Level 3 Inks New Dark Fiber and Associated Services Agreements

Level 3 Communications, Inc. (Nasdaq: LVLT) today announced it has signed new dark fiber and associated services agreements valued at more than $700 million. Sales of dark fiber and associated services for the year are valued at more than $2 billion.

Nov 29th, 2000

Level 3 Communications, Inc. (Nasdaq: LVLT) today announced it has signed new dark fiber and associated services agreements valued at more than $700 million. Sales of dark fiber and associated services for the year are valued at more than $2 billion.

Services related to dark fiber include colocation and operation and maintenance services and represent approximately 50 percent of the value of these contracts. The company will recognize the revenue over the course of the agreements, which generally run for 15 to 20 years.

The new contracts Level 3 has executed during the quarter so far are for services in both Europe and North America. Two significant customers are:

  • McLeodUSA Inc. (Nasdaq: MCLD), an integrated communications provider offering services throughout the Midwest and Rocky Mountain regions of the United States. McLeodUSA, an existing Level 3 customer, will purchase additional network infrastructure from Level 3 in North America.

    Roy Wilkens, McLeodUSA President and CEO Data Network Services, said the agreement with Level 3 is part of a broader plan by McLeodUSA to offer next-generation network services in more than 50 cities within its 25-state regional footprint. "Selected routes will be coming into service in 2001, with full operability planned over the next two years," Wilkens said.

  • XO Communications, Inc. (Nasdaq: XOXO), a global provider of broadband communications services based in Reston, VA. XO will buy fiber on Level 3's inter-city network in Western Europe; metropolitan fiber in Paris; and metro conduits in eight other European markets. The company will also purchase capacity on Level 3's transatlantic fiber optic cable.

    With the new agreements, Level 3 has now signed dark fiber and associated services contracts with more than 45 companies in Europe and America during 2000.

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