Level 3 Accelerates VoIP Adoption Through Partnering Model
Level 3, Sylantro Systems and Bandwidth.com Deliver Nationwide VoIP Solution to CompUSA
SAN JOSE, Calif. (Spring VON, Booth 217) – March 15, 2006 – Level 3 Communications, Inc. (Nasdaq:LVLT) announced today that its partner programs have helped generate a significant increase in its VoIP subscriber growth.
Through its Level(3)EnabledSM Master Reseller Program and (3)VoIPSM Technology Alliance Program (“(3)VoIP TAP”), Level 3 collaborates with voice service providers (VSPs) and aggregators to build efficient and reliable VoIP services and joint go-to-market plans that facilitate the acceleration of VoIP end-user adoption. These programs have enabled participants in this program to significantly expand their indirect channel distribution efforts, resulting in approximately 100,000 new VoIP subscribers over the last 6 months.
Through its channel program, Level 3 is supporting CompUSA’s initiative to deliver the first nationwide, retail, Small to Medium Business (SMB) VoIP offering. Working with Bandwidth.com (a Level 3 Master Reseller) and Sylantro Systems (a (3)VoIP TAP partner), Level 3 helped coordinate a customized solution for CompUSA. By combining Level 3’s VoIP Enhanced Local service, with Sylantro’s Synergy VoIP platform and Bandwidth.com’s offering, CompUSA can quickly provide full feature VoIP business to support businesses with 10 to 200 lines across multiple locations including business features, Quality of Service and a full selection of business grade telephones.
“The Level 3 Master Reseller program has been important to our success in landing larger deals such as CompUSA,” said Henry Kaestner, chief executive officer of Bandwidth.com. “Level 3 helps us target opportunities by building joint marketing and sales strategies and customized solutions that help us quickly penetrate new markets. Level 3 also facilitates collaboration with key industry leaders such as Sylantro, which ultimately enabled us to jointly deliver the VoIP solution to CompUSA.”
“Level 3 is clearly the network leader in providing wholesale VoIP services” said Peter Bonee, chief executive officer of Sylantro Systems. “By participating in the Level 3 Technology Alliance Program, we have accelerated our interoperability testing and solidified our technical relationship with Level 3, improving our ability to deliver quality solutions in a timely manner to our customers. The relationship also brings us closer to key VoIP service providers like Bandwidth.com, providing invaluable exposure to new opportunities such as CompUSA.
Through its robust portfolio of VoIP solutions and channel program, Level 3 provides multiple options for service providers. Larger wholesale customers have direct access to Level 3’s VoIP solutions, while smaller service providers, resellers, value added resellers (VARs), agents, and other businesses can work directly with Level 3’s select group of Master Resellers and TAP partners to form their own distribution relationships.
“Working with the industry’s leading voice services platforms like Sylantro’s Synergy, as well as equipment and application providers, Level 3 is focused on creating customized solutions and enhanced VoIP applications that drive end-user adoption,” said Craig Schlagbaum, vice president of channel development for Level 3. “Our robust VoIP portfolio and commitment to enabling our customers’ success, allows Level 3 partners to accelerate large-scale deployments of VoIP services that provide businesses and residential customers with simplified and streamlined VoIP solutions.”
About Level 3 Communications
Level 3 (Nasdaq:LVLT) 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 23,000-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. Level 3 is an industry leader in IP and VoIP services, which it provides to cable operators, ISPs, carriers and others. Level 3’s E-911 service offering includes both fixed location and nomadic VoIP E-911 capabilities, supporting an FCC- compliant E-911 solution for interconnected VoIP providers. Its Web address is www.Level3.com.
The company offers information services through its subsidiary, Software Spectrum, and fiber- optic and satellite video delivery solutions through its subsidiary, Vyvx. Foradditional information, visit their respective Web sites at www.softwarespectrum.com and www.vyvx.com.
The Level 3 logo is a registered service mark and Level(3)Enabled is a service mark of Level 3 Communications, Inc. in the United States and/or other countries. (3)VoIP is a service mark of Level 3 Enhanced Services, LLC. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc.
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: increasing the volume of traffic on Level 3’s network; developing new products and services that meet customer demands and generate acceptable margins; successfully completing commercial testing of new technology and information systems to support new products and services, including voice transmission services; stabilizing or reducing the rate of price compression on certain of our communications services; integrating strategic acquisitions; attracting and retaining qualified management and other personnel; ability to meet all of the terms and conditions of our debt obligations; overcoming Software Spectrum’s reliance on financial incentives, volume discounts and marketing funds from software publishers; and reducing downward pressure of Software Spectrum’s margins as a result of the use of volume licensing and maintenance agreements. 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.
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