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Level 3 Voice Services Network Architecture June 15, 2004

Level 3 Voice Services Network Architecture June 15, 2004. About Level ( 3 ) Communications. Network 19,000 mile North American intercity network 72 North American markets in service 3,600 mile Pan European network 20 European markets in service

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Level 3 Voice Services Network Architecture June 15, 2004

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  1. Level 3 Voice Services Network ArchitectureJune 15, 2004

  2. About Level(3) Communications • Network • 19,000 mile North American intercity network • 72 North American markets in service • 3,600 mile Pan European network • 20 European markets in service • Fully owned Trans-Atlantic undersea capacity via Yellow • MPLS used to manage QoS from end to end • Softswitch Operating Experience • Developing and operating Softswitch platforms since 1998 • Running VoIP since 1999 • 100% Softswitch infrastructure for VoIP and Dial traffic • CLEC-based services in 48 states with 1.8 million trunks • Rate center coverage to 93% of the U.S. population • More than 24 Billion minutes of Softswitch traffic per month • Over 300 Billion lifetime Softswitch minutes

  3. Gateway Services Fiber Services Services & Revenue Breakdown Softswitch Services – 42% of Communications Revenue(1) Voice Services Managed Modem IP & Data Services – 26% of Communications Revenue(1) DSL Aggregation Security & VPN Dedicated Internet Access (3)FlexSM Data Services Transport & Infrastructure Services – 32% of Communications Revenue(1) Private Line Wavelengths Transatlantic & Backhaul Fiber Services Technical Support Colocation (1) Percentages are based on first quarter 2004 Communications GAAP revenue

  4. Softswitch Background • VIPER softswitch • Developed in-house and supported by internal developers • Patented in August 2002 • Incremental capacity can be added at a fraction of the cost of circuit-switched solutions • Co-carrier trunk plant • National network of direct interconnects to all major LECs • Operational experience • Created the OSS and processes to manage large volume of traffic at significantly lower costs than legacy providers • Ability to extend platform to other services • Continuing to invest in platform • Ability to offer additional services using same infrastructure

  5. Level 3 – Softswitch Network Coverage Softswitch Local Footprint • CLEC-based service in 48 states with 1.4 million trunks and full Local Number Portability (LNP) compliance • Rate centers cover approximately 93% of the U.S. population Sample coverage – Kansas City • 13 rate centers • 14,400 trunks installed Long-distance Footprint • 240 IXC tandem interconnects • Wholesale termination of voice calls into Country code 1 (U.S., Canada, and U.S. Territories) andinternationally.

  6. Level 3 Voice Services Overview

  7. Value Added Voice Services Portfolio Level 3 Products Product Type Segment Target Enterprise 3Tone Hosted (Turn-Key Applications) Consumer HomeTone Consumer or Enhanced (Class 5 Functionality) Enhanced Local Enterprise Transport ( Building Blocks) Local Inbound Toll Free Transit/Peering Termination Wholesale • Level 3 provides a vertically integrated suite of VoIP products which allows customers to choose the amount of product complexity they want to manage

  8. Value Added Enhanced + Hosted Application Transport + E911, Class 5 Origination & Termination HomeTone + Business Features Voice Services Portfolio Level 3 Products Product Type Capabilities = 3Tone Hosted (Turn-Key Applications) = HomeTone Enhanced (Class 5 Functionality) = Enhanced Local Enhanced Local Transport ( Building Blocks) Local Inbound Toll Free Transit/Peering Termination = • Level 3 provides a vertically integrated suite of VoIP products which allows customers to choose the amount of product complexity they want to manage

  9. Level 3 Voice Architecture

  10. IP and PSTN Interfaces Signaling Gateway • Takes external signaling in both traditional TDM and IP mechanisms and normalizes them to SIP for use in the Level 3 Network. IP Media Gateway • Media Interworking and border control of the Level3 IP Network; provides security, NATing, topology hiding etc. TDM Media Gateway • Media Interworking function between the TDM/PSTN network and the IP Network.

  11. Network Features Session Controller • This device establishes and controls sessions in the network. • It maintains state and controls gateways Network & Feature Servers • Receives SIP signaling and applies routing or feature services Media Servers • End points used by Feature Servers to manipulate or send media (announcements, conferences, etc).

  12. 3Voice Termination (IP Handoff) Logical Architecture

  13. 3VoIP Local Inbound Logical Architecture

  14. 3VoIP Enhanced Local Logical Architecture Inbound Architecture works like 3VoIP Inbound Local Outbound Architecture works like 3VT(IP) with End Office Termination

  15. HomeTone Logical Architecture

  16. Regulatory Environment • Level 3 is a certified telecommunications service provider at the federal and state levels • Registered as a CLEC in all states except Iowa and Maine • Supports E911, Operator/ Directory Services, LNP, N11, etc • Forbearance petition filed in January 2004 • Asks FCC to reaffirm that legacy switched access charges to not apply to voice over IP

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