Level 3 and XO Communications Sign Settlement-Free Peering Agreement Agreement Based on "Bit-Mile" Balance Provides Customers with Efficient, Cost-Effective Service
BROOMFIELD, Colo., Jan. 7, 2013 /PRNewswire/ -- Level 3 Communications, Inc. (NYSE: LVLT) and XO Communications today announced they have entered into a long-term settlement-free Internet traffic exchange agreement, also commonly referred to as a peering agreement, that is based on the bit-mile balance approach.
The peering agreement ensures that customers on each of the two Internet service providers' networks can continue to exchange data with customers on the other service provider's network efficiently and cost-effectively. It is based on the bit-mile peering approach which measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network. In order to keep the relationship equitable and settlement-free, both networks carry approximately the same bit-miles of data, a model that promotes efficient, high-quality service for customers, while ensuring a balanced cost burden across each network.
As the Internet continues to grow and evolve, this approach resolves the imbalances that can occur in traffic patterns and that would otherwise result in increased network costs to one provider or the other involved in a peering relationship. When asymmetry occurs, the Internet traffic carriers agree to adjust traffic routing and interconnections to maintain a fair and equitable relationship between the two networks. They must also maintain the ability to exchange traffic in a scalable, resilient and reliable manner so that consumers can enjoy the best possible Internet experience. The bit-mile arrangement ensures this consumer benefit while doing so in a way that is equitable to both Level 3 and XO.
"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."
"XO Communications supports equitable settlement-free peering to ensure fair and unconstrained interconnection," said Randy Nicklas, senior vice president and chief technology officer, at XO Communications. "This agreement will ensure a balanced backbone cost burden between our two networks as we continue to grow while providing high-quality service for our respective customers."
The 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.
About XO Communications
XO Communications is a leading nationwide provider of advanced IP communications, managed network and hosted IT services for business, large enterprise and wholesale customers. These customers include more than half of the Fortune 500, in addition to leading cable, mobile wireless and domestic and international telecommunications companies. XO offers a superior customer experience through its innovative solutions, its employees' focus on customers and the proven performance of its advanced network. To learn more about XO Communications, visit www.xo.com or blog.xo.com. XO Communications is also on Twitter, YouTube, Facebook and LinkedIn.
About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) provides local, national and global communications services to enterprise, government and carrier customers. Level 3's comprehensive portfolio of secure, managed solutions includes fiber and infrastructure solutions; IP-based voice and data communications; wide-area Ethernet services; video and content distribution; data center and cloud-based solutions. Level 3 serves customers in more than 450 markets in 45 countries over a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities. For more information, please visit www.level3.com
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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.