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Level 3 and tw telecom Enter Into Settlement-Free Peering Agreement

- Agreement based on balanced mileage principles addresses growing customer demand

Level3
December 03, 2012
7:00am

BROOMFIELD, Colo., -- December, 3, 2012 – Level 3 Communications, Inc. (NYSE: LVLT) and tw telecom inc. (NASDAQ: TWTC) today announced they have entered into a long-term settlement-free Internet traffic exchange agreement.

The settlement-free agreement, commonly referred to as a peering agreement in the Internet industry, allows the two Internet service provider networks to exchange data, enabling Internet customers on one network to send and receive Internet content with customers on the other network more efficiently and cost-effectively.

As the Internet continues to grow and evolve, Internet service providers must exchange Internet traffic in a scalable, resilient and reliable manner, allowing consumers to enjoy the highest performance and fastest speeds that enable new, innovative high-bandwidth applications.  Broadband consumers now download much more data than they send, requiring Internet carriers to dynamically adjust traffic routing and interconnection locations to maintain a fair and equitable relationship between the two networks.  

The Level 3 and tw telecom peering agreement measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network. This approach is called bit-mile peering. In order to keep the relationship equitable, both networks carry approximately the same “bit miles” of data. This model promotes efficient, high-quality service for customers, while ensuring a balanced cost burden across each network.

“Level 3’s primary focus is on providing quality service for Internet consumers,” said Jack Waters, Level 3’s chief technology officer. “We look forward to working with our peering partners to drive broader adoption of this bit-mile model to ensure fair and equitable interconnection. We are also working with providers of traffic-flow monitoring systems to make the measurement process straightforward and consistent across the industry.”
 
“tw telecom supports this settlement-free Internet peering approach based on bit-mile balance as a model that assures the most efficient interconnection in the evolving Internet,” said Harold Teets, tw telecom senior vice president of Network and Information Technologies. “This agreement will support high-quality service for our respective customers, and will keep the backbone cost burden balanced between our two networks.”

The Level 3 – tw telecom peering agreement also contains provisions to add capacity and establish new interconnection locations between the two networks to stay ahead of growing traffic demand. This approach offers flexibility to each network while improving performance and reliability for customers and is based on efficient interconnection principles for non-managed Internet traffic.  The agreement does not cover the exchange of managed voice traffic. 

Please see Level 3’s IP Traffic Exchange Policy for more information.

For more information on Level 3’s advanced network and service offerings, visit www.level3.com.

About Level 3 Communications
Level 3 Communications, Inc. (NYSE: LVLT) is a premier global provider of IP-based communications services to enterprise, content, government and wholesale customers. Over its reliable, scalable and secure network, Level 3 delivers integrated IP solutions, including converged, data, voice, video and managed solutions to help enable customers’ growth and efficiency. Level 3 operates a unique global services platform anchored by owned fiber networks on three continents in more than 45 countries, connected by extensive undersea facilities. For more information, visit www.level3.com.

© Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, Level (3), Think Ahead, the Level 3 Logo and the Level 3 Think Ahead logo are either registered service marks or service marks of Level 3 Communications, LLC and/or one of its Affiliates in the United States and/or other countries.  Any other service names, product names, company names or logos included herein are the trademarks or service marks of their respective owners. Level 3 services are provided by subsidiaries of Level 3 Communications, Inc.

About tw telecom
tw telecom, headquartered in Littleton, Colo., is a leading national provider of managed services, including Business Ethernet, converged and IP VPN solutions for enterprises throughout the U.S. and globally. tw telecom also delivers secure, scalable private connections for transport data networking, Internet access, voice, VPN, VoIP and security to large organizations and communications services companies. Employing a resilient fiber network infrastructure, robust product portfolio and its own Intelligent Network capabilities, tw telecom delivers customers overall economic value, an industry-leading quality service experience, and improved business productivity. Please visit www.twtelecom.com for more information.