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 2001 Level 3 Communications, Inc. All Rights Reserved.

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1  2001 Level 3 Communications, Inc. All Rights Reserved.
Network Overview Copyright Level 3 Communications, Inc This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author. 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

2  2001 Level 3 Communications, Inc. All Rights Reserved.
Level 3’s Experience Over the last three years, Level 3’s engineering team recently oversaw the design and physical construction of a $10 billion global network from whiteboard to completion. This project was one of the largest construction projects in history when measured by dollars spent per month In addition to physical construction, Level 3 built a global operational organization numbering 4,500 people in eleven different countries Level 3’s management team has extensive network construction experience through MFS and Kiewit Level 3 built a Tier 1 IP backbone in less than 3 years Level 3 was the first to deploy an MPLS backbone Level 3 operates the largest SoftSwitch based network in the world. SoftSwitch based service include voice over IP (with PSTN quality) and managed modem services 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

3 ONTAPSM - World Class Provisioning Process
“We are big believers in ONTAP. Level 3 was able to turn up a national private-line backbone for Masergy in less than 10 business days. Such rapid provisioning has enabled Masergy to directly tie capital outlays to solid forecasts of demand and to offer better service to our own customers.” – Gerald Poe, Sr. Mgr. Infrastructure Engineering and Provisioning Masergy ONTAPSM = On-Net Transport Activation Process Capacity verification at order entry Acceleration of customer’s revenue recognition Clear commitment at the time of the order Reduced exposure to forecasting risk Vendor-neutral architecture Services that are ONTAP enabled mean faster provisioning time and quicker revenue. Time is money. Significant benefit to customers who now can drastically reduce their forecasting risk exposure. ONTAP activation for (3)Link Global Wavelength: 10 days for existing demarcs (with available capacity) ONTAP activation for (3)Link Private Line: 10 days for existing demarcs (with available capacity) Additional demarcation points in select cities where available ONTAP certified capacity has been physically audited and reviewed by field services to ensure the ports are empty and ready for use. This streamlines the process once the order is submitted to the gateway for installation. Sales person can confirm if capacity is available for the exact route requested before providing the customer signature report. Sales person can reserve the capacity which will consume all the necessary logical and physical ports in our provisioning system for 5-15 days to ensure rapid activation of 10 days SLA. NOTE: Customer Quote Winner of the 2002 Frost & Sullivan Customer Service Innovation Market Engineering Award. ONTAPSM 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

4 Complete Service Request Design, Assign, and Activate
ONTAP Process Order to Delivery Process Complete Service Request Design, Assign, and Activate Test and Turn Up Industry: 10 Days ONTAP : 0.5 Days Industry: 60 Days ONTAP : 1.0 Days Industry: 40 Days ONTAP : 3.5 Days Process Changes: Provisioning/billing info validated before sign off Reservation capabilities Credit approval prior to signoff Process Changes: Handoffs between organizations eliminated Real-time consumption management provided Remote activation of logical network elements Process Changes: Handoffs with Field Management eliminated Billing is automatically activated Customer Lead This slide shows the ONTAP process from order to delivery. The first step in the process, completing the service request, can be completed in .5 days, whereas the industry standard is about 10 days. One of the things during this phase is to make sure all of the appropriate order information is entered on the order before its accepted. By getting this types of information up front, we make sure that there won't be any snags late in the process. Furthermore, we make sure that we set expectations accordingly -- since we can't submit orders involving CPA termination without DLR information, sales will be less likely to say that it's "being worked on" if they still need information from the customer in the first place. The next step, Design, Assign, and Activate takes only 1 day with ONTAP. The industry standard for this step in the provisioning process is about 60 days! The longest step in this 3 step process is the actual test and turn up, and it only takes 3.5 days. As you can see, the entire ONTAP provisioning process is only 5 days. Five days is our internal SLA. We commit to the customer to having their circuits provisioned in 10 days or less. In a recent press release, a competitor claimed to have turned up a circuit in 27 days claiming that it was industry leading. Using ONTAP, Level 3 has actually provisioned an OC12 from Philadelphia to Washington in 17 hours! 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

5 Industry Leading Provisioning Time
Service Activation Cycle Time Performance Customer Sign Date to Bill Start Date Leading industry cycle times for OC-3 and above services, < 20 days for On-Net services Migration to Level 3 network enabled > 50% cycle time reduction in 2001 Cycle Time Cycle Time Another key metric in detail -> Industry leading cycle time (20 days for OC3 and above ONTAP + Non-ONTAP On-Net services Q4 average) Continuous process improvement trend (SPEAKER FYI: Cycle Time went up slightly but should not be a cause for concern based on CCD and CRD performance. In a CCD and CRD focused process, cycle time is not a concern as long as CCD and CRD performance is where it needs to be or is trending in the right direction. Examples of achievements: Calpoint project: 2 fiber nationwide intercity network, 2 fibers on 9 metro markets, 272 colocation sites - completed in 51 calendar days Customer( XO ) – we provision 80 10G waves in 65 working days. Customer( DT ) – 10 Gigs in 17 hours NEXT SLIDE: Latency – IP Performance 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

6 Meeting Customer Commitments
Service Activation Currently meeting 99% of Customer Commitment Dates (CCD) Customer Commitment Dates CCD performance reflects change in focus from construction to operation % CCD Met % CCD Met Let’s now talk about some of the results which are evidence of our continuous process improvement. Key metric detail: Meeting customer expectations with 95% met CCD. This is a very significant improvement during 2001 as you can see from the chart. (SPEAKER NOTE FYI: 95% met CCD - average of October, November and December. November CCD spiked a bit resulting from the system drop of cross connect functionality into ONTAP. We learned after the drop that the CCD setting process was not working as intended, causing us to miss CCDs. These missed CCDs were invisible to the customer. The trend is continuously improving NEXT SLIDE: Cycle Time 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

7 Operational Excellence
Level 3 is committed to excellent operational performance to enhance our customers’ experience and satisfaction Industry leader for core round-trip latency across the Network for IP services PERFORMANCE Consistently meet our guarantee of less than 1% packet loss performance for IP services Network availability guaranteed at 99.99% for terrestrial On-Net services Online visibility to network statistics, utilization, and traffic flow through the Online Customer Service Center (OCSC) Performance: Keynote Systems ranked Level 3 as the top network in terms of web site performance during the surge of internet traffic that followed the tragic events of September 11, Level 3 is consistently leading IP performance charts. IP Performance MARCH 2002: Latency (round trip): North America: 37.6 ms Europe Intl.: ms London to NY: ms Packet Loss: North America: % Europe Intl.: % London to NY: % Mean time to Repair: Our goal is to repair service in 2 hours or less (this varies by each situation and by product). Reliability: Network availability has steadily improved as migration to our own network continues. Call success rate is better than 90% for Managed Modem, industry leading number. RELIABILITY 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

8 Level 3 North America Network
16,000 U.S. route miles Upgradeable 12 conduit system Private Line Service available in 56 cities nationwide Substantially completed Fully owned, homogeneous No spurs or laterals 6.5 Million square feet of colocation facilities 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

9 Level 3 European Network
Cable completed in 4Q00 Initially operates 320 gigabits per second Upgradeable to 1.28 terabits per second Connects Level 3’s US and European networks Diverse capacity available 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

10 The Level 3 Conduit Advantage
The difference between our network and that of our competitors starts at the most base layer, what we call Layer 1 of the OSI model….the Physical Layer. Level 3 has deployed 8-12 conduits in our Intercity Network and anywhere from conduits in our Metro Networks. The deployment of a high conduit count network affords Level 3 the advantage few if any carriers can compete with, a continuously upgradeable network that allows us to carry more and more traffic while at the same time lowering costs through the use of “next generation” improvements in optical transport. These improvements include improvement not only in the optronics, but also in the fiber(s) involved. In order to truly optimize the network design, you must take into accounts all of its components and establish an optronics-fiber relationship that compliments each others capabilities. As the chart on the right side of the slide demonstrates, the introduction of next generation fibers (one every 18 months) over the past several years has reduced the cost of transporting a Gb. With new fibers, we are seeing such improvements as increased regenerator span distances which require less optronics for the transmission of signals and when you consider that the optronics comprise 95% of the CAPEX associated in optical transmission….it adds up. Improvements in the cost structure come as a result of reductions in cost(s) associated with the optics required to transmit the signals. This along with the maturation of DWDM technology enables us to deliver more bandwidth on fewer fibers at a lower cost. The number of conduits also allows us to take advantage of the costs savings associated with simply lighting another fiber (even if its not a next generation fiber) versus having to 1) lay more fiber or 2) deploy costly DWDM gear that will drive up the cost of the service. At some point it is more cost effective to light additional fibers. At some point it is more cost effective to use next generation fiber. Level 3 conduits support both options. 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

11 Lowering the Cost of Transport
Level 3 built its Network to be upgradeable, leveraging new generations of fiber and optronics in 12 parallel conduits Newest generations purchased in large scale = best unit cost SMF 10,000.00 N2DSF LEAF Level 3 Cost Curve Gen 4 1,000.00 Gen 5 Gen 6 Gen 7 100.00 Gen 8 Gen 9 Unit Cost 10.00 $ per Gbps mile 1.00 This slide shows how the concept of Moore’s Law (that for the same cost, computer chip complexity averaged over the past three decades doubled every 18 months) translates to fiber efficiency as well. With each new generation of fiber optic cable released, dispersion factors are reduced and signal loss through attenuation is mitigated. This means that light can travel further and further before it needs costly amplification and regeneration, improving the underlying cost efficiencies of the network. By building our 12 conduit system around the world, Level 3 is optimally positioned to take advantage of the cost benefits of introducing newer more efficient fibers into our network. With 10 spare conduits already in the ground, we will not have to build or dig to deploy newer, more efficient fiber technology into the network. We are the first telecommunications provider whose business plan adopted Moore’s Law right down to the level of the physical fiber core to our network. All cost efficiencies are translated into price benefits for our clients. And since the wavelength product is closest to the fiber layer of our network, these new fiber generations will have the greatest impact on the cost (and therefore the price) of the wavelength product. 0.50 0.01 1990 1995 2000 2005 2010 Source: Corning, Inc., Nortel Networks, Inc., Level 3 Engineering 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

12  2001 Level 3 Communications, Inc. All Rights Reserved.
The Level 3 Network Is Completely Route Diverse The Level 3 network does not have any spurs or laterals – it is completely route-diverse. It is important to be sure that the topology map a provider shows you is a true representation of their network. Network Spurs Sometimes carriers want you to see this. In reality, this is often what the network truly looks like. Richmond Richmond There is an average of 3.9 fiber cuts per 1000 miles of intercity/backbone network per year! When you are evaluating network providers, it is extremely important to make sure that the topology map they show you is a true representation of their network architecture. In today’s competitive market, customers will not tolerate outages. The Level 3 network was designed and built with complete route diversity, ensuring mission-critical service availability levels that we can stand behind based on this design. Many carriers do not have the luxury of a consistent and fully route-diverse network. This is because in the last six years many carriers grew by acquisition and tying together multiple legacy networks to form their “backbones.” POP POP Non-Diverse City Laterals/ Collapsed Rings 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

13  2001 Level 3 Communications, Inc. All Rights Reserved.
Metro Networks Broad geographic coverage 27 major North American markets 9 major European markets Deep metro presence at duct level 2,150 total local route miles 500+ On-Net buildings Up to 864 fibers per cable, per conduit Industry-leading Colocation facilities 70 Global “Carrier Grade” Colocation Data centers 6 million square feet of colocation space Level 3 provides a tremendous advantage to our customers with our metro networks. These networks are seamlessly integrated into our backbone intercity network and solely owned, maintained, and managed by Level 3. This provides a direct operational control and enables the highest levels of performance and network reliability. We understand that local connectivity still can and does present a last-mile roadblock for metropolitan and intercity transport services. Level 3 is a true end-to-end provider and in addition can provide you with metro interconnectivity to a host of local providers. Corning SMF 28 fiber is what we use in our metro networks. 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

14 Metro POP Route Diversity
Level 3 has complete diversity in our metro networks and facilities. As in the case of intercity networks some carriers lead you to believe that they have complete diversity. Carrier service Provision/ gateway facility Non Diverse Entrance Facilities What carriers want you to see What you should beware of There is an average of 13 fiber cuts per 100 route miles per year in metropolitan networks! Level 3’s metro networks provide the ultimate in private line service reliability. Our gateway facilities and networks are all built with complete route diversity. The ingress and egress points of our gateways are also diverse to provide you with mission-critical level security and reliability. 95% of all of our On-Net buildings/POPs have completely route diverse interconnectivity. (In some cases landlords, and facilities issues prevent redundant/diverse connectivity. On-Net building/ Customer location Non Diverse Risers in Gateways 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

15  2001 Level 3 Communications, Inc. All Rights Reserved.
The Level 3 IP Network We have over 16,000 miles in North America and almost 5,000 in Europe There is submarine capacity through the Atlantic ocean We offer robust metro networks, connecting network and traffic interconnection points. The fiber loops offer resiliency in the network. 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

16  2001 Level 3 Communications, Inc. All Rights Reserved.
IP Logical Diagram Level(3) Gateway Voice Quality VPN Over MPLS tunnels Voice Network Voice Managed Modem Internet Crossroads (Collocation) MOSS Core MPLS Network Level (3) Internet Network DIA (Metro TDM) EPOP (Metro Ethernet) Voice Internet Management VPN Over MPLS tunnels Peering (public Internet) Management/OSS Network MOSS Voice Internet VPN Internet MOSS 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

17 Industry-Leading Performance
Uniform Global Network Designed and built for performance from the ground up MPLS-enabled backbone Carries multiple protocol traffic Improves routing and QoS Peering > 600 peering sessions, 51+ Gb of Connectivity in North America 95% Private peering Consistently Ranked in Top 3 by Keynote Systems But our leading performance isn’t based on resiliency alone. Level 3 designed and built its entire network, end to end. We are not a patchwork of networks, unlike some other service providers. The oldest part of our network is only about 4 years old, meaning that we have some of the newest technologies available. This means that we will not have the quality degradation you might see with other networks, and that we can manage our network at a lower cost basis. MPLS is deployed through core network and is beginning to be deployed to the edge. Going forward, MPLS will enable provisioning of a broad range of data services. The fact that our peering is settlement-free means that we are truly a Tier One Provider in North America. Others say that they too are tier one, but we are recognized industry-wide and supported through 3rd parties, like Keynote Systems. Keynote is a third party “watchdog” for latency of Tier one Internet access providers. The unfortunate events of September 11 made it one of the busiest days in Internet traffic in history. Level 3 ranked number one in performance based on Keynote’s results. 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

18 (3) Packet Ethernet, Frame Relay and ATM over MPLS
Ethernet Switch ATM Switch Router Running Frame Relay VLAN VC DLCI Level 3 MPLS Backbone (LSR) Virtual Circuit A Virtual Circuit B Virtual Circuit C LER LER LER Shared netowrk allows for some oversubscription of routes based on utlitization and trafffic patterns Higher GM LER – Labeled Switched Router LSR – Labeled Switched Router 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

19 North America Peering Interconnection
Peering Capacity: 51+ Gb/s active 2.0 Gb/s 11.6 Gb/s 6.2 Gb/s 3.7 Gb/s 7.8 Gb/s 7.1 Gb/s 932 Mb/s 6.4 Gb/s 6.4 Gb/s 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

20 Level 3’s Academic and Research Community Focus
Dedicated team of sales, marketing, business development and engineering resources Efforts focused on national network initiatives, consortia and traffic aggregators, not on individual institutions Specific product programs for academic and research community How do we provide these building blocks? Highly Scalable: Global Internet backbone built on Level 3’s upgradeable infrastructure Industry - leading Performance: Significant interconnection to other major networks, Ease of connection - Widely accessible from numerous locations 0102  2001 Level 3 Communications, Inc. All Rights Reserved.

21  2001 Level 3 Communications, Inc. All Rights Reserved.
Thank You! 0102  2001 Level 3 Communications, Inc. All Rights Reserved.


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