Level 3 Communications, Inc. (NASDAQ: LVLT) has signed an agreement with the Social Security Administration (SSA) to provide wavelength services under the Networx Enterprise contract program.

Under the terms of the agreement, Level 3 will provide the SSA with multiple 10 Gigabit per second (Gbps) wavelength solutions to connect several of the SSA’s data center locations with the potential to expand to additional sites in the future. Level 3’s solution is designed not only to be a cost-effective offering, but to also meet SSA’s stringent network performance, scale, capacity and usability requirements.

“Level 3 is optimally positioned to offer government agencies critical communication services, given the high availability of our geographically diverse optical network paths and our custom-build network solutions,” said Edward Morche, senior vice president of Level 3’s Federal Markets. “This award from the SSA clearly demonstrates our ability to provide high-quality services that meet the government’s growing need for reliable connectivity and security.”

With approximately 54,000 long-haul fiber route miles and 27,000 metro fiber miles spanning 190 markets in 22 countries, Level 3 offers a broad portfolio of telecommunications services, including voice over internet protocol (VoIP), enterprise wide area network (WAN), metro and long-haul transport, data, collocation, and content delivery.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) today announced the availability of direct connectivity into global financial markets technology company BATS Europe, operator of a European Multilateral Trading Facility (MTF). This will give Level 3’s European financial services customers access to Level 3’s international Tier 1 backbone and low-latency trading execution from Europe to North America.

The new offering includes options for metro and inter-city connectivity as well as direct connection to Level 3’s low-latency, trans-Atlantic routes with diverse landing stations to better facilitate security and business continuity.

BATS Europe, launched on the 31 October 2008, is one of the leading pan-European markets, with market share of 8-10 percent in the FTSE 100, 7 percent of the SMI and 5-6 percent across the 15 European markets in which it operates.

“The tremendous growth of BATS Europe is a result of our forward-thinking approach to technology and understanding of the importance of fast, reliable global connectivity,” said Paul O’Donnell, chief operating officer at BATS Europe. “We’re committed to providing communications access solutions to market participants that meet the rigorous demands of the financial trading industry. We’re pleased to include Level 3 among the providers from which our participants may choose to connect to BATS Europe.”

Level 3 offers a number of customizable solutions for the financial industry, as well as low-latency network services to select trading venues throughout Europe and North America, including 15 financial exchanges, 14 electronic communications networks and seven market data centers.

With approximately 54,000 long-haul fibre miles and 27,000 metro fibre miles spanning 190 markets in 22 countries, Level 3 operates one of the most extensive and diverse network footprints in the market. As a result, Level 3 offers multiple low-latency options on a number of routes.

“At Level 3, we understand that when it comes to financial transactions, fractions of a second matter, and we’ve designed our services for this industry to meet the needs of the most sophisticated and demanding of customers,” said James Heard, president of European Markets at Level 3. “BATS Europe’s participants will now have access to solutions that nine of the top ten commercial banks rely on every day, including low-latency trading, highly scalable high-speed connections and secure transport of financial data that complies with major industry standards.”

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) today issued a statement in response to the Verizon-Google Legislative Framework Proposal. The following statement can be attributed to John M. Ryan, assistant chief legal officer and head of Regulatory Affairs for Level 3 Communications:

“We are encouraged that two companies with diverse business interests in the broadband Internet have been able to come to agreement on an issue as controversial as network neutrality. Like both companies, Level 3 believes that the government has a role to play in assuring an open, dynamic, improving and ubiquitous broadband Internet for U.S. citizens. We share their view that government must preserve innovation, advance policies that encourage accelerated investment in broadband infrastructure, and protect competition within all portions of the Internet market.

’”While there is much to praise in the Verizon-Google statement, there are also areas that require more attention. Allowing last-mile access network owners to create a “paid priority” data service raises a number of concerns, especially since most consumers have a choice of only two wired broadband Internet suppliers, and since contention for limited capacity seems inevitable because consumers’ demand for broadband is greater than the existing networks’ capacity.

”While we have concerns about some aspects of the proposal, we are encouraged by the progress made by Verizon and Google, and look forward to working with the industry and with the government to advance policies that encourage innovation, investment and competition within the broadband Internet market.”

Get the latest Telecom News at http://vartips.com

Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, and Level 3 Communications, Inc. (NASDAQ: LVLT)  announced the opening of a new access node in Equinix’s International Business Exchange™ (IBX®) London 4/London5 (LD4/5) data center campus located on the outskirts of London. The access node will link the Equinix LD4/5 IBX campus directly with three of Level 3’s transatlantic routes to New York, improving diversity and lowering the latency on the route between the UK and North America.

Level 3’s new access node will offer customers in the Equinix LD4/5 campus direct connectivity to three transatlantic routes; Yellow, AC-1 and Apollo North, as well as provide access to its extensive North American footprint via the Level 3 facilities in New York. In addition, alongside the community of networks, content and digital media companies, enterprises and financial service providers already operating within Equinix’s LD4/5 campus, Level 3’s customers will benefit from a new route that bypasses central London. By locating the access node on the outskirts of London, Level 3 has improved the resilience and speed of connection between London and the U.S.

“We live in an increasingly connected world where the speed and reliability with which information travels – particularly for financial firms – is critical to successful business operations,” said James Heard, president of European Markets at Level 3. “Our collaboration with Equinix is the latest example of Level 3’s commitment to expanding its low-latency offerings across the Atlantic, enabling more options for transatlantic connectivity independent of central London, and providing top-quality solutions for the most demanding of international enterprise customers.”

Level 3 currently serves 20 European countries and operates an extensive and diverse network footprint across North America and Europe. The new direct transatlantic routes and on-net connectivity will also provide customers in Equinix’s LD4/5 campus greater flexibility to scale bandwidth directly connected to the Level 3 transatlantic network as their demand increases.

“Equinix provides state-of-the-art colocation, interconnection and exchange services that securely connect the world’s networks, enterprises, cloud providers and financial institutions,” said Russell Poole, General Manager, Equinix UK. “The availability of Level 3’s new service at our LD4/5 IBX campus is a valuable addition to our offering and presents an attractive value proposition for customers operating within our ecosystems.”

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ:  LVLT) today announced it has upgraded its ultra-low-latency fiber-optic network connection from London to Frankfurt. The upgrade significantly improves latency on this route as well as the Frankfurt-to-New York and Frankfurt-to-Chicago routes, enabling higher-speed transaction rates with very low transmission delays for financial exchanges and other trading venues.

“Latency remains a highly-sensitive issue in the financial industry, and Level 3′s improvement of its Frankfurt to London ultra-low-latency route (and the subsequent benefit to its other routes as a result) positions the company well in this area, particularly among international enterprise and financial service providers,” said Roopashree Honnachari, senior industry analyst with Frost & Sullivan. “Combined with the company’s latency guarantees and network scalability, this offering could be a real competitive differentiator for Level 3.”

If you are interested in this route, please contact 10gea.org

Effective today, Level 3 will offer customers two grades of performance for ultra-low-latency routes, with access to circuit speeds of up to 10 Gigabits per second.

These two grades, Premier and Advanced, will allow customers to choose between two latency route speeds based on their specific requirements. Premier customers will have access to the faster ultra-low-latency route. Both of these levels are then backed by Level 3′s latency service level agreement (SLA).

“Similar to our ultra-low-latency route from New York to Chicago, this upgrade demonstrates Level 3′s commitment to supporting our financial services customers, especially as ultra-low-latency and transaction cycle times are critical to this sector,” said James Heard, president of European Markets at Level 3. “It also reinforces our commitment to continually enhance our ultra-low-latency service offering which, when combined with our network scale and reliability, deepens our commitment to the financial services community.”

The Level 3 network today spans 22 countries, with services offered in approximately 190 markets in Europe and North America. The company operates approximately 54,000 long-haul fiber miles and 27,000 metro fiber miles, making it one of the most extensive and diverse network footprints in the market.

Leveraging this footprint, Level 3 offers multiple low-latency options for any given route and a direct connection to low latency, trans-Atlantic routes with diverse landing stations to better enable network security and business continuity.

To learn more about Level 3′s European capabilities, please click here.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) today announced that it has been selected again by VERSUS, the exclusive television home of the Tour de France in the U.S., to be the online and mobile content delivery provider for the 2010 edition of the race. This year marks the second consecutive year that Level 3 will partner with VERSUS to stream live Tour de France content to online audiences via the Tour Tracker on www.VERSUS.com and the first year the content is available via iPhone.

The Tour de France begins on Saturday, July 3, and live streaming content will be available to U.S. and Canadian viewers in high-definition (HD) for live and on-demand online and iPhone viewing on a subscription basis.

Throughout all 21 phases of the three-week race, Level 3 will downlink the live Tour de France signal to one of its teleports in the U.S. Level 3 will then immediately backhaul that signal to several drop points around the country where it will be simultaneously encoded into multiple streaming delivery formats. Once encoded, the live streams will be pushed to the Level 3 CDN for delivery in real-time to cycling fans in the U.S. and Canada who subscribe to the Tour Tracker on www.VERSUS.com.

With the Tour Tracker race fans will see live, commercial-free HD video of the race as well as real-time GPS tracking of the peloton and break-aways during each stage of the race. Subscribers will also have access to daily updates with standings for each classification and complete, uncut stage videos and photos from each stage.

“At Level 3, we understand that successful online event delivery is about far more than carrying a video feed to a website, and our continued relationship with VERSUS is a direct result of that understanding,” said Peter Neill, senior vice president of Content Markets at Level 3. “We provide end-to-end delivery solutions that manage the signal from creation to consumption, which allows us to optimize the process every step of the way and provide a seamless experience for both the broadcaster and the end-user.”

By providing services specifically designed to manage the process of live event delivery effectively, Level 3 makes it easier for broadcasters and other content providers to share event content via the Web or connected devices with new audiences. For more information on Level 3’s media delivery services, visit www.Level3delivers.com.

Get the latest Telecom News at http://vartips.com

First Quarter Financial Highlights

• Continued sequential improvement in sales and churn
• Consolidated Revenue of $910 million
• Consolidated Adjusted EBITDA of $200 million

Level 3 Communications, Inc. (NASDAQ: LVLT) reported consolidated revenue of $910 million for the first quarter 2010, compared to consolidated revenue of $924 million for the fourth quarter 2009 and $980 million for the first quarter 2009.

The net loss for the first quarter 2010 was $238 million, or $0.14 per share. Excluding a loss of $54 million, or $0.03 per share on the extinguishment of debt, the net loss was $184 million, or $0.11 per share. The net loss for the fourth quarter 2009 was $182 million, or $0.11 per share, and $132 million or $0.08 per share for the first quarter 2009.

Consolidated Adjusted EBITDA was $200 million in the first quarter 2010, compared to $217 million in the fourth quarter 2009 and $250 million in the first quarter 2009.

“We are encouraged by the positive improvement we’ve seen this year for both sales and churn” said James Crowe, CEO of Level 3. “Ongoing broadband demand is providing sales opportunities across the company.  And our continued improvements in customer experience are paying off, contributing to a decline in disconnects.  We remain focused on execution, and will continue our disciplined approach to increasing our investments to take advantage of these market opportunities.”

Financial Results

1. See schedule of non-GAAP metrics for definition and reconciliation to GAAP measures.

Communications Business

Revenue

Total Communications Revenue for the first quarter 2010 was $900 million, compared to $906 million for the fourth quarter 2009. Total Communications Revenue for the first quarter 2009 was $962 million.

Core Network Services

Core Network Services revenue was $701 million in the first quarter 2010, a decline of approximately 1 percent compared to $706 million in the fourth quarter 2009.

“We were particularly encouraged by the growth in Large Enterprise and Federal revenues,” said Sunit Patel, executive vice president and CFO of Level 3.  “Mid-market revenues, which have been declining since 2007, are now stabilizing.

“We were pleased to see a return to sequential revenue growth on a constant currency basis for our European business. While European revenues declined on an as-reported basis, assuming constant currency, European revenues increased 3 percent.

“Our Wholesale revenues declined this quarter due to expected seasonality in the Vyvx broadcast business and a decline in inter-carrier compensation, partially offset by an asset sale of approximately $7 million.

“On a normalized basis, accounting for seasonality, inter-carrier compensation, the effects of foreign exchange, and the asset sale during the quarter, our Core Network Services revenue was down slightly, which represents a much improved performance from a year ago.”

Deferred Revenue

The communications deferred revenue balance was $880 million at the end of the first quarter 2010, compared to $902 million at the end of the fourth quarter 2009 and $868 million at the end of the first quarter 2009.

Cost of Revenue

Communications cost of revenue increased to $371 million in the first quarter 2010, from $361 million in the fourth quarter 2009, largely due to favorable vendor discounts and settlements in the fourth quarter 2009 and the revenue mix shift in the current quarter.  Communications cost of revenue was $390 million in the first quarter 2009.

Communications gross margin was 58.8 percent for the first quarter 2010, compared to 60.2 percent in the fourth quarter 2009. Communications gross margin was 59.5 percent in the first quarter 2009.

Selling, General and Administrative Expenses (SG&A)

Excluding non-cash compensation expense, Communications SG&A was $327 million in the first quarter 2010, compared to $328 million in the fourth quarter 2009 and $322 million in the first quarter 2009.

Communications SG&A expenses, including non-cash compensation expense declined to $343 million for the first quarter 2010, from $352 million for the fourth quarter 2009. SG&A expenses were $338 million for the first quarter 2009.  Non-cash compensation expense was $16 million, $24 million, and $16 million for the first quarter 2010, fourth quarter 2009, and first quarter 2009, respectively.

Adjusted EBITDA

Communications Adjusted EBITDA was $202 million for the first quarter 2010, compared to $216 million for the fourth quarter 2009.  First quarter 2009 Communications Adjusted EBITDA was $249 million.

Communications Adjusted EBITDA margin was 22.4 percent for the first quarter 2010, compared to 23.8 percent for the fourth quarter 2009 and 25.9 percent in the first quarter 2009.

Communications Adjusted EBITDA excludes non-cash compensation expense and includes restructuring charges. For the first quarter 2010, the company incurred less than $1 million of restructuring charges. For the fourth quarter and first quarter 2009, restructuring charges were $1 million.

Consolidated Cash Flow and Liquidity

During the first quarter 2010, Unlevered Cash Flow was $51 million, versus $218 million in the fourth quarter 2009, and $43 million for the first quarter 2009.

Consolidated Free Cash Flow was negative $90 million for the first quarter 2010, or $63 million, excluding approximately $27 million related to a settlement and other payments for previously discontinued operations not associated with the Communications business.

During the quarter, the company repaid, at maturity, the remaining $111 million aggregate principal amount of its 6% Convertible Subordinated Notes due 2010 and repurchased approximately $8 million of debt due in 2010 and 2011.

As previously disclosed, Level 3 Financing, Inc. issued $640 million aggregate principal amount of its 10% Senior Notes due 2018, and retired its 12.25% Senior Notes due 2013 during the first quarter 2010. As a result, the company recorded a $54 million loss on the extinguishment of debt during the first quarter 2010.

On April 27, 2010, the company issued a notice to redeem the remaining $172 million aggregate principal amount of its 10% Convertible Senior Notes due 2011.  These notes will be redeemed effective May 27, 2010.  As a result, the company expects to recognize a $4 million loss on extinguishment of debt in the second quarter 2010.

The company continues to expect Net Cash Interest Expense of approximately $525 million and GAAP Cash Interest Expense of $585 million for the full year 2010.

As of March 31, 2010, the company had cash and cash equivalents of approximately $639 million.

Business Outlook

“We saw several positive signs in the overall health of our business this quarter,” said Patel.  “Our Core Network Services sales orders were up by more than 15 percent in the first quarter compared to the fourth quarter. We believe that churn will continue to show improvement for the rest of the year.  Backing out the $7 million asset sale in the first quarter, we expect Core Network Services revenue to grow sequentially for the rest of 2010.

“With the exception of typical utility cost fluctuations, we expect SG&A to remain relatively flat for the remainder of the year.  Based on the opportunities we see now to profitably grow our revenues, as we mentioned last quarter, we are expecting capital expenditures to increase in 2010 compared to 2009.  Given that, we expect to be Free Cash Flow negative for the full year 2010.  Consistent with prior years, we expect Free Cash Flow performance to improve for the remainder of the year.

Summary

“We are beginning to see both the benefit of improvements we have made in our customer experience over the last couple of years and the recovering economy,” said Crowe. “Our sales and churn are improving and we expect to translate that into improving revenue growth.”

Conference Call and Web Site Information

Level 3 will hold a conference call to discuss its first quarter 2010 results today at 11:00 a.m. EDT. You may access the call at 888-211-7449 or 913-312-0677 passcode 8481809. The call also will be broadcast live on Level 3′s Web site at http://lvlt.client.shareholder.com/.

During the call, the company will review an earnings presentation that summarizes the results of the quarter. The company has also provided a supplemental schedule with historical financial results. The presentation and supplemental schedule may be accessed at http://lvlt.client.shareholder.com/results.cfm.

The call will be archived and available live on Level 3′s Web site at http://lvlt.client.shareholder.com/ or you may access an audio replay until 12 a.m. EDT on Saturday, May 15, by dialing 888-203-1112 or 719-457-0820, access code 8481809.

For additional information please call 720-888-2502.

About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit www.Level3.com.

Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements 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. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the current uncertainty in the global financial markets and the global economy; disruptions in the financial markets that could affect Level 3′s ability to obtain additional financing; as well as the company’s ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; attract and retain qualified management and other personnel; and meet all of the terms and conditions of 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.

Non-GAAP Metrics

Pursuant to Regulation G, the company is hereby providing a reconciliation of non-GAAP financial metrics to the most directly comparable GAAP measure.

The following describes and reconciles those financial measures as reported under accounting principles generally accepted in the United States (GAAP) with those financial measures as adjusted by the items detailed below and presented in the accompanying news release. These calculations are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP. In keeping with its historical financial reporting practices, the company believes that the supplemental presentation of these calculations provides meaningful non-GAAP financial measures to help investors understand and compare business trends among different reporting periods on a consistent basis, independently of regularly reported non-cash charges and infrequent or unusual events.

Consolidated Revenue is defined as total revenue from the Consolidated Statements of Operations.

Communications Revenue is defined as communications revenue from the Consolidated Statements

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) today announced that it has been selected to deliver voice services to VIP Communications, which provides prepaid long-distance service in the U.S. and more than 30 countries worldwide.

Under the contract, Level 3 will provide international voice termination (IVT) services to VIP. Level 3′s IVT service is designed to deliver a high-quality, cost-effective solution for service providers with significant voice traffic by delivering real-time reporting and routing as well as real-time pricing.

“VIP is constantly on the lookout for cost-effective network solutions, and Level 3′s network provided the reach and efficiency we were looking for,” said Pete Rogers, senior vice president of Business Operations & Development for VIP Communications. “With our constantly growing call volume, we also needed a network that provides the flexibility to adapt to our changing business needs, and Level 3 delivered on that front as well.”

Ashburn, Va.-based VIP Communications Inc. provides long-distance and international calling services that enable customers to stay in touch with family and friends and business contacts, worldwide. VIP’s calling services are available from both land lines and cell phones at competitive rates.

“Delivering solutions that take advantage of the reach, flexibility and efficiency of our network represents the heart of Level 3′s value proposition,” said William Ganey, Level 3′s general manager for Washington, D.C. “And we pride ourselves on combining our extensive fiber footprint with a local customer support team to deliver an unmatched customer experience.”

Level 3′s Business Markets Group leverages the power of the company’s extensive fiber-optic network, metro assets, and locally focused sales and sales support organization to deliver world-class services to enterprise customers and service providers throughout the United States.

advertisment Wholesale SIP termination? SipTrunks.org

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ:LVLT) today announced that the company has received the ATLANTIC-ACM 2010 Global Wholesale Best in Class Award for Data Value. The award recognizes Level 3′s leadership in delivering data network services to meet the wholesale communications needs of global carriers. Level 3 was one of two companies to receive the award for data value in 2010.

“International wholesale carriers sent a strong message about the quality and value of the Level 3 data product portfolio,” said Fedor Smith, president of ATLANTIC-ACM. “Level 3 offers the services for carriers to efficiently and effectively extend their networks around the world.”

The award is based on the ATLANTIC-ACM 2010 Global Wholesale Report Card study, which compiles customer feedback via online surveys. Customers evaluate each carrier that they work with in a number of operational categories, and also rate voice and data products for both quality and price. The Data Value award is based on the combined average score for quality and price across all data products. Level 3 was recognized for a broad portfolio of data transit and transport services, including:

• IP Transit
• IP WAN
• High Capacity Transport
• Low Capacity Transport
• Ethernet Transport

“Level 3 delivers the right combination of network infrastructure and services to support the global communications needs of the wholesale market,” said Andrew Crouch, president of Wholesale Markets for Level 3. “The ATLANTIC-ACM Best in Class Award reinforces Level 3′s commitment to providing global carrier customers with the data network capabilities to meet the day-to-day demands of their wholesale business.”

ATLANTIC-ACM presented the Global Wholesale Best in Class awards on Jan. 20 at the Pacific Telecommunications Council conference in Honolulu, Hawaii.

About ATLANTIC-ACM
Boston-based ATLANTIC-ACM is a leading provider of strategic research and consulting services serving the telecommunications and information industries. In addition to producing the industry’s principal benchmarking, sizing and opportunity studies, the company assists clients in evaluating telecommunications opportunities for successful investment, market entry and long-term planning. For more information, visit ATLANTIC-ACM’s website at www.atlantic-acm.com.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) announced an agreement with the Philippine Long Distance Telephone Company (PLDT). Under the terms of the agreement, PLDT will use Level 3′s landing station connectivity at the Asia America Gateway (AAG) submarine cable system – a key communications link between the two continents. Level 3′s services provide a diverse and scalable extension of the PLDT pan-Asian network to carry voice, data and video traffic in the United States.

“As broadband and wireless communications continue to grow, PLDT faces increasing demands for network connectivity and performance,” said Genaro C. Sanchez, vice president of International Network Operations for PLDT. “Level 3 offers the global network connectivity and scalability to ensure that we continue to meet our goal of greater efficiency, cost savings and innovation – today and in the years to come.”

Cable landing station connectivity provides a critical component of the global network architecture for international carriers. The Level 3 network offers multiple options for cable landing station connectivity that enable cost-effective and reliable transmission of subsea cable traffic.

“In an increasingly connected world, Level 3 provides reliable network infrastructure and services for global carriers to extend their networks around the world,” said Andrew Crouch, president of Wholesale Markets for Level 3. “Level 3 is proud to support PLDT as they continue to transform their next generation network and set new standards for global communications.”

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (Nasdaq: LVLT) subsidiary, Level 3 Financing, Inc., has agreed to sell $640 million aggregate principal amount of 10% Senior Notes due 2018 in a private offering to “qualified institutional buyers,” as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933, as amended. The notes were priced to investors at 97.982% of their principal amount.

The net proceeds from the offering will be used to fund Level 3 Financing’s purchase of its 12.25% Senior Notes due 2013 in a concurrent tender offer and consent solicitation. The closing of the offering is conditioned upon the valid tendering, and acceptance by Level 3 Financing, of a minimum aggregate principal amount of notes in the tender offer and consent solicitation, receipt of a minimum amount of consents in the tender offer and consent solicitation and the satisfaction or waiver of the other conditions to the tender offer and consent solicitation (collectively, the “Closing Conditions”).
The offering is expected to be completed on Jan. 20, 2010, subject to the satisfaction or waiver of the Closing Conditions.

The senior notes will not be registered under the Securities Act of 1933, as amended, or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that its subsidiary, Level 3 Financing, Inc., plans to offer $640 million aggregate principal amount of senior notes that will mature in 2018 and will bear interest at a fixed rate in a proposed private offering to “qualified institutional buyers”, as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933, as amended.

The net proceeds from the offering will be used to fund Level 3 Financing’s purchase of its 12.25% Senior Notes due 2013 in a concurrent tender offer and consent solicitation. The closing of the offering is conditioned upon the valid tender of a minimum aggregate principal amount of notes and the receipt of a minimum amount of consents in the tender offer and consent solicitation.
The senior notes will not be registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that the following statement can be attributed to the company in connection with the proposed private offering by its subsidiary, Level 3 Financing, Inc., of senior notes to “qualified institutional buyers,” as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933, as amended.

“The company is confirming its previously issued expectation of Consolidated Adjusted EBITDA(1) of $900 million to $950 million for the full year 2009. The company also expects to be approximately Free Cash Flow neutral for 2009 in the aggregate. In addition, for the fourth quarter 2009, the company continues to expect improvement in the sequential performance of Core Network Services revenue. Consolidated Adjusted EBITDA is expected to increase in the fourth quarter compared to the company’s results in the third quarter.”

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (Nasdaq: LVLT) announced today that its subsidiary, Level 3 Financing, Inc., has commenced a tender offer to purchase for cash any and all of the $550 million in aggregate principal amount outstanding of its 12.25% Senior Notes due 2013 (the “Notes”).

In connection with the offer to purchase, Level 3 Financing is soliciting consents to certain proposed amendments to the indenture governing the Notes to eliminate substantially all of the covenants, certain repurchase rights and certain events of default and related provisions contained in the indenture.

Holders of Notes that are validly tendered prior to 5:00 p.m., New York City time on Jan. 19, 2010, unless extended or earlier terminated (the “Consent Time”), and accepted for purchase, will receive the total consideration of $1,080.00 per $1,000.00 principal amount of the Notes, which includes $1,050.00 as the tender offer consideration and $30.00 as a consent payment. The tender offer is scheduled to expire at midnight, New York City time, on February 2, 2010, unless extended or earlier terminated (the “Expiration Date”). Payment for Notes validly tendered on or prior to the Consent Time and accepted for purchase will be made promptly after the Consent Time. Holders of Notes that are validly tendered after the Consent Time and on or prior to the Expiration Date, and accepted for purchase, will receive the tender offer consideration but will not receive the consent payment. Payment for Notes validly tendered after the Consent Time and on or prior to the Expiration Date and accepted for purchase will be made promptly after the Expiration Date. Accrued interest up to, but not including, the applicable settlement date will be paid in cash on all validly tendered and accepted Notes.

Level 3 Financing intends to fund the purchase of the Notes tendered with net proceeds from a proposed private debt offering, and may also fund purchases pursuant to the tender offer with cash on hand. It is anticipated that any Notes that remain outstanding following the tender offer will be redeemed by the company on March 15, 2010, at a redemption price of $1,061.25, defeased or otherwise discharged.

It is a condition to the consummation of the tender offer that the holders of at least a majority of the outstanding aggregate principal amount of the Notes consent to the amendments to the indenture governing the Notes. Level 3 Financing’s obligation to purchase Notes pursuant to the tender offer is also conditioned on the issuance by Level 3 Financing of at least $640 million aggregate principal amount of senior notes in the proposed debt offering described above. The tender offer is also subject to the satisfaction or waiver of certain other conditions as set forth in the Offer to Purchase.

This announcement is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of an offer to sell securities with respect to the Notes. The tender offer may only be made pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal.

The complete terms and conditions of the tender offer are set forth in an Offer to Purchase that is being sent to holders of the Notes. Holders are urged to read the tender offer documents carefully. Copies of the Offer to Purchase and the related Letter of Transmittal may be obtained from the Information Agent for the tender offer, Global Bondholder Services Corporation, at (212) 430-3774 and (866) 389-1500 (toll-free).

BofA Merrill Lynch and Citi are the Dealer Managers for the tender offer. Questions regarding the tender offer may be directed to BofA Merrill Lynch, Liability Management Group at (888) 292-0070 (toll-free) and (646) 855-3401 or Citigroup Global Markets Inc. at (800) 558-3745 (toll-free) and (212) 723-6106.

Get the latest Telecom News at http://vartips.com

iTalk Global Communications, Inc. has selected Level 3 (NASDAQ: LVLT) for wholesale voice and local inbound service.

Under the contract, Level 3 will provide iTalk with wholesale voice and local inbound calling services. These services will enable iTalk to expand the area to which it delivers VoIP retail services to U.S. residential and small business customers and to U.S. and foreign telecom carriers and cellular operators.

“Coverage area and network reliability were key factors in our decision to do business with Level 3,” said Bill Burge, vice president at iTalk Global. “It’s important that we provide our customers with dependable services, and by working with Level 3, we can help ensure that consistent end-user experience.”

“Level 3′s far-reaching footprint allows companies like iTalk to expand quickly into new markets,” said Jeff Tench, president of Level 3′s Business Markets Group. “And because of that expansive network coupled with the efficiency of Level 3′s IP backbone, we’re able to provide highly cost-effective and scalable communications solutions.”

Level 3′s Business Markets Group leverages the power of the company’s extensive fiber-optic network, metro assets, and locally focused sales and sales support organization to deliver world-class services to enterprise customers and service providers throughout the United States.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) announced an expanded relationship with Clearwire Communications, LLC, an operating subsidiary of Clearwire Corporation, to support their CLEAR™ 4G WiMax services. Level 3 will provide Clearwire with network transport services as part of their deployment of CLEAR™ WiMax services in major metropolitan markets across the United States.

“With a nationwide network footprint, Level 3 offers the network reach and scale to meet our business needs as we rollout next generation broadband services,” said John Saw, chief technology officer for Clearwire. “As demand for the mobile Internet increases, we believe Level 3 offers the right combination of network infrastructure and service quality.”

Under the terms of the agreement, Level 3 will deliver high-speed Internet connectivity to major U.S. cities, including Chicago, Dallas, Philadelphia, Seattle, Washington DC, Houston and the Bay Area. Each 10 Gigabit Ethernet connection will carry data and Internet traffic for CLEAR™ customers.

“Level 3 delivers nationwide network connectivity to support Clearwire in delivering advanced network technology for mobile broadband,” said Andrew Crouch, president of Wholesale Markets for Level 3. “As greater wireless market penetration and usage places more mobile voice, data, video and Internet traffic on networks, Level 3 is well positioned to meet the capacity demands of our wireless customers and support their ongoing business growth.”

About Clearwire
Clearwire Communications, LLC, an operating subsidiary of Clearwire Corporation (NASDAQ: CLWR), offers a robust suite of advanced high-speed Internet services to consumers and businesses. As part of a multi-year network build-out plan, Clearwire’s 4G service, called CLEAR™, will be available in major metropolitan areas across the U.S., and bring together an unprecedented combination of speed and mobility. Clearwire’s open all-IP network, combined with significant spectrum holdings, provides unmatched network capacity to deliver next generation broadband access. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire currently provides 4G service, utilizing WiMAX technology, in 24 markets and provides pre-WiMAX communications services in 37 markets across the U.S. and Europe. Headquartered in Kirkland, Wash., additional information about Clearwire is available at www.clearwire.com.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) today announced that it is expanding its operations and enhancing its local presence in the Atlanta area. Through this initiative, Level 3 will combine its extensive backbone network, metro fiber-optic footprint, and a locally focused sales and customer support team to provide mid-market enterprises with greater access to Level 3′s full spectrum of communications services.

“We are building strong relationships with businesses throughout north Georgia because we couple our understanding of the ever-changing communications landscape with face-to-face local customer support,” said Allan English, Level 3′s Atlanta general manager. “We are seeing increased demand for a competitive alternative in the marketplace, and we’re taking our involvement in Atlanta to the next level to be that alternative for mid-market business customers.”

Level 3 has an extensive footprint throughout north Georgia that passes nearly 15,000 businesses. The company will add capacity to the network and will expand the number of businesses that are directly connected to this network, enabling significant scalability and reach of service for these businesses

As one of the company’s core locations, Level 3 is deeply rooted in the Atlanta area, employing more than 250 people. As part of this initiative, Level 3 is realigning its workforce in the Atlanta area to combine an on-the-ground presence with intimate marketplace knowledge to deliver an outstanding customer experience. The company also is redirecting support resources to focus specifically on mid-market enterprises throughout north Georgia.

Level 3′s local sales and customer support team will be on hand to provide expertise and guidance to Atlanta enterprise customers as they navigate the changing communications landscape. Businesses are experiencing fundamental changes in the way people use multimedia and collaborative applications on their desktop computers. As a result, IT organizations are centralizing the delivery of these applications – moving them from the desktop to the network – to increase reliability and better facilitate business continuity and disaster recovery. Both trends drive opportunities for Level 3 to provide a competitive alternative for Atlanta-area businesses and allow them to Link Globally and Connect Locally.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT)  is expanding its operations and customer support in the Miami area. Through this initiative, Level 3 is augmenting the resources it dedicates to delivering an exceptional experience for mid-market enterprise customers in south Florida.

“As with every market, Miami is unique and requires the first-hand knowledge my team and I have of the needs of the local business communities in the area,” said Fermin Morales, Level 3′s Miami general manager. “South Florida businesses are looking for a competitive alternative to the incumbent, and Level 3′s enhanced commitment to the area demonstrates that we are listening and providing that alternative.”

Level 3 has nearly 300 customers in the Miami area (which includes Ft. Lauderdale and West Palm Beach) and more than 800 metro fiber route miles throughout south Florida. Level 3 is adding capacity to this network and continues to increase the number of businesses that are directly connected to it, delivering the scalability and reach of services mid-market businesses seek from their communications provider. Furthermore, Level 3′s south Florida network connects to several landing stations for providers whose subsea cables link the United States to countries in Latin America.

In addition to enabling an increasing number of businesses to connect to the Level 3 network, Level 3′s local sales and customer support team will provide industry expertise to help business customers navigate the increasingly complex communications spectrum. Enterprises are witnessing fundamental changes in the way employees use multimedia and collaborative applications on their desktop computers; accordingly, IT organizations are centralizing the delivery of these applications – moving them from the desktop to the network – to increase reliability and better facilitate business continuity and disaster recovery. Both trends drive opportunities for Level 3 to provide a competitive alternative for south Florida businesses and allow them to Link Globally and Connect Locally.

As part of this increased local focus, Level 3 is realigning its workforce in the Miami area to create an enhanced service experience by leveraging local marketplace knowledge and creating greater familiarity with customers. The company also is redirecting support resources to focus specifically on the mid-market enterprise customer experience in south Florida.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ: LVLT) reported consolidated revenue of $916 million for the third quarter 2009, compared to consolidated revenue of $1.07 billion for the third quarter 2008 and $942 million for the second quarter 2009.

The net loss for the third quarter 2009 was $170 million, or ($0.10) per share, compared to a net loss of $129 million, or ($0.08) per share, for the third quarter 2008. The net loss for the second quarter 2009 was $134 million, or ($0.08) per share.

Consolidated Adjusted EBITDA was $213 million in the third quarter 2009, compared to $255 million in the third quarter 2008. Consolidated Adjusted EBITDA was $229 million in the second quarter 2009.

“While we remain cautious, we saw positive signs in the business this quarter, as evidenced by the improvement this quarter in the rate of decline in Core Network Services revenue,” said James Crowe, CEO of Level 3. “Our ongoing discipline in managing the business continues to provide benefit, and enabled us to generate positive Free Cash Flow during the quarter.”

Financial Results

1. See schedule of non-GAAP metrics for definition and reconciliation to GAAP measures.

Communications Business

Revenue
Total Communications Revenue for the third quarter 2009 was $901 million, versus $1.05 billion for the third quarter 2008. Total Communications Revenue for the second quarter 2009 was $926 million.

Core Communications Services
Core Communications Services revenue, which includes Core Network Services revenue and Wholesale Voice Services revenue, was $859 million in the third quarter 2009, an 11 percent decrease compared to Core Communications Services revenue of $964 million in the third quarter 2008.

Core Communications Services revenue by market group was:

Core Network Services revenue by market group was:

Deferred Revenue
The communications deferred revenue balance was $880 million at the end of the third quarter 2009, compared to $910 million at the end of the third quarter 2008 and $905 million at the end of the second quarter 2009.

Cost of Revenue
Communications cost of revenue for the third quarter 2009 decreased to $369 million, versus $425 million in the third quarter 2008. Communications cost of revenue was $379 million in the second quarter 2009.

Communications gross margin was 59.0 percent for the third quarter 2009, compared to 59.7 percent in the third quarter 2008. Communications gross margin was 59.1 percent in the second quarter 2009.

Selling, General and Administrative Expenses (SG&A)
Communications SG&A expenses, including non-cash compensation expense, decreased to $326 million for the third quarter 2009, compared to $388 million for the third quarter 2008. SG&A expenses were $320 million for the second quarter 2009. The increase in Communications SG&A from the second quarter 2009 to the third quarter 2009 is primarily a result of seasonally higher utility expenses.

Excluding non-cash compensation expense, Communications SG&A was $316 million in the third quarter 2009, a 15 percent improvement compared to $370 million in the third quarter 2008. Second quarter 2009 Communications SG&A, excluding non-cash compensation expense, was $311 million. Communications SG&A expense includes $10 million, $18 million, and $9 million of non-cash compensation expense for the third quarter 2009, third quarter 2008, and second quarter 2009, respectively.

Adjusted EBITDA
Communications Adjusted EBITDA was $215 million for the third quarter 2009, compared to $257 million for the third quarter 2008. Second quarter 2009 Communications Adjusted EBITDA was $230 million.

Communications Adjusted EBITDA margin was 23.9 percent for the third quarter 2009, versus 24.4 percent for the third quarter 2008. Communications Adjusted EBITDA margin was 24.8 percent in the second quarter 2009.

Communications Adjusted EBITDA excludes non-cash compensation expense and includes severance and restructuring charges. Severance and restructuring charges were $1 million for the third quarter 2009, $2 million for the third quarter 2008 and $6 million for the second quarter 2009.

Consolidated Cash Flow and Liquidity
During the third quarter 2009, Unlevered Cash Flow improved to $152 million, compared to $124 million for the third quarter 2008 and $146 million in the second quarter 2009.

Consolidated Free Cash Flow improved to $9 million for the third quarter 2009, compared to negative $4 million for the third quarter 2008. Consolidated Free Cash Flow was $20 million for the second quarter 2009.

During the third quarter 2009, the company repaid at maturity the remaining $55 million aggregate principal amount of its 6% Convertible Subordinated Notes due 2009 and repurchased approximately $39 million of debt due in 2010 and 2011.

The company received net proceeds of $274 million in October 2009 from the issuance of $275 million aggregate principal amount of its 7% Convertible Senior Notes due 2015, Series B.

Excluding capital leases and commercial mortgages, at the end of the third quarter 2009, the company had no remaining principal amount of debt due in 2009, $157 million in 2010, $433 million in 2011 and $301 million in 2012.

As of Sept. 30, 2009, the company had cash and cash equivalents of approximately $532 million, or $806 million pro forma for the $275 million 7% Convertible Senior Notes Due 2015.

Outlook
“During the quarter, the rate of decline in Core Network Services revenues improved, as we expected,” said Sunit Patel, executive vice president and CFO of Level 3. “We also saw improvements in churn and sales in several segments across the business. We are reiterating guidance for the full year 2009.”

“Specifically, we expect Consolidated Adjusted EBITDA of $900 million to $950 million for the full year 2009. We expect to be approximately Free Cash Flow neutral for 2009 in the aggregate. In addition, we continue to expect improvement in the sequential performance of Core Network Services revenue. Consolidated Adjusted EBITDA is expected to increase in the fourth quarter compared to our results this quarter.”

Summary
“Our strong focus on managing costs, combined with our targeted investments in areas of growth, including local market penetration, wireless tower connections, content delivery and rural broadband, provide the foundation for stronger performance when we emerge from the challenging economic environment,” said Crowe. “Given the consistency of our margin profile, our positive operating leverage will be evident when we return to a period of revenue growth.”

Conference Call and Web Site Information
Level 3 will hold a conference call to discuss the company’s third quarter results at 10:30 a.m. EDT today. To join the call, please dial 800-378-6902 or 913-981-5587 passcode 5958674. A live broadcast of the call can also be heard on Level 3′s Web site at www.level3.com. During the call, the company will review an earnings presentation that summarizes the financial results of the quarter. This presentation may be accessed at http://www.level3.com/investor_relations/index.html .

An audio replay of the call will be available until 11:59 p.m. EST on Thurs., Nov. 5, 2009, by dialing 888-203-1112 or 719-457-0820, access code 5958674. The archived webcast of the third quarter conference call together with the press release, financial statements, earnings presentation and non-GAAP reconciliations may also be accessed at http://www.level3.com/investor_relations/index.html. For additional information please call 720-888-2502.

About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit www.Level3.com.

Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.

Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements 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. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the current uncertainty in the global financial markets and the global economy; disruptions in the financial markets that could affect Level 3′s ability to obtain additional financing; as well as the company’s ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; attract and retain qualified management and other personnel; and meet all of the terms and conditions of 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.

Non-GAAP Metrics

Pursuant to Regulation G, the company is hereby providing a reconciliation of non-GAAP financial metrics to the most directly comparable GAAP measure.

The following describes and reconciles those financial measures as reported under accounting principles generally accepted in the United States (GAAP) with those financial measures as adjusted by the items detailed below and presented in the accompanying news release. These calculations are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP. In keeping with its historical financial reporting practices, the company believes that the supplemental presentation of these calculations provides meaningful non-GAAP financial measures to help investors understand and compare business trends among different reporting periods on a consistent basis, independently of regularly reported non-cash charges and infrequent or unusual events.

Consolidated Revenue is defined as total revenue from the Consolidated Statements of Operations.

Communications Revenue is defined as communications revenue from the Consolidated Statements of Operations.

Core Communications Services Revenue includes core network services revenue and wholesale voice services revenue.

Core Network Services Revenue includes revenue from transport and infrastructure, IP and data services, local and enterprise voice services and Level 3 Vyvx broadcast.

Communications Gross Margin ($) is defined as Communications Revenue less Communications Cost of Revenue from the Consolidated Statements of Operations.

Communications Gross Margin (%) is defined as Communications Gross Margin ($) divided by Communications Revenue. Management believes that gross margin is a relevant metric to provide to investors, as it is a metric that management uses to measure the margin available to the company after it pays third party network services costs; in essence, a measure of the efficiency of the company’s network.

Adjusted EBITDA is defined as net income (loss) from the Consolidated Statements of Operations before income taxes, total other income (expense), non-cash impairment charges, depreciation and amortization and non-cash stock compensation expense.

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue.

Management believes that Adjusted EBITDA and Adjusted EBITDA Margin are relevant and useful metrics to provide to investors, as they are an important part of the company’s internal reporting and are key measures used by Management to evaluate profitability and operating performance of the company and to make resource allocation decisions. Management believes such measures are especially important in a capital-intensive industry such as telecommunications. Management also uses Adjusted EBITDA and Adjusted EBITDA Margin to compare the company’s performance to that of its competitors and to eliminate certain non-cash and non-operating items in order to consistently measure from period to period its ability to fund capital expenditures, fund growth, service debt and determine bonuses. Adjusted EBITDA excludes non-cash impairment charges and non-cash stock compensation expense because of the non-cash nature of these items. Adjusted EBITDA also excludes interest income, interest expense and income taxes because these items are associated with the company’s capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of capital investments which management believes should be evaluated through consolidated free cash flow. Adjusted EBITDA excludes the gain on extinguishment of debt and other, net because these items are not related to the primary operations of the company.

There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from the company’s calculations. Additionally, this financial measure does not include certain significant items such as interest income, interest expense, income taxes, depreciation and amortization, non-cash impairment charges, non-cash stock compensation expense, the gain on extinguishment of debt and net other income (expense). Adjusted EBITDA and Adjusted EBITDA Margin should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

Unlevered Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures, plus cash interest paid and less interest income all as disclosed in the Consolidated Statements of Cash Flows or the Consolidated Statements of Operations. Management believes that Unlevered Cash Flow is a relevant metric to provide to investors, as it is an indicator of the operational strength and performance of the company and, measured over time, provides management and investors with a sense of the growth pattern of the business.

There are material limitations to using Unlevered Cash Flow to measure the company against some of its competitors as it excludes certain material items such as payments on and repurchases of long-term debt, interest income and cash interest expense. Level 3 does not currently pay a significant amount of income taxes due to net operating losses, and therefore, generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable and accounts payable and capital expenditures. Unlevered Cash Flow should not be used as a substitute for net change in cash and cash equivalents on the Consolidated Statements of Cash Flows.

Consolidated Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures as disclosed in the Consolidated Statements of Cash Flows. Management believes that Consolidated Free Cash Flow is a relevant metric to provide to investors, as it is an indicator of the company’s ability to generate cash to service its debt. Consolidated Free Cash Flow excludes cash used for acquisitions and principal repayments.

There are material limitations to using Consolidated Free Cash Flow to measure the company against some of its competitors as Level 3 does not currently pay a significant amount of income taxes due to net operating losses, and therefore, generates higher cash flow than a comparable business that does pay income taxes. Additionally, this financial measure is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable and accounts payable and capital expenditures. This financial measure should not be used as a substitute for net change in cash and cash equivalents on the Consolidated Statements of Cash Flows.

Projected Consolidated Adjusted EBITDA
The company has provided projections that include non-GAAP metrics that the company deems relevant to management and investors including a reconciliation of the non-GAAP financial metrics to GAAP that includes forward-looking statements with respect to the information identified as a projection. Level 3 has made a number of assumptions in preparing our projections, including assumptions as to the components of financial metrics. These assumptions, including dollar amounts of the various components that comprise a financial metric, may or may not prove to be correct. We caution you that these forward-looking statements are only projections, which are subject to risks and uncertainties including technological uncertainty, financial variations, changes in the regulatory environment, industry growth and trend predictions. Please see the company’s filings with the Securities and Exchange Commission, in particular the company’s 2008 Form 10-K, for a description of these risks and uncertainties.

In order to provide projections with respect to non-GAAP metrics, we are required to indicate a range for GAAP measures that are components of the reconciliation of the non-GAAP metric. The provision of these ranges is in no way meant to indicate that the company is explicitly or implicitly providing projections on those GAAP components of the reconciliation. In order to reconcile the non-GAAP financial metric to GAAP, the company has to use ranges for the GAAP components that arithmetically add up to the non-GAAP financial metric. While the company feels reasonably comfortable about the projections for its non-GAAP financial metrics, it fully expects that the ranges used for the GAAP components will vary from actual results. We will consider our projections of non-GAAP financial metrics to be accurate if the specific non-GAAP metric is met or exceeded, even if the GAAP components of the reconciliation are different from those provided in an earlier reconciliation.

Get the latest Telecom News at http://vartips.com

Level 3 Communications, Inc. (NASDAQ:  LVLT) today announced the launch of Level 3 Tower Access – a new service that offers direct wireless tower connectivity to the Level 3 network. Tower Access provides wireless carriers with more efficient and cost-effective options for wireless backhaul in metropolitan and rural locations. The first phase of this initiative will target unserved and underserved markets focusing on areas with the greatest concentration of end-user demand.

“Mobile data traffic will grow by an order of magnitude between 2009 and 2012,” said Jennifer Pigg, vice president of enabling technologies for Yankee Group. “Mobile operators are scrambling to meet this capacity demand cost effectively in their wireless backhaul networks. Direct wireless tower access to the Level 3 network offers a unique service for wireless carriers to optimize network performance and capacity.”

Level 3 Tower Access offers the capabilities to place wireless towers on or near existing Level 3 network facilities. Level 3 has identified more than 300 tower-ready network sites with the geography and right-of-way access to support the addition of wireless towers. Level 3 is working with multiple partners to erect wireless carrier-neutral towers directly on the Level 3 network in these locations.

Primarily located in rural areas, Level 3 Tower Access offers an alternative to incumbent providers, delivering a broad portfolio of voice, data and Internet services directly from the tower site. These services provide wireless carriers with more competitive options to backhaul wireless traffic and scale their network capabilities as mobile bandwidth and end-user demand continue to grow.

Level 3 Tower Access also offers shared infrastructure for wireless carriers to expand their wireless networks without the expense of costly fiber builds or dedicated tower access. Shared infrastructure creates an open platform for network connectivity that supports a broad range of technologies, regardless of the carrier or service.

“Level 3 has been a key enabler of the wireless ecosystem for over 10 years,” said Sureel Choksi, chief marketing officer for Level 3. “Level 3 Tower Access offers the next evolution of our services to support wireless carriers as they keep pace with the growing consumer appetite for mobile connectivity.”

Get the latest Telecom News at http://vartips.com