Level 3 Announces Residential VoIP Phone Services
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[March 29, 2004]

Level 3 Announces Residential VoIP Phone Services

SANTA CLARA, Calif., March 29 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. today announced that it is launching two new residential VoIP services to more than 300 of the largest markets in the U.S. by the end of 2004, with service availability beginning during the second quarter.


The new services, (3)VoIP(SM) Enhanced Local service and HomeTone(SM), will enable cable operators, ISPs, enhanced service providers, IXCs and others to offer IP-based local and long-distance voice service to consumers via any broadband connection to the home. Level 3 formally unveiled the services at the Spring 2004 VON Conference & Expo.
The U.S. consumer voice market, which is valued at over $65 billion per year, is on the verge of fundamental change, said Sureel Choksi, president of Softswitch Services for Level 3. The growth of residential broadband access, coupled with the increasing adoption of VoIP technology, is allowing a wide variety of companies to pursue the consumer voice market. We believe Level 3, with its extensive softswitch platform and local network infrastructure, is in a strong position to capitalize on this trend via these new complementary offerings.
Our new residential VoIP offerings are designed to enable new entrants and established broadband and communications companies to cost-effectively accelerate their deployment of carrier-quality VoIP services to millions of U.S. households, said Choksi.
(3)VoIP Enhanced Local service essentially provides building blocks for do-it-yourself companies that want to manage their own residential telephone service. HomeTone is a complete turnkey solution for companies that prefer the ease and convenience that a plug-and-play service provides. HomeTone also gives providers of consumer VoIP services the ability to offer their own innovative and customized value-added features and applications to meet the specialized requirements of their end customers.
(3)VoIP Enhanced Local Service
(3)VoIP Enhanced Local Service, which Level 3 expects to begin offering during the second quarter of 2004, is ideally suited for cable operators, enhanced service providers, IXCs and others who are seeking to offer residential voice services but prefer to operate their own switching infrastructure.
(3)VoIP Enhanced Local service allows companies to develop voice services using Level 3 provided building blocks, including local phone numbers, interconnection with the traditional telephone network for local and long distance services, local number portability and E911 emergency services. The service provides these essential components while enabling the voice service provider to retain the flexibility to manage and control the features offered to the residential market.
(3)VoIP Enhanced Local Service provides customers operating their own switching infrastructure the ability to deploy consumer VoIP services cost effectively with maximum control over the end-user experience and minimal involvement in complex interconnection issues, said Jack Waters, CTO and president of Voice Technologies for Level 3. Customers are able to accelerate their time to market by leveraging Level 3's CLEC status in 48 states, local calling capability covering more than 93 percent of the U.S. population, and long-distance calling service worldwide.
We're encouraged by the level of interest we're seeing from cable operators, IXCs, and enhanced service providers, said Waters. Level 3's IP backbone and softswitch platform allow us to offer superior cost and performance advantages with high quality of service.
Key Features of (3)VoIP Enhanced Local Service
* Local and long distance calling including access to the traditional
telephone network
* Local phone numbers
* Operator assistance
* Directory listings and assistance
* E911 emergency services
* Local number portability

HomeTone



HomeTone, which Level 3 expects to begin offering during the second quarter of 2004, is a turnkey, hosted VoIP alternative to traditional residential local and long distance phone service. It offers the benefits and functionality of (3)VoIP Enhanced Local service, plus calling features such as voice mail, call waiting, and three-way conferencing. In addition, HomeTone includes advanced calling features such as unified messaging, and a personal locator function that forwards the call until it reaches the designated party.
HomeTone service gives channel partners, such as ISPs, cable operators, ILECs and enhanced service providers the ability offer a cost-effective, high-quality local and long distance telephone service to consumers with minimal upfront costs and accelerated time to market. Channel partners can develop unique calling features and functionality with HomeTone to differentiate their voice offerings to consumers.
Key Features of HomeTone
All of the (3)VoIP Enhanced Local service features noted above, plus many others including:
* Voice mail
* Call waiting
* Three-way conferencing
* Caller ID
* Call forwarding
* Enhanced features including unified messaging and personal locator
* End-user, Web-based account management


In addition to residential VoIP services, Level 3 offers a full range of wholesale and business voice services. For more information about Level 3's portfolio of VoIP services, please stop by VON booth #615, or visit http://www.level3.com/ .
About Level 3 Communications
Level 3 is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL partners. The company offers a wide range of communications services over its 22,500 mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, and patented Softswitch managed modem and voice services. Its Web address is http://www.level3.com/.
The company offers information services through its subsidiaries, Software Spectrum and (i)Structure. For additional information, visit their respective Web sites at http://www.softwarespectrum.com/ and http://www.i-structure.com/.
The Level 3 logo and (3)Voice are registered service marks and (3)VoIP Enhanced and HomeTone are service marks of Level 3 Communications, Inc. in the United States and/or other countries.
Forward Looking Statement
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: changes in the overall economy relating to, among other things, the September 11 attacks and subsequent events, substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; 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.


Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990721/LVLTLOGOPRN Photo Desk, 888-776-6555 or 201-369-3467


Level 3 Communications, Inc.


CONTACT: Media, Josh Howell, +1-720-888-2517, or Paul Lonnegren,+1-720-888-6099, or Investors, Robin Grey, +1-720-888-2518, or SandraCurlander, +1-720-888-2501, all of Level 3 Communications, Inc.


Web site: http://www.level3.com/

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