From the Wires
Level 3 and XO Communications Sign Settlement-Free Peering Agreement
Agreement Based on "Bit-Mile" Balance Provides Customers with Efficient, Cost-Effective Service
By: PR Newswire
Jan. 7, 2013 07:00 AM
BROOMFIELD, Colo., Jan. 7, 2013 /PRNewswire/ -- Level 3 Communications, Inc. (NYSE: LVLT) and XO Communications today announced they have entered into a long-term settlement-free Internet traffic exchange agreement, also commonly referred to as a peering agreement, that is based on the bit-mile balance approach.
The peering agreement ensures that customers on each of the two Internet service providers' networks can continue to exchange data with customers on the other service provider's network efficiently and cost-effectively. It is based on the bit-mile peering approach which measures both the volume of traffic exchanged and the distance over which that traffic is carried by each network. In order to keep the relationship equitable and settlement-free, both networks carry approximately the same bit-miles of data, a model that promotes efficient, high-quality service for customers, while ensuring a balanced cost burden across each network.
As the Internet continues to grow and evolve, this approach resolves the imbalances that can occur in traffic patterns and that would otherwise result in increased network costs to one provider or the other involved in a peering relationship. When asymmetry occurs, the Internet traffic carriers agree to adjust traffic routing and interconnections to maintain a fair and equitable relationship between the two networks. They must also maintain the ability to exchange traffic in a scalable, resilient and reliable manner so that consumers can enjoy the best possible Internet experience. The bit-mile arrangement ensures this consumer benefit while doing so in a way that is equitable to both Level 3 and XO.
"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."
"XO Communications supports equitable settlement-free peering to ensure fair and unconstrained interconnection," said Randy Nicklas, senior vice president and chief technology officer, at XO Communications. "This agreement will ensure a balanced backbone cost burden between our two networks as we continue to grow while providing high-quality service for our respective customers."
The 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.
About XO Communications
About Level 3 Communications
© Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, Level (3) and the Level 3 Logo 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.
Website Access to Company Information
Visitors to the Investors Relations web pages can view and print copies of Level 3's SEC filings, including periodic and current reports on Forms 10-K, 10-Q, 8-K, as soon as reasonably practicable after those filings are made with the SEC.
Copies of the charters for each of the Audit, Compensation and Nominating and Governance committees of Level 3's Board of Directors, its Corporate Governance Guidelines, Code of Ethics, press releases and analysts and investor conference presentations are all available through the Investor Relations web pages.
Please note that the information contained on any of Level 3's web sites is not incorporated by reference in, or considered to be a part of, any document unless expressly incorporated by reference in that document.
Some statements made in this press release are forward-looking in nature and 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. Important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the company's ability to: successfully integrate the Global Crossing acquisition or otherwise realize the anticipated benefits thereof; manage risks associated with continued uncertainty in the global economy; obtain additional financing, particularly in the event of disruptions in the financial markets; manage continued or accelerated decreases in market pricing for communications services; maintain and increase traffic on its network; develop and maintain effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; adapt to rapid technological changes that could adversely affect the company's competitiveness; defend intellectual property and proprietary rights; obtain capacity for its network from other providers and interconnect its network with other networks on favorable terms; attract and retain qualified management and other personnel; successfully integrate future acquisitions; effectively manage political, legal, regulatory, foreign currency and other risks it is exposed to due to its substantial international operations; mitigate its exposure to contingent liabilities; and meet all of the terms and conditions of its 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.
SOURCE Level 3 Communications, Inc.
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