Level 3 and BellSouth Reach Agreement on Inter-Carrier Compensation; Level 3 Now Has Long-Term Agreements for ISP-bound Traffic in 34 States

Apr 10, 2001, 01:00 ET from Level 3 Communications, Inc.

    BROOMFIELD, Colo., April 10 /PRNewswire/ -- Level 3 Communications, Inc.
 (Nasdaq: LVLT) today announced it has reached an agreement with BellSouth
 Telecommunications, Inc. (NYSE:   BLS) that establishes new rates for the
 exchange of local and Internet service provider (ISP)-bound traffic.  The
 agreement covers the nine-state BellSouth operating region and also resolves
 issues regarding points of interconnection.
     "This negotiated agreement is another positive step toward creating a
 market-based rate structure for all inter-carrier compensation and moves those
 rates closer to cost," said Bill Hunt, vice president of public policy for
 Level 3.  "This agreement brings to 34 the number of states where Level 3 has
 secured agreements that provide payment for terminating ISP-bound traffic."
     Level 3 has previously announced agreements with Verizon and SBC
 Corporation.
     Inter-carrier compensation agreements set rates for transmission and
 switching services provided by one carrier to complete or carry traffic
 originating on another carrier's network.  The agreement covers both Local
 Traffic and ISP-bound traffic for all states in the BellSouth operating region
 through December 2003.  The per-minute rates are $.00175 for 2001, $.0015 for
 2002, and $.001 for 2003.  Under the Telecommunications Act, the agreements
 will be filed with the appropriate state commissions, which will then take
 action within 90 days of the filing.
 
     About Level 3 Communications
     Level 3 (Nasdaq: LVLT) is a global communications and information services
 company offering a wide selection of services including IP services, broadband
 transport, colocation services and the industry's first Softswitch based
 services.  Level 3 offers services primarily to communications intensive
 companies that deliver their services over the Level 3 Network.  Its Web
 address is www.Level3.com.
 
     Some of the statements made by Level 3 in this press release are forward-
 looking in nature.  Actual results may differ materially from those projected
 in forward-looking statements.  Level 3 believes that its primary risk factors
 include, but are not limited to: substantial capital requirements; development
 of effective internal processes and systems; the ability to attract and retain
 high quality employees; changes in the overall economy; technology; the number
 and size of competitors in its markets; law and regulatory policy; and the mix
 of products and services offered in the company's target markets.  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 release should be evaluated in light of these important factors.
 
     For further information please contact Media, Josh Howell, 720-888-2517,
 or Paul Lonnegren, 720-888-6099, or Investors, Robin Miller 720-888-2518, all
 of Level 3 Communications, Inc.
 
 

SOURCE Level 3 Communications, Inc.
    BROOMFIELD, Colo., April 10 /PRNewswire/ -- Level 3 Communications, Inc.
 (Nasdaq: LVLT) today announced it has reached an agreement with BellSouth
 Telecommunications, Inc. (NYSE:   BLS) that establishes new rates for the
 exchange of local and Internet service provider (ISP)-bound traffic.  The
 agreement covers the nine-state BellSouth operating region and also resolves
 issues regarding points of interconnection.
     "This negotiated agreement is another positive step toward creating a
 market-based rate structure for all inter-carrier compensation and moves those
 rates closer to cost," said Bill Hunt, vice president of public policy for
 Level 3.  "This agreement brings to 34 the number of states where Level 3 has
 secured agreements that provide payment for terminating ISP-bound traffic."
     Level 3 has previously announced agreements with Verizon and SBC
 Corporation.
     Inter-carrier compensation agreements set rates for transmission and
 switching services provided by one carrier to complete or carry traffic
 originating on another carrier's network.  The agreement covers both Local
 Traffic and ISP-bound traffic for all states in the BellSouth operating region
 through December 2003.  The per-minute rates are $.00175 for 2001, $.0015 for
 2002, and $.001 for 2003.  Under the Telecommunications Act, the agreements
 will be filed with the appropriate state commissions, which will then take
 action within 90 days of the filing.
 
     About Level 3 Communications
     Level 3 (Nasdaq: LVLT) is a global communications and information services
 company offering a wide selection of services including IP services, broadband
 transport, colocation services and the industry's first Softswitch based
 services.  Level 3 offers services primarily to communications intensive
 companies that deliver their services over the Level 3 Network.  Its Web
 address is www.Level3.com.
 
     Some of the statements made by Level 3 in this press release are forward-
 looking in nature.  Actual results may differ materially from those projected
 in forward-looking statements.  Level 3 believes that its primary risk factors
 include, but are not limited to: substantial capital requirements; development
 of effective internal processes and systems; the ability to attract and retain
 high quality employees; changes in the overall economy; technology; the number
 and size of competitors in its markets; law and regulatory policy; and the mix
 of products and services offered in the company's target markets.  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 release should be evaluated in light of these important factors.
 
     For further information please contact Media, Josh Howell, 720-888-2517,
 or Paul Lonnegren, 720-888-6099, or Investors, Robin Miller 720-888-2518, all
 of Level 3 Communications, Inc.
 
 SOURCE  Level 3 Communications, Inc.