Level 3 Enabling Skype Thru New VoIP S.A.

August 16, 2004

 

Global Internet Telephony Company Using Level 3 Network To Support New “SkypeOut” Offering

LONDON, July 23, 2004 – Level 3 Communications, Inc. today announced that it has signed an agreement to supply wholesale Voice-over-IP services to Skype, the global Internet telephony company.

Under the terms of the agreement, Skype will use Level 3’s IP-based voice termination service to support its new consumer offering, SkypeOut. The service enables Skype users to make Voice-over-IP calls from their personal computers to any phone anywhere in the world.

“Skype has enjoyed tremendous success in bringing the benefits of Internet calling to consumers all over the globe,” said Niklas Zennström, Skype’s co-founder and chief executive officer. “With SkypeOut, we are expanding our service significantly. Our subscribers will now be able to make IP-based voice calls outside the peer-to-peer environment to friends and family who use standard wireline or cell phones, all at highly competitive rates.”

“We selected Level 3 as a termination partner because of the quality and reliability of their network and because of Level 3’s industry-leading experience as a provider of wholesale VoIP services. In particular, Level 3’s softswitch platform provided us with a simple, seamless interface between Skype’s IP-based calling environment and the public switched telephone network. We look forward to working with Level 3 to further enhance the value of Skype services for our existing and prospective customers.”

“More than 7 million people in over 170 countries have joined Skype since the company launched its Internet telephony software last year, and the company averages close to 400,000 active users at any point in time,” said Sureel Choksi, president of softswitch services for Level 3. “By any measure, that is a significant accomplishment, and a testament to the quality of Skype’s offering and the inherent advantages of Voice over IP.”

“We’re extremely pleased that Skype has chosen Level 3 as a primary provider of voice termination services,” said Brady Rafuse, president of Level 3’s European operations. “We believe we deliver superior value and experience to our termination customers, and we look forward to supporting Skype on this important initiative.”

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