisions — Level 3 is the only
provider exclusively focused on the needs of business customers versus residential
Flexibility to Create Custom Network Solutions at All Layers
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Level 3 – The Right Services
Every Level 3 Network “layer” (and service) can rapidly leverage the others.
Customers have the flexibility to create custom solutions at all layers.
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2006 Level 3 Communications, Inc. All Rights Reserved.
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Trusted by the World’s Largest Bandwidth Consumers
Our services support:
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Wireless companies
Cable companies
Voice service providers
RBOCs, ILECs, and International PTTs
Internet content providers
Media and entertainment companies
Research and academic institutions
Government agencies
Customers Include:
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18 of the world’s top 20 telecom carriers
8 of the top 10 carriers in Europe
3 of the top 4 carriers in Asia
8 of the top 10 U.S. Internet service
providers
9 of the top 10 U.S. cable companies
4 of the top 5 U.S. wireless service
providers
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2006 Level 3 Communications, Inc. All Rights Reserved.
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2006 Industry Recognition
Global Comm Award of
Excellence
(June 2006)
 Excellence in Network Design and
Services
Frost and Sullivan Growth
Strategy Leadership Award
(May 2006)
 SONET services
ATLANTIC-ACM Wholesale
Report Card (March 2006)
 Awards for customer service and
billing based on Customer
Satisfaction Survey
ATLANTIC-ACM Metro Carrier
Report Card (October 2006)
 Best in Class across five
categories
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2006 Level 3 Communications, Inc. All Rights Reserved.
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Investing in Growth
Level 3 is prepared to grow with your business into the long term
Top- and bottom-line growth – and continued investor confidence –
is fueling network augmentation
 ICG, Looking Glass, Progress Telecom, TelCove and WilTel acquisitions
 Physical build-outs
Investing resources in expansion
 Expanding into new buildings and increasing on-net footprint
 Now a major national provider of metro and regional services
 More than 5,700 traffic aggregation points in over 110 local markets
Implementing organizational structure to enhance responsiveness
 Dedicated support for regional businesses
 Customer-focused organizations to help ensure readiness for industry
opportunities
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2006 Level 3 Communications, Inc. All Rights Reserved.
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