Level 3 Communications and Bell Atlantic Reach Agreement on Reciprocal Compensation Rates

Level 3 Communications and Bell Atlantic Corporation have reached a settlement agreement on reciprocal compensation billing disputes, establishing new intercarrier compensation rates between the two local exchange carriers. The agreement, contingent upon approval by regulatory authorities, ensures Level 3 will be paid for traffic terminated from Bell Atlantic and resolves past disputes over reciprocal compensation billing issues. This development is significant for Level 3, as it settles past disputes, provides predictability for future payments, and aligns payments with its view that all interconnection payments should be cost-based.

Key Takeaways:

• Level 3 Communications and Bell Atlantic Corporation have reached a settlement agreement on reciprocal compensation billing disputes, establishing new intercarrier compensation rates between the two local exchange carriers.
• The agreement resolves past disputes over reciprocal compensation billing issues and ensures Level 3 will be paid for traffic terminated from Bell Atlantic.
• The implementation of the new rate structure is contingent upon approval by relevant regulatory authorities.
• Level 3's Managed Modem service, which utilizes Softswitch technology, is expected to benefit from this agreement, as it will accelerate the rollout of the service in the Northeast Corridor of the United States.
• The agreement puts Level 3 in a more competitive position in the Managed Modem market, as it diminishes the importance of reciprocal compensation.
• Level 3's Softswitch technology enables the company to interconnect as a co-carrier without the need for a circuit switch.
• The agreement is significant for Level 3, as it settles past disputes, provides predictability for future payments, and aligns payments with its view that all interconnection payments should be cost-based.

Statistics:

• Level 3 introduced its Managed Modem services in the Fall of 1998.
• The company's Managed Modem service allows customers to order the service on a per modem port basis and pay a fixed rate per month.
• Level 3's Softswitch technology interconnects customers as a co-carrier without the need for a circuit switch.
• Level 3's common stock is traded on The Nasdaq National Market (U.S.) under the symbol LVLT.

Sources:

• PR Newswire, "Level 3 Communications, Inc. and Bell Atlantic Corporation Reach Agreement on Reciprocal Compensation Rates," Oct. 21.
• Level 3 Communications, Inc. press release, "Level 3 Communications Introduces Managed Modem Service," [insert date].
• Level 3 Communications, Inc. press release, "About Level 3 Communications," [insert date].
• Nasdaq, Level 3 Communications, Inc., Symbol LVLT.