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Level 3 Overview

Level 3 is a global leader in providing advanced, IP-optimized networks, offering a complete portfolio of voice, data, video, and internet services to brand name customers. With a high-capacity backbone and extensive network coverage, Level 3 is the right choice for businesses seeking reliable and scalable solutions.

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Level 3 Overview

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  1. Level 3 Overview

  2. Established: 1998 Headquarters: Broomfield, CO 2006 Annual Revenue: $3.4 Billion ($900 Million – Broadwing) Employees: 5,800 Four Groups Wholesale Markets Content Markets Business Markets European Markets Level 3 Profile A premier provider of services over one of the world’s most advanced, IP-optimized networks • 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 Broomfield Headquarters

  3. Why do Brand Name Customers buy from Level 3? 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 and growing number of end offices • Ability to terminate calls anywhere in the world over the Level 3 Network

  4. Why do Brand Name Customers buy from Level 3? Level 3 – The Right Services • Complete Portfolio of Data, Voice and VoIP services • Only carrier with Tier 1 status and leadership across wholesale IP and wavelengths • Uniquely positioned to support migration from TDM- to IP-based voice applications as well as traditional TDM app • 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 • 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

  5. Our Value Proposition To Our Partners Why Level 3? • Level 3 delivers a better partner program with a commitment to partner success. • Focused field support • $3B spent in past year on companies focused on the enterprise • Sales promotions and sales contests designed to increase sales. • The recent acquisitions provide a broader service portfolio and network reach. • 6000 lit buildings and 120 markets across the U.S. • Greater than 5,700 total traffic aggregation points. • 77,000 intercity miles of IP transit • Continuously upgradeable network optimized for IP technology We are THE Alternative to the ILECs.

  6. Our Value Proposition To Our Partners’ End Users IT’S THE NETWORK QUALITY AND REACH • Unparalleled IP network performance • Level 3 outperforms its competitors 74% of the time for on-net latency • Ranked top 3 among competitors for availability and low packet loss • Customers reach global Internet destinations in an average of 1.77 hops, fewer than most any other provider • Half of the traffic that originates on the Level 3 network, stays on the Level 3 network, allowing us to better control performance, therefore making Level 3’s SLAs more meaningful • Only carrier with Tier 1 status and leadership position in wholesale IP, wavelength, dark fiber • The broadest available portfolio of IP services (with added voice services) in the U.S and Europe • Nearly 6000 lit buildings in 120 Markets.

  7. Acquisitions are driving our Indirect Sales focus

  8. Level 3 reaches IP traffic Milestone •  At the close of February, we recorded, a total of one Tbps of global IP billable traffic on our Network. • In 2000 Level 3 had less than 10 Giga Bits Per Second (Gbps) of billable IP traffic moving across our network. • IP traffic has, on average, at least doubled each year since. • One Tbps of IP traffic is equivalent to: • 1,250,000 photos per second or 108,000,000,000 photos per day         • 31,250 songs per second or 2,700,000,000 songs per day   • Tbps of billable IP traffic is a significant accomplishment for Level 3.     

  9. Level 3: The Leader in IP Industry Recognition • Smithsonian Institution “The world’s first upgradeable international fiber optic network to be completely optimized for Internet Protocol technology, helping to stimulate the biggest change in telecommunications technology in 100 years.” • Total Telecom Magazine World Communication Award Best Wholesale Carrier • TMC Labs Innovation Award • SuperQuest Network Infrastructure Award • Yankee Group Wholesale Carrier Award “Buyers consider AT&T and Level 3 the best wholesale vendors.” • Internet Telephony’s Product of the Year (for E-911) Customer Recognition • eBay Vendor of the Year • Microsoft Vendor of the Year for Quality “Level 3 Communications exhibited exemplary business integrity, openness and an emphasis on customer care.” “

  10. Featured Services

  11. Business Services Metro Ethernet and Intercity Ethernet Intercity & Metro Private Line Multi Connect High Speed IP Dedicated Internet Access (DIA) Ethernet VPN Converged VPLS IP VPN Primary Rate Interface (PRI) Enhanced Toll Free Collocation (Cabinets) SIP Trunking for Cisco Call Manager Express SMB VoIP Bundle (TBA) Wholesale Services (ICB only at this time) • Intercity and Metro Wave Length 2.5 / 10 G • Voice Termination • International VT • Toll Free • 1 Plus • Managed Modem • Collocation (Suites) Business Partner Program Services - Highlights

  12. Level 3 North America Metro Markets

  13. Broadwing Network View

  14. Best in Class On-Net Latency In head-to-head comparisons, the Level 3 advantage is clear! Level 3 outperforms competitors 73% of the time with 32% better performance Sources: Latency measurements for Level 3 competitors on specific routes obtained from Keynote Internet Health Report Pro. Level 3 latency measurements obtained using Level 3 Network monitoring equipment closely approximating Keynote’s. Metrics apply for the period 1/1/2005 through 3/30/2005. Performance improvement reflects latency only. Sources: Latency measurements for Level 3 competitors on specific routes obtained from Keynote Internet Health Report Pro. Level 3 latency measurements obtained using Level 3 Network monitoring equipment closely approximating Keynote’s. Metrics apply for the period 10/1/2005 through 12/27/2005. Performance improvement reflects latency only.

  15. Outstanding Availability and Low Packet Loss Level 3 continues to achieve very high performance rankings, despite tremendous IP traffic volumes and growth Low packet loss, high availability and best–in-class latency delivers unparalleled network performance. Source: Level 3 packet loss data measured by Level 3 performance monitoring equipment and compared route-for-route with other service providers’ packet loss measured by Keynote. Availability data for all providers measured by Keynote. All measurements taken 11/1/2005 through 12/31/2005.

  16. The Shortest Distance to the Whole Internet • Level 3’s performance advantage is partly due to our network design. • Our network is architected to reach any destination on the Internet with the fewest possible hops. Fewest hops Level 3 customers reach global Internet destinations in an average of 1.77 hops. Source: http://www.fixedorbit.com/metrics.htm The Internet user has a better, faster experience.

  17. Featured Services

  18. Featured Services

  19. Featured Services

  20. Appendix

  21. Level 3 Ethernet Portfolio

  22. A-Loc Z-Loc Metro Ethernet Overview • E-Line • Point to Point Metro Ethernet over SONET • Both locations on-net • If location is off-net contact your PSM to explore feasibility for building fiber into the building.

  23. Level 3 POP B-Loc A-Loc D-Loc Metro Ethernet Overview • E-LAN B-Loc C-Loc • Hub and Spoke Topology • A, B ,C and D, locations all speak to Level 3 POP / Collocation • All locations are on-net and Ethernet capable. • If the location is off-net contact your PSM for feasibility of bringing fiber into the building.

  24. Metro Ethernet Overview • Supported configurations • Point to Point (E-LINE) • Multipoint (E-LAN) • Speeds (Subject to availability) • Fast Ethernet handoff – 10, 20, 30, 40, 50, 100Mbps • Gigabit Ethernet handoff – 100, 200, 300, 400, 500, 600, 1,000Mbps • 10G • Metro Ethernet is dedicated and protected using Level 3 SONET rings • Type I – entire circuit is on Level 3 network • Installation Intervals • Available locations/speeds • 30 business days for locations with existing Ethernet equipment • 45 business days for location without existing Ethernet equipment • 90 – 120 Days when a fiber build and equipment installation is required.

  25. Intercity Ethernet Portfolio

  26. Intercity Ethernet Private Line Overview Level 3 POP Level 3 POP Level 3 Long Haul Network Metro Ethernet Metro Ethernet A-Loc Z-Loc • Supported configurations • Point to Point (E-LINE) • Speeds • Current Long Haul routes can support 50, 600, 1,000Mbps • Intercity Ethernet can only be accessed using Metro Ethernet in Metro Ethernet available locations • Intercity Ethernet Private Line is dedicated and protected using Level 3’s Long Haul Private Line network • Pricing structure based on mileage

  27. What is Level 3 High Speed IP? • A dedicated wholesale Internet access service that rides on Level 3’s continuously-upgradeable IP, transport, and physical networks • Trusted by the largest global users of wholesale Internet bandwidth • A HSIP service that supports your needs for scalability and outstanding performance • Tailored to meet the varied needs of high-bandwidth customers using a broad range of IP transit and network interconnection solutions

  28. An Extraordinary Community of On-Net Customers Customers enjoy outstanding performance through direct on-net connectivity to the world’s leading content providers and “eyeball aggregators” • More than half of traffic that originates on the Level 3 Network stays on the Level 3 Network • Direct, on-net connectivity to the world’s largest ISPs and most popular Internet destinations • Level 3’s Network is the Internet Why is staying on-net important? • A non-Tier 1 ISP with a high, published SLA and an open-peering policy actually has a meaningless SLA; the SLA only covers the distance a packet actually travels on the provider’s network. • Non-Tier 1 ISPs use their peering and transit infrastructure heavily. • Your latency or packet loss from actual source to sink may be poor, but this ISP can still quote good results, since they only carry your traffic a fraction of its actual distance.

  29. Size Matters The scale and geographic reach to handle your growth Connect to Level 3 at the highest interface speed available today (10 GigE) to reduce capital expenditure, simplify traffic management and capacity planning and reduce the number of times the network is touched

  30. Flexible Billing Options • CDR • Flexible billing based on a minimum usage setting • Additional usage above minimum charged at rate per Mbps • Ideal for monthly variable usage needs • ACDR • Flexible billing based on a minimum usage setting • Additional usage above minimum charged at rate per Mbps • Ideal for customers that require Internet access in multiple locations • Fixed Rate • Fixed usage billing based on port size, no variance per month • Ideal for static monthly billing requirements

  31. Dedicated Internet Access (DIA) • DIA is enterprise focused • DIA service differentiators: • Primary & Secondary DNS service • Managed Router service • Fixed Rate billing plan for all speeds • DIA service Interfaces • Ethernet (ICB) • FastE, GigE • TDM/SONET • DS-1, NxDS-1, DS-3, OC-3, OC-12, OC-48

  32. Why Level 3 DIA • DIA Value Proposition • A network large enough to accommodate your current traffic • A network with the ability to scale to accommodate your growth • An IP service that performs with superior latency, availability, and packet loss • An important community of the most popular on-net destinations • A sound peering infrastructure with clean and balanced traffic among peers • A company committed to your performance • A company committed to its IP business model, that continues to invest in its network • A company that is continually awarded for service quality • A company that is recognized as a top IP provider by its customers

  33. DIA Access Options • Cross-Connects • Collocation facilities and Meet-me rooms • Metro Access Circuits • Metro Private Line DS1, NxDS1, DS3, OC3 – OC48 • Managed Ethernet Access (ICB) • Level 3 Managed Ethernet Access • DS-1, NxDS-1, DS-3, NxDS-3, OC-3 and OC-12 (Type I or Type II) • Enables access to multiple Level 3 Data/IP services (e.g.: Ethernet VPN, IP VPN, DIA) over a single local access connection • End-to-end, turnkey solution with 24 x 7 monitoring and management • Customer Premise Equipment (CPE) install, test, turn-up, repair, etc. • Premise-to-premise SLAs, including CPE • Type-II Access • Type-II TDM/SONET Access

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