December 4, 2001 — (WEB HOST INDUSTRY REVIEW) — Level 3 Communications, Inc. (level3.com) today announced plans to expand its European network.
The company plans to begin offering services in eight additional marketsacross Western Europe in 2002. The markets are Geneva, Madrid, Milan,Stockholm and Zurich, and the German cities of Cologne, Karlsruhe andStuttgart.
Level 3 plans to acquire wavelengths or other existing lit capacity fromother carriers operating in the region, over which it can offer a fullcomplement of communications services to its customers. “These plans willdramatically increase the size of our European footprint,” said KevinO’Hara, Level 3′s president and chief operating officer. “Once the expansionis complete, Level 3 will be able to deliver services to 17 of the topmarkets on the continent. Our existing and prospective customers have beenencouraging us to initiate this expansion, and I expect it to afford themeven greater access to the significant operational, provisioning and costadvantages Level 3 provides.”
Level 3 offers a range of communications services targeted toward theworld’s top 300 bandwidth customers, including wavelengths, private line,dark fiber, managed modem and IP services. Level 3′s current customersinclude companies such as America Online, BT, Cable & Wireless, COLT TelecomGroup, France Telecom and Microsoft.
O’Hara said that the company’s decision to use wavelengths or other existinglit capacity will enable it to expand at a fraction of the cost that wouldbe required with new construction.
“Level 3 remains in an extremely strong financial position, withapproximately $2.5 billion in available liquidity as of the end of the thirdquarter,” O’Hara said. “Continued turmoil across the communications industryhas underscored the strategic advantage of our cash position. In order tomaintain that advantage, we are undertaking the expansion in Europe in a waythat will require minimum capital outlays. In that way, we can better servethe needs of our customers while preserving our pre-funded status andfunding cushion.”
