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
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
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; >$1Billion in cash
Included in Fortune 500 and NASDAQ 100 Index
Solutions
IP, data, transport, video and voice
Network
End-to-end, fiber-based network
*Estimated revenues for 2007 based on guidance provided on 2/8/07
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Unique Capabilities to Support Enterprise Customers
Reliable
Stable Leadership and FinancialsFinancial strength and rapid revenue growth
Expansive Fiber-Based FootprintFiber-based network
Broad end-to-end reach
Proven Network Services LeaderDemonstrated capabilities in high bandwidth services
Best-in-class IP performance
Responsive
Focused on Customer SegmentsBusiness Markets GroupLocal market teams
Helping Customers Migrate to New Enterprise TechnologiesLeadership in Ethernet, VPN, VoIP and High-Speed services
Continued InvestmentFiber builds to key locationsValue-adding acquisitions
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Reliable: Stable Leadership and Financials
“The Level 3 management team remains intact and without controversy. Founding CEO Jim Crowe is a straightforward industry veteran with a wealth of significant telco management experience….”- The Yankee Group
“We give management high marks for execution, and believe that the potential leverage to LVLT’s operating model is likely to be very substantial going forward.” - Needham & Company
Revenue ($ millions)
EBITDA($ millions)
Source: 2007 revenue & EBITDA estimates represent mid-points of external guidance provided 2/8/07
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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
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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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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
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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
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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
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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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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