2007 level 3 communications, inc. all rights reserved. 1 business markets group: reliable and...

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2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME DATE

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Page 1: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.1

Business Markets Group: Reliable and Responsive

Prepared for CUSTOMER NAME

PRESENTER’S NAME

DATE

Page 2: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.2

Level 3 Provides a Winning Combination

Reliable: an established, end-to-end facilities-based network provider with full portfolio of network solutions

Responsive: a company organized around customer segments with dedicated sales and support resources and the commitment to invest in fiber-based customer solutions

Trust: a trusted partner to over 300 companies in the Fortune 500 for their most critical application needs

Page 3: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.3

Level 3 Profile

Customers

Serve the needs of the most demanding and bandwidth-intensive customers

Market Focus

Four business groups focused on Enterprise Business, Content, Wholesale and European customers

Experience

Established in 1998; consistent executive leadership

Stability

$4B* in revenue in 2007; >$1Billion in cash

Included in Fortune 500 and NASDAQ 100 Index

Solutions

IP, data, transport, video and voice

Network

End-to-end, fiber-based network

*Estimated revenues for 2007 based on guidance provided on 2/8/07

Page 4: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.4

Unique Capabilities to Support Enterprise Customers

Reliable

Stable Leadership and FinancialsFinancial strength and rapid revenue growth

Expansive Fiber-Based FootprintFiber-based network

Broad end-to-end reach

Proven Network Services LeaderDemonstrated capabilities in high bandwidth services

Best-in-class IP performance

Responsive

Focused on Customer SegmentsBusiness Markets GroupLocal market teams

Helping Customers Migrate to New Enterprise TechnologiesLeadership in Ethernet, VPN, VoIP and High-Speed services

Continued InvestmentFiber builds to key locationsValue-adding acquisitions

Page 5: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.5

Reliable: Stable Leadership and Financials

“The Level 3 management team remains intact and without controversy. Founding CEO Jim Crowe is a straightforward industry veteran with a wealth of significant telco management experience….”- The Yankee Group

“We give management high marks for execution, and believe that the potential leverage to LVLT’s operating model is likely to be very substantial going forward.” - Needham & Company

Revenue ($ millions)

EBITDA($ millions)

Source: 2007 revenue & EBITDA estimates represent mid-points of external guidance provided 2/8/07

Page 6: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

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More intercity routes improve performance ~47,000 intercity route miles in the US

and Europe Connects 16 countries Diverse routing options

Fiber-based metro access to your key locations 125 metro fiber markets ~25,000 metro fiber route miles ~6,500 on-net buildings > 100,000 enterprise buildings within

500 feet of the network Recently acquired AT&T’s divested

metro assets to >200 buildings and >1,600 metro fiber route miles

Single provider of reliable, end-to-end services

Reliable: Expansive Fiber-based FootprintEnables End-to-end Networking and Communications

Page 7: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.7

Leader in key network services and attributes

Metric Level 3 Market PositionCommercial wavelength sales #1Intercity backbone fiber route miles #2Competitive metro fiber markets #1Competitive fiber-served buildings #2Constructed colocation/technical space (sq. ft.) #1Top 5 IP network connectivity #2Content delivery network services market share #3Native video services market share #1

Best-in-class IP backbone performance (more than 1 terabit of customer traffic)

Reliable: Proven Network Services Leader

Source: http://www.fixedorbit.com/metrics.htm

Source: www.renesys.com

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2007 Level 3 Communications, Inc. All Rights Reserved.8

Division focused on enterprise customers Dedicated Sales, Customer Support, Product Delivery and Offer

Management ~25% of total Level 3 Revenue

Local market support Collaborative, in-market account service Deep understanding of regional customers and their businesses Application of best-practices to support common vertical solutions

Enterprise-dedicated customer service and support Teams focused on responsiveness to customers throughout the service

lifecycle

Responsive: Business Markets GroupFocused on the Needs of Enterprise Customers

Page 9: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.9

Responsive: Helping Customers MigrateLeadership in services that matter most to Enterprise

Deployment of Ethernet in the LAN, MAN and WAN

Migration from legacy technologies to IP and VPN services

Demand for reliable high-bandwidth solutions

Replace circuit-switched voice with VoIP

Leadership in Ethernet: Metro and Long-haul, SONET and Packet based, 3Megabit to 10Gigabit speeds, point-to-point and fully meshed

Unique VPN portfolio including IP VPN, Ethernet VPN (virtual EPL) and VPLS (fully-meshed layer 2)

Leadership in high-speed services, from Internet Access to Private Lines and Wavelengths

Complete range of VoIP solutions and industry leading softswitch coverage

Enterprise Challenges Unique Level 3 Strengths

Page 10: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

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Responsive: Leading Services PortfolioServices Designed to Meet Key Business Drivers

Data Services

Internet VPN Data Services

Transport Private LineWavelengths Ethernet

Metro and Intercity Transport

Infrastructure

Colocation, Space and Power

Switched and DedicatedTDM and IP-based

Long Distance Voice Services

Local Voice Services

Suite of TDM and IP-based VoiceVideo &ContentServices

Page 11: 2007 Level 3 Communications, Inc. All Rights Reserved. 1 Business Markets Group: Reliable and Responsive Prepared for CUSTOMER NAME PRESENTER’S NAME

2007 Level 3 Communications, Inc. All Rights Reserved.11

Challenge:

Only 13.4% of U.S. commercial buildings have fiber connectivity

Incumbents not investing to extend Enterprise fiber reach

Level 3 Response:

Commitment to extend fiber-based network to key customer locations Targeting addition of 1,000 buildings/year

Team focused on planning and managing metro network buildouts Metro Network Services Local Operations teams that have deep

knowledge of the local market and footprint

Strong financial and cash position to support builds

Responsive: Willing to Invest in YouFiber Builds to Serve Your Most Critical Business Sites

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2007 Level 3 Communications, Inc. All Rights Reserved.12

Trusted by the Most Demanding Businesses

Top 10 companies on the 2006 Fortune 1000

Over 300 companies on the Fortune 500

Four of the five largest research and education backbones in North America

Eight of the top 10 bank holding companies in the United States

20 of the top 25 U.S. hospital systems

Carries traffic for 22 of the top 25 doctoral and research universities in the United States