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Level 3 and tw telecom enter into Settlement-Free Peering Agreement
Agreement Based on Balanced Mileage Principles Addresses Growing Customer Demand
By: PR Newswire
Dec. 3, 2012 07:00 AM
BROOMFIELD, Colo., Dec. 3, 2012 /PRNewswire/ -- Level 3 Communications, Inc. (NYSE: LVLT) and tw telecom inc. (NASDAQ: TWTC) today announced they have entered into a long-term settlement-free Internet traffic exchange agreement.
The settlement-free agreement, commonly referred to as a peering agreement in the Internet industry, allows the two Internet service provider networks to exchange data, enabling Internet customers on one network to send and receive Internet content with customers on the other network more efficiently and cost-effectively.
As the Internet continues to grow and evolve, Internet service providers must exchange Internet traffic in a scalable, resilient and reliable manner, allowing consumers to enjoy the highest performance and fastest speeds that enable new, innovative high-bandwidth applications. Broadband consumers now download much more data than they send, requiring Internet carriers to dynamically adjust traffic routing and interconnection locations to maintain a fair and equitable relationship between the two networks.
The Level 3 and tw telecom peering agreement measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network. This approach is called bit-mile peering. In order to keep the relationship equitable, both networks carry approximately the same "bit miles" of data. This model promotes efficient, high-quality service for customers, while ensuring a balanced cost burden across each network.
"Level 3's primary focus is on providing quality service for Internet consumers," said Jack Waters, Level 3's chief technology officer. "We look forward to working with our peering partners to drive broader adoption of this bit-mile model to ensure fair and equitable interconnection. We are also working with providers of traffic-flow monitoring systems to make the measurement process straightforward and consistent across the industry."
"tw telecom supports this settlement-free Internet peering approach based on bit-mile balance as a model that assures the most efficient interconnection in the evolving Internet," said Harold Teets, tw telecom senior vice president of Network and Information Technologies. "This agreement will support high-quality service for our respective customers, and will keep the backbone cost burden balanced between our two networks."
The Level 3 – tw telecom peering agreement also contains provisions to add capacity and establish new interconnection locations between the two networks to stay ahead of growing traffic demand. This approach offers flexibility to each network while improving performance and reliability for customers and is based on efficient interconnection principles for non-managed Internet traffic. The agreement does not cover the exchange of managed voice traffic.
Please see Level 3's IP Traffic Exchange Policy for more information.
For more information on Level 3's advanced network and service offerings, visit www.level3.com.
About tw telecom
About Level 3 Communications
© Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, Level (3) and the Level 3 Logo either registered service marks or service marks of Level 3 Communications, LLC and/or one of its Affiliates in the United States and/or other countries. Any other service names, product names, company names or logos included herein are the trademarks or service marks of their respective owners. Level 3 services are provided by subsidiaries of Level 3 Communications, Inc.
Website Access to Company Information
Visitors to the Investors Relations web pages can view and print copies of Level 3's SEC filings, including periodic and current reports on Forms 10-K, 10-Q, 8-K, as soon as reasonably practicable after those filings are made with the SEC.
Copies of the charters for each of the Audit, Compensation and Nominating and Governance committees of Level 3's Board of Directors, its Corporate Governance Guidelines, Code of Ethics, press releases and analysts and investor conference presentations are all available through the Investor Relations web pages.
Please note that the information contained on any of Level 3's web sites is not incorporated by reference in, or considered to be a part of, any document unless expressly incorporated by reference in that document.
Some statements made in this press release are forward-looking in nature and are based on management's current expectations or beliefs. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. Important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the company's ability to: successfully integrate the Global Crossing acquisition or otherwise realize the anticipated benefits thereof; manage risks associated with continued uncertainty in the global economy; obtain additional financing, particularly in the event of disruptions in the financial markets; manage continued or accelerated decreases in market pricing for communications services; maintain and increase traffic on its network; develop and maintain effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; adapt to rapid technological changes that could adversely affect the company's competitiveness; defend intellectual property and proprietary rights; obtain capacity for its network from other providers and interconnect its network with other networks on favorable terms; attract and retain qualified management and other personnel; successfully integrate future acquisitions; effectively manage political, legal, regulatory, foreign currency and other risks it is exposed to due to its substantial international operations; mitigate its exposure to contingent liabilities; and meet all of the terms and conditions of its debt obligations. 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 press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
SOURCE Level 3 Communications, Inc.
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