BROOMFIELD, Colo., April 28, 2016 /PRNewswire/ -- Level 3 Communications (NYSE: LVLT) issued the statement below in reaction to steps taken at today's Federal Communications Commission (FCC) meeting to unlock the market for business data services (formerly known as "special access" services).
For more than a decade, the FCC has investigated the competitiveness of pricing and terms for business data services – including "demand lock up terms," which forestall competition for these services – to protect consumers, competitors and the broader U.S. economy. The FCC's data, collected in the most thorough examination of this market ever conducted, reveals incumbent telephone companies are the only providers of these services in 77 percent of locations.
Today, the FCC voted to adopt an Order and Further Notice of Proposed Rulemaking, which begins the process of breaking the incumbents' hold on this market for the benefit of consumers, competitors and the broader U.S. economy.
Below is a statement from Joseph Cavender, vice president and assistant general counsel for federal affairs at Level 3 Communications:
Level 3 congratulates the FCC for adopting an Order that will help unlock the $45 billion-per-year market for business data services. U.S. consumers use and indirectly pay for these services every time they use their smart phone, take money from an ATM, or make a purchase with a credit or debit card. Freeing up the market is a critical step in unleashing competition for these vital network services and spurring a virtuous cycle of innovation and investment for the U.S. economy. Thanks to the leadership of Chairman Wheeler and his colleagues, we believe some relief may finally be in store for customers in the business data services market. The proposed rulemaking also adopted today sets the stage for the necessary next steps to more generally fix this broken market. Getting these reforms right will be critical to enhancing wireless broadband deployment, spurring competition, investment and innovation, and reducing costs in healthcare, education and nearly every sector of the economy. We look forward to working with the FCC toward achieving those objectives.
About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) is a Fortune 500 company that 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 500 markets in over 60 countries across a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities. Level 3 services are provided by subsidiaries of Level 3 Communications, Inc. For more information, visit www.level3.com or get to know us on Twitter, Facebook and LinkedIn.
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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: increase revenue from its services to realize its targets for financial and operating performance; develop and maintain effective business support systems; manage system and network failures or disruptions; avert the breach of its network and computer system security measures; develop new services that meet customer demands and generate acceptable margins; manage the future expansion or adaptation of its network to remain competitive; defend intellectual property and proprietary rights; manage risks associated with continued uncertainty in the global economy; manage continued or accelerated decreases in market pricing for communications services; obtain capacity for its network from other providers and interconnect its network with other networks on favorable terms; 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.