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© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
The Level 3 Story
© 2016 Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, MyLevel3, the Level 3 Communications Logo, and the Level 3 Logo, and “Connecting and Protecting the
Networked World” are 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. Level 3 services are provided by
wholly owned subsidiaries of Level 3 Communications, Inc. Microsoft, Lync are either registered trademarks or trademarks of Microsoft Corporation 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.
Updated February 2016
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Company Overview
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Over $8B
Pro Forma LTM Revenue
~12,500
Employees
Connecting 60+
Countries and Counting
Approx. 360
Multi-tenant Datacenters
200,000+
Route Miles of Fiber Globally
Over 43Tbps
of Global IP Capacity
More than 12B+
Minutes Per Month in VoIP Traffic
Company Overview
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Global Network
Global-to-Local Network in North America, Latin America,
Europe, the Middle East and Asia Pac
200,000 route miles of fiber:
• 106,000 intercity
• 67,000 metro
• 33,000 subsea
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 4
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
3. Real-Time Communications Moving to IP
Voice and other real-time communications moving to IP-based delivery platforms
5. Content Everywhere, Anywhere
Rapid rise in the consumption of IP video, often via mobile devices, is
driving traffic growth across the network
4. Globalization
Continued globalization of value chains for large enterprises
and MNCs in search of top-line growth and efficiency
6. Big Data/IoT
Rapid increase in the amount of data being captured and stored, with
emerging analytic approaches to derive insights
7. Software - Defined Networks
Separation of network control from data forwarding – for greater efficiency, adaptability and responsiveness
2. Security
Increase in the number, types, sophistication and volume of threats
1. Private-to-Public Networking
New enterprise network architectures as companies increasingly look to the right mix for efficiency
Key Trends Affecting Enterprises
IT Enabled Organization
5
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
GROWTH
Traffic growing
~23%/year
DDoS attacks*
up 117%
in the past year
IT spend down
1.3% in 2015
* DDoS: Distributed Denial of Service; WAN=Wide Area Network; SDN =Software Defined Networking; NFV=Network Function Virtualization
Growth Statistic Sources: Cisco Visual Networking Index Report, 2015
DDoS Statistic Source: Akamai's Q1 2015 State of the Internet Security Report
CIO Challenges Anchor
Level 3 Value Proposition
EFFICIENCY SECURITY
• Mobile traffic growing ~57%/year
• ~10B new connected devices
by 2019
6
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
CUSTOMER NEEDS
• Evolve infrastructure with processes
and customer systems to meet
growth, deploy Cloud strategies,
operationalize Big Data, connect
sites
• Deliver a secure, fast, online
experience and premium content to
customers
• Get services and support throughout
lifecycle, from startup through
network buildout
• Global footprint and broad portfolio
of scalable network solutions
• CDN Solutions and Website
Acceleration
• Professional and Managed Services
• Strategic advisor who understands
IT challenges and flexibility needs
• Reduce costs while maintaining
operational efficiency
• Improve speed to market
• Partner with providers with flexible
models to meet end-to-end or
individual needs
• Efficiently connect remote workers
• Get more control of network services
• Implement scalable voice services
globally
• Global footprint and a broad portfolio of
network solutions, tailored to your needs
• Level 3® Managed Network Services
• Level 3® Voice Complete® to efficiently
meet global voice needs
• Level 3SM Adaptive Network Control for
dynamically scaled bandwidth and real-
time data
• Network-based security approach,
backed by global threat visibility
• Advanced threat intelligence and
security experts
• Security services and 24 x 7
support
• Reduce risks: downtime, brand
reputation, legal repercussions,
revenue loss
• Secure increasingly complex,
distributed environments
• Free up IT resources to focus on
other critical IT tasks
• Meet continually escalating threat
volumes and types
GROWTH EFFICIENCY SECURITY
HOW LEVEL 3 CAN HELP
7
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
NETWORK
• SDN – Global expansion of Level 3SM Adaptive
Network Control with Enhanced Management,
Dynamic Capacity, Dynamic Connections and
Dynamic Prioritization
• SDN and NFV – Virtual managed CPE service
• Unified global Ethernet network edge
• 100G MPLS core network upgrade with full 10G
service ports
• Ultra-high-speed (100G) Internet service ports
• Internet expansion in APAC
• High-availability VPN, Internet bundles
• Managed LAN/WLAN service and Wi-Fi hot
spots
• Rapid-deploy wireless access
• Content Delivery Network capacity expansion
and feature enhancement for Level 3SM Web
Acceleration services
• VPN PoP expansion in China and India
• Ethernet expansion markets in EMEA and APAC
*Reflects Level 3’s plan as of January, 2016. Subject to change at the sole discretion of Level 3 Communications.
Global Product Roadmap:
2016-2017*
8
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
*Reflects Level 3’s plan as of January 2016. Subject to change at the sole discretion of Level 3 Communications.
Global Product Roadmap:
2016-2017*
CLOUD and DATA CENTER
• Level 3® Cloud Connect Solutions –
geographic and partner expansion
• Level 3SM Dynamic Connections to cloud
partners, partner API integration
• Level 3® Carrier Cloud Voice ecosystem
• Data center expansion
• Data centers – metered power expansion
• Level 3® Video Cloud – Level 3® Vyvx® Internet
Access and Enhanced Full-time Distribution
• Cloud firewall with NAT enhancements
VOICE and UC&C
• Level 3® Voice Complete® feature enhancement
• Level 3 Voice Complete global expansion
(SIP/TDM trunking plus an array of enterprise
voice services)
• Level 3® Managed Voice migration solution
expansion (Level 3® Professional Services)
• Level 3® Contact Center services – network-
based
• Level 3SM Unified Communications &
Collaboration enhancements - hosted UC
expansion (NA, EMEA, LATAM)
• Level 3SM Collaboration Solutions integration and
feature expansion
9
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
SECURITY
• Level 3® DDoS Mitigation Service enhancements
• Level 3SM Advanced Threat Intelligence service
• Enterprise Security Gateway global expansion
with next-generation capabilities
• Secure Access Cellular (EMEA)
• Web Application Firewall
• CDN DDoS Mitigation
• Level 3® Professional Security services
*Reflects Level 3’s plan as of January, 2016. Subject to change at the sole discretion of Level 3 Communications.
Global Product Roadmap:
2016-2017*
10
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Practice Areas
*Professional services options for customers on pathway from TDM based services to full voice IP migration; UCC & Beta Customers
• Wi-Fi Network
Assessment
• Wireless Failover
• Wi-Fi Services
• Managed
Broadband
Wi-Fi
• Network
Assessment
• Managed Optical
Fiber Networks
• MPLS VPN and
VPLS
Data Networks
• Voice Network
Assessment
• Managed SBC
• Managed Voice
Migration*
Voice
• Vulnerability
Assessments
• Overall Security
Assessment and
Audit Readiness
• Wireless Network
Assessment
• Security Policy
• SAAS Portal
Security
Manage
Implement
Design
Assess
Level 3 Professional Services Allow
You to Focus on Your Core Business
11
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Proven Customer Experience
12
To be the trusted connection to the
networked world, providing enterprise and
wholesale customers with a consistent and
reliable global customer experience
Level 3’s Customer
Feedback Integration Loop
Constantly improving to adapt to the needs of our customers
Strive to continuously improve
throughout the customer journey
We aim to deliver a superior customer
experience by being reliable, responsive,
delivering on our promises and being easy
to do business with
VISION
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
MyLevel3 Benefits
• Personalized Dashboard. Quick
access to business-critical
information: a consolidated view of
ordering, billing and service
management information.
• Simplified Service Management.
Create, view, update, escalate or
cancel tickets and receive proactive
notification of activity and
maintenance across your services.
• Robust Reports and Network
Tools. Monitor and manage your
network performance.
• Convenient and Secure Billing.
Easily view, download and analyze
your invoices and pay them online.
MyLevel3SM Customer Portal
Get anytime, anywhere access to MyLevel3 portal. Experience simple
navigation, a feature-rich dashboard, personalization features, access to
interactive maps, reporting, ordering and invoicing.
Streamline management of your services,
save time, control costs and resolve issues.
13
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
*Gartner “Magic Quadrant for Network Services, Global,” by Neil Rickard, Bjarne Munch, January 14, 2016; Gartner Critical Capabilities for Wireline Telecom Services, U.S. Danellie Young and Sorell Slaymaker U.S. February 29, 2016
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's
research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Strong Industry Recognition
Level 3 Positioned in the Challengers Quadrant in the
2016 Gartner Magic Quadrant for Network Services, Global*
2016 Level 3 Communications receives third highest product scores in Gartner’s
Critical Capabilities for Wireline Telecom Services, U. S. report*
2016 Atlantic-ACM U.S. Long Haul Wholesale Service Provider Excellence in Service Delivery
and Customer Service
2015 Atlantic-ACM North American Business Connectivity for Brand, Network Performance,
Data and Voice Value
2015 MEF Ethernet Excellence Awards
• Retail Service Provider of the Year – North America, Global, and CALA
Wholesale Service Provider of the Year – North America, CALA
2015 Frost & Sullivan Best Practices Award for:
• Business Metro Carrier Ethernet Services for Competitive Strategy and Innovation
Leadership Award
• VoIP Access and SIP Trunking Product Line Strategy Leadership Award
2015 Vertical Systems Group year-end U.S. Carrier Ethernet Service Market
2015 Vertical Systems Group year-end Global Provider Ethernet Leaderboard
14
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
15
The Level 3 Difference
Applied knowledge and
capabilities solve our
customers’ unique
problems
• Helping customers succeed by
leveraging our deep industry
experience and tailoring our
product solutions to fit
Reliable and secure
network offering the best
performance and delivery
solutions
• Level 3 optimizes for our customers’
biggest pain points: efficiency, security
and reliability
Global network, products
and operations
• Whether it’s a local service or a global
network, Level 3 provides a consistent
offering and customer experience that
reduces operational complexity for our
customers
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Highlighted Industry
Trends & Key Investment
Areas
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
3. Real-Time Communications Moving to IP
Voice and other real-time communications moving to IP-based delivery platforms
5. Content Everywhere, Anywhere
Rapid rise in the consumption of IP video, often via mobile devices, is
driving traffic growth across the network
4. Globalization
Continued globalization of value chains for large enterprises
and MNCs in search of top-line growth and efficiency
6. Big Data/IoT
Rapid increase in the amount of data being captured and stored, with
emerging analytic approaches to derive insights
7. Software - Defined Networks
Separation of network control from data forwarding – for greater efficiency, adaptability and responsiveness
2. Security
Increase in the number, types, sophistication and volume of threats
1. Private-to-Public Networking
New enterprise network architectures as companies increasingly look to the right mix for efficiency
Key Trends Affecting Enterprises
IT Enabled Organization
17
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
1 RightScale’s January 2015 State of the Cloud Survey http://www.rightscale.com/press-releases/rightscale-releases-2015-state-of-the-cloud-report
• Flexibility: critical applications
require maximum security and
availability while other
applications require the ability
to scale
• Meet a blend of demands cost-
effectively to budget
• Leverage existing infrastructure
investments, but tap into the
ubiquity, economics and speed
of the Internet and public cloud
• Hybrid Cloud: Enterprises
continue to tap into the combined
security and reliability of private
clouds and the scale and agility
of public clouds:
• 55% of enterprises
surveyed are planning for
hybrid clouds.1
• Hybrid WAN: To expand
connectivity between sites
affordably, customers are
combining reliable MPLS with
public Internet connectivity.
• SDN is helping to automate and
manage hybrid environments.
• Level 3’s Adaptive Network
Control-enabled next-gen
Carrier Ethernet platform
connects clouds in the hybrid
environment while maintaining
the on-demand experience of
the Cloud
• Level 3 offers a wide range of
managed Hybrid WAN access
options that meet the
price/performance requirements
of the enterprise applications
mix
• Major CSPs and carrier-neutral
facilities are on-net to Level 3
Trend: Hybrid Environments
18
Achieving the right blend of scalability, flexibility and reliability through Hybrids
Customer Need The Trend Level 3’s Differentiation
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Maintain control over the end-
to-end performance of
applications as you migrate
them to public cloud
• Network Portfolio: The network technology that fits partners’ and customers’ desired architectures
• Global Reach: Cloud connections in NA, EMEA, LATAM, and APAC
• CSP Integration: Tier 1 global partners, Tier 2 local partners, as well as connectivity, APIs and portals
• Data Center Connectivity: 100+ Level 3 data centers, 500+ third party data centers
• Ecosystem Momentum: Joint solution and go-to-market strategies with our partners (Microsoft Azure for Office 365,
AWS Compliance Bundle, Azure Government)
• Revolutionized Connectivity: Self service, on-demand experience with Enhanced Management and Dynamic
Connections offerings; innovation testing with our SDN capabilities
Investing in Level 3®
Cloud Connect Solutions
19
Private, Secure Connectivity to the Cloud
PREDICTABLE AND
RELIABLE PERFORMANCE
Level 3 Cloud Connect Solutions
SIMPLIFIED
SECURITY
DYNAMIC
AGILITY
GLOBAL
CONNECTIVITY
When choosing private
connectivity, the
applications you migrate
and optimize to the
cloud are within your
trusted perimeter
SDN lifecycle service
orchestration allows you to
take control over your user
experience and dynamically
respond through our Adaptive
Network Control Solutions
Connect offices around
the world to the local
cloud and data center
resources needed to run
mission-critical
applications
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Award-winning platform, globally consistent product, systems and processes to
create the right customer experience
One Network One PortfolioOne Systems Suite
The Right Customer
Experience
Investing in Level 3® Ethernet Services
20
Global Ethernet Platform with Adaptive Network Control
• SDN lifecycle orchestration of a next-generation
resilient packet ring architecture supporting EVPL,
EPL, E-Access-based carrier Ethernet services
• MEF CE 2.0 certified
• 198 markets worldwide, 146 markets in North
America, 26 Markets in EMEA
• 15-business day on-net installation intervals
• 15-business day on-net installation intervals
• Up to 99.999% service availability
• End-to-end availability and performance guarantees
• Adaptive Network Control with automated analytics,
alerts and Dynamic Capacity
• Turnkey solutions with Level 3SM Site Readiness and
Advanced Technical Solutions
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
• Increase systems and data
security in an environment of
quickly escalating threats
• Reduce risks to the enterprise:
Downtime, brand reputation,
legal repercussions, revenue
loss
• Secure increasingly complex
environments: Cloud, hybrid,
BYOD, supply chains
• Free up the number of IT
resources diverted to security
concerns
• Security threats continue to
escalate—Hacktivists, nation
states, organized crime
increasingly getting into the act
• 1,800: New distinct families of
viruses detected in the past year1
• DDoS attacks resulting in service
level issues, service degradation
and outages increased 50x
(400Gbps)2
• $3.5M: Global average cost to a
company due to data breaches3
• Network-based security
approach backed by global
threat visibility
• Comprehensive ability to
predict, detect, alert and
respond to attacks
• Level 3SM Threat Intelligence
Service and security experts
• Broad portfolio of security
services and 24 x 7 support
• The ability to protect your WAN
and online presence
Trend: Growing Need for Security
21
Borderless networking and online presence demands a fresh security approach
Customer Need The Trend Level 3’s Differentiation
1 Source: Fortinet Threat Landscape Report 2014 https://www.fortinet.com/sites/default/files/whitepapers/Threat-Landscape-2014.pdf
2 Source: Arbor’s 10th Annual Worldwide Infrastructure report https://www.arbornetworks.com/arbor-networks-10th-annual-worldwide-infrastructure-security-
report-finds-50x-increase-in-ddos-attack-size-in-past-decade
3 Ponemon 2014 Cost of Data Breach Study: Global Analysis
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
22
London
FrankfurtChicago
Los Angeles Dallas
New York
Washington, DC
Traffic is pulled through Level 3’s
nine regional scrubbing centers
Amsterdam
São Paulo
4.5 Tbps of high capacity ingest across globally distributed scrubbing
centers reduces latency and improves performance
Investing in Level 3® DDoS Mitigation
Network Globally
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
• In the digitized business model,
Enterprises are using IoT to
collect real-time data for BI
• Enterprises are pushing
information and services
through connected devices,
appliances, vehicles, toys
• Devices require efficient means
to obtain firmware and content
updates in a scalable way
• Security needs to evolve to
protect the end-users, service
providers and manufacturers
• IoT is affecting enterprises,
consumers and even homes and
cities as ‘smart’ goes beyond the
smartphone to smart living
• The number of IoT things are
predicted to increase to 38.5
billion in 20201
• Machine to machine will provide
opportunities for consumers to
digitally engage with their
devices, vehicles, appliances to
create a completely new user
experience
• Level 3 operates a highly
scalable global-to-local network,
connecting 60+ countries
• Scalable global Tier 1 Internet
backbone already supports the
updates of millions of devices
today
• Global Content Delivery
Network supports digital
downloads and firmware
updates
• Secure content delivery to
protect the enterprise’s online
presence and brand
Trend: Internet of Things
23
IoT will help create smart working and smart living
Customer Need The Trend Level 3’s Differentiation
1 Juniper Research press release, July 2015 http://www.juniperresearch.com/press/press-releases/iot-connected-devices-to-triple-to-38-bn-by-2020
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
WHY LEVEL 3 CDN?
24
Architected for high capacity, high
availability and low latency, the result
is rapid and reliable
delivery of content to end-users.
Investing in Level 3®
Content Delivery Network
Delivering content on a global scale, quickly, securely and reliably
PERFORMANCE
Provides protection and encrypted
delivery of content over our IP
network. We actively monitor for
and mitigate security threats to
provide a comprehensive, layered
strategy to security.
SECURITY
A truly global CDN solution enables
our customers to grow their
customer base through the reach
and reliability of our high-capacity,
high-speed network.
SCALE
SOLUTIONS
• Global footprint across six continents
• Directly connected to the Level 3 IP backbone
• In-network acquisition of broadcast channels for OTT-
Video and Internet TV platforms
• Multi-regional Level 3SM Origin Storage platform features
high-performance egress and rapid time to first byte
• IP Network directly connected to major cloud storage
platforms like AWS, Google Cloud Platform and Azure
• Trusted and used by the world’s largest media, Internet
and entertainment companies today
Video Delivery: Delivers a quality experience across a
broad range of devices, simply and reliably
• Video-On-Demand
• Live Events
• Live Linear Internet Channels
Digital Downloads: Optimally caches objects at the edge,
helping you realize substantial origin offload and reduced
delivery costs
• Media: Music and images
• Software: Apps, patches, games and updates
• Files: PDFs, spreadsheets and text files
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
• Agile, flexible and on-demand
network as a service that
enables the enterprise journey
to the cloud
• In a Hybrid Cloud environment
the applications need to be
connected to a network that
echoes a Cloud-like experience
• To control the user experience
of networking services
• Dynamic capacity and
connectivity among branch
sites and datacenters
• Giving the enterprise customer
the ability to control their user
experience and consume the
network as a service
• Delivery intervals moving from
months to minutes
• SDN enablement starts with
Ethernet connectivity between
the clouds, to enable a Hybrid
WAN and move to IP VPN
connectivity to the branch
• Global SDN offering: Level 3SM
Adaptive Network Control
• Allows network control to be ad-
hoc via the customer portal or
API, scheduled, or automated
to real-time network demand
• Enhanced Management
capabilities provide visibility into
network and service
performance across every
segment of the network (not
just end-to-end)
• You can custom define
thresholds and how you want to
be alerted
Trend: Software-Defined Networking
25
Network as a Service will allow the enterprise to control their user experience
Customer Need The Trend Level 3’s Differentiation
1 Juniper Research press release, July 2015 http://www.juniperresearch.com/press/press-releases/iot-connected-devices-to-triple-to-38-bn-by-2020
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Allows customers to control their user experience to the Cloud
Control CoS priorities
across customer’s VPN
Level 3SM Enhanced
Management
Level 3SM Dynamic
Capacity
Dynamic
Connections
Dynamic Prioritization
Visibility into end-to-end
performance with
personalized alerting and
actions
Real-time portal control,
scheduled or automated flexing
of capacity up to x3 / 6Gbps
On-demand connections
including to CSPs
Alpha trial done with AWS
On-Demand, real-time
control of QoS
Adaptive Network Control Solutions: SDN enables enterprises to dynamically control, scale, create and
prioritize network connectivity to improve application performance across their network.
Three-Way Adaptive Network Controls:
Ad-hoc via portal or API
Useful for moving applications into production or supporting new services
Automatically Triggered by Enhanced Management
Low-touch option to focus on your business
Scheduled
Supporting regular hybrid workloads such as backups or supporting events
Investing in Level 3SM Adaptive
Network Control Solutions
26
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Vertical Offering and
Differentiation
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Level 3 solutions can help you:
• Ensure uptime for your high-availability, care-critical
requirements
• Improve outcomes and patient satisfaction with high-
performance data sharing
• Protect and secure critical applications, proactively
• Scale to patients and subscriber call volumes with
network-based voice and contact center solutions
Customers include:
• 8 of the nations 10 largest providers
• 8 of the nations 10 largest payers
• 8 of the nations 10 largest EHR companies
Solutions for Industry Sectors
HEALTHCARE
Our Offer
• Level 3® Smart WAN®
• Level 3® Data Center
Networking
• Level 3SM Unified
Communications &
Collaboration
• Level 3SM BCDR
• Level 3SM Managed
Security Services
• Level 3® Contact
Center
• Level 3® Cloud
Connect Solutions
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 28
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Level 3 Delivers:
• Solutions catered to Federal, State and Local
challenges, with a consultative approach
• Contract flexibility: Networx Enterprise, WITS 3, GNS,
GSA Schedule 70, various DITCO and Classified
programs, additional State and Regional vehicles
• Ability to protect your mission-critical data with
reliability, performance and security
• Ability to improve performance demands while lowering
your total cost of ownership
Customers include:
• Over 200 federal agencies and divisions
Solutions for Industry Sectors
PUBLIC SECTOR: GOVERNMENT SOLUTIONS
Our Offer
• Global, private IP network
connectivity: IP VPNs, Waves,
EPLAN, Ethernet Private Line
• Secure, scalable,
always-on platform
• Level 3SM Managed Security
Services
• Level 3® Data Center
Networking
• Level 3SM Unified
Communications &
Collaboration
• Level 3SM BCDR
• Cloud Connect Solutions
• Level 3® Contact Center
• Level 3® Professional Services
• Satellite and Teleport services
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 29
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Level 3 solutions can help you:
• Find the right solutions with our consultative approach
and Research & Education expertise
• Reach your students and faculty, across town or the
globe, with Level 3’s data and CDN services
• Scale your solutions to meet tomorrow’s challenges
• Secure and protect your student, faculty and
proprietary data, reliably
• Meet your institution's technological performance
needs while lowering your total cost of ownership
• Leverage several contract vehicles: GSA Schedule 70,
as well as several State and Regional vehicles
Solutions for Industry Sectors
PUBLIC SECTOR: EDUCATION
Our Offer
• Level 3® Data Center
Networking
• Level 3SM Unified
Communications &
Collaboration
• Level 3SM BCDR
• Cloud Connect Solutions
• Level 3® High Performing
Website Solution
• Level 3SM Managed Security
Services
• Global, Private IP network
connectivity: IP VPNs, Waves,
EPLAN, Ethernet Private Line
• Secure, scalable,
always-on platform
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 30
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Solutions for Industry Sectors
MEDIA & ENTERTAINMENT
Our Offer
• Secure live and on-demand
video encoding, storage and
delivery
• Broadcast distribution direct to
home, cable and IPTV
platforms worldwide
• Satellite and teleport services
• Content delivery and world-
wide edge caching (CDN)
• Single secure platform for
video, voice and data traffic
from sports venues worldwide
• Expert professional services
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 31
Level 3 solutions can help you:
• Deliver video any way you want, with platform flexibility
for popular broadcast and Internet formats
• Successfully deliver compelling content to a
demanding audience that expects a quality video
experience
• Maximize advertising and subscription revenues by
reaching the broadest global audience possible
Customers include:
• 4 of the top 6 U.S. Movie Studios
• 7 of the top 10 OTT Video Market Players
• 4 of the top 6 Broadcasters
• 3 of the 5 Top U.S. Pro-Sports Leagues
• 8 of the top 10 Cable MSOs
• 6 of the top 10 Social Media players
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Solutions for Industry Sectors
GLOBAL BANKING AND FINANCE
Our Offer
• Global, private IP network
connectivity: IP VPNs, Waves,
EPLAN, Ethernet Private Line
• Data centers providing
colocation, hosting and disaster
recovery
• Secure, scalable,
always-on platform
• Level 3SM Managed Security
Services
• Level 3® Professional Services
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 32
Level 3 solutions can help you:
• Efficiently manage massive growth in financial
transactions
• Operate close to the many of the world’s leading
financial centers
• Gain low-cost entry to new markets
• Minimize capital outlay while maximizing access to new
market opportunities
• Authenticate callers and identify potential fraudulent
activity via secure call center solutions
Customers include:
• 8 of the top 10 global banks
• 8 of the top 10 U.S. banks
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Solutions for Industry Sectors
ONLINE GAMING
Our Offer
• Global fiber IP network
• Global Content Delivery
Network
• Game Server Hosting and
Level 3® Site Transformer®
• Level 3® Bandwidth Optimizer
• Live Events
• Comprehensive Security
Services
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 33
Level 3 Delivers:
• Ultra-fast low-latency network for great gameplay, with
room to grow
• CDN capability to support massive traffic peaks
and flash crowds
• Seamless delivery of game launches, tapping
into two decades of live online video streaming
• Secure delivery of game payloads and
mitigation against DDoS attacks
• Fast, easy entry to new markets; scale as you grow
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Solutions for Industry Sectors
MANUFACTURING
Our Offer
• Enterprise WAN
• Level 3SM Managed Security
Services
• Level 3® Data Center
Networking
• Level 3® Cloud Connect
Solutions
• Content Delivery Network
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 34
Level 3 solutions can help you:
• Expand market reach
• Protect and secure sensitive organization data,
proactively
• Leverage the power of the cloud and hybrid
connectivity to optimize performance across the supply
chain
• Securely expand into the world of connected devices,
taking advantage of technological advances
Customers include:
• 8 of the world’s 10 largest manufacturers
• 8 of the world’s top 10 electronics manufacturers
• 8 of the world’s top 10 automotive manufacturers
• 8 of the world’s top 10 heavy industry manufacturers
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Solutions for Industry Sectors
RETAIL
Our Offer
• Level 3® Smart WAN®
• Level 3® Data Center Networking
• Level 3SM Adaptive Network
Control
• Hybrid Networking – Ethernet, IP
VPN and IP Solutions
• Level 3SM Managed Security
Services
• Level 3® Cloud Connect
Solutions
• Level 3® Contact Center
• Level 3SM Unified
Communications & Collaboration
• Level 3SM BCDR
• Managed Wi-Fi – Level 3®
Professional Services
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 35
Level 3 solutions can help you:
• Protect and secure your network and data, proactively
• Overhaul legacy IT environments via Level 3 Solutions
• Connect privately, securely and efficiently to leading
cloud and data center providers to support hybrid
architectures
• Increase bandwidth and throughput to minimize
downtime while supporting digital demands in-store
Customers include:
• 8 of the top 10 World’s Most Valuable Brands
• 8 of the top 10 U.S. Retailers by Revenue
• 8 of the top 10 Fastest-Growing U.S. Retailers
• 8 of the top 10 Most Popular Online Retailers
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
Regional Maps
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.
© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.

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Level 3 Communications / Capabilities and Solutions Overview

  • 1. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. The Level 3 Story © 2016 Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, MyLevel3, the Level 3 Communications Logo, and the Level 3 Logo, and “Connecting and Protecting the Networked World” are 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. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Microsoft, Lync are either registered trademarks or trademarks of Microsoft Corporation 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. Updated February 2016
  • 2. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Company Overview
  • 3. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Over $8B Pro Forma LTM Revenue ~12,500 Employees Connecting 60+ Countries and Counting Approx. 360 Multi-tenant Datacenters 200,000+ Route Miles of Fiber Globally Over 43Tbps of Global IP Capacity More than 12B+ Minutes Per Month in VoIP Traffic Company Overview © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3
  • 4. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Global Network Global-to-Local Network in North America, Latin America, Europe, the Middle East and Asia Pac 200,000 route miles of fiber: • 106,000 intercity • 67,000 metro • 33,000 subsea © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 4
  • 5. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3. Real-Time Communications Moving to IP Voice and other real-time communications moving to IP-based delivery platforms 5. Content Everywhere, Anywhere Rapid rise in the consumption of IP video, often via mobile devices, is driving traffic growth across the network 4. Globalization Continued globalization of value chains for large enterprises and MNCs in search of top-line growth and efficiency 6. Big Data/IoT Rapid increase in the amount of data being captured and stored, with emerging analytic approaches to derive insights 7. Software - Defined Networks Separation of network control from data forwarding – for greater efficiency, adaptability and responsiveness 2. Security Increase in the number, types, sophistication and volume of threats 1. Private-to-Public Networking New enterprise network architectures as companies increasingly look to the right mix for efficiency Key Trends Affecting Enterprises IT Enabled Organization 5
  • 6. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. GROWTH Traffic growing ~23%/year DDoS attacks* up 117% in the past year IT spend down 1.3% in 2015 * DDoS: Distributed Denial of Service; WAN=Wide Area Network; SDN =Software Defined Networking; NFV=Network Function Virtualization Growth Statistic Sources: Cisco Visual Networking Index Report, 2015 DDoS Statistic Source: Akamai's Q1 2015 State of the Internet Security Report CIO Challenges Anchor Level 3 Value Proposition EFFICIENCY SECURITY • Mobile traffic growing ~57%/year • ~10B new connected devices by 2019 6
  • 7. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. CUSTOMER NEEDS • Evolve infrastructure with processes and customer systems to meet growth, deploy Cloud strategies, operationalize Big Data, connect sites • Deliver a secure, fast, online experience and premium content to customers • Get services and support throughout lifecycle, from startup through network buildout • Global footprint and broad portfolio of scalable network solutions • CDN Solutions and Website Acceleration • Professional and Managed Services • Strategic advisor who understands IT challenges and flexibility needs • Reduce costs while maintaining operational efficiency • Improve speed to market • Partner with providers with flexible models to meet end-to-end or individual needs • Efficiently connect remote workers • Get more control of network services • Implement scalable voice services globally • Global footprint and a broad portfolio of network solutions, tailored to your needs • Level 3® Managed Network Services • Level 3® Voice Complete® to efficiently meet global voice needs • Level 3SM Adaptive Network Control for dynamically scaled bandwidth and real- time data • Network-based security approach, backed by global threat visibility • Advanced threat intelligence and security experts • Security services and 24 x 7 support • Reduce risks: downtime, brand reputation, legal repercussions, revenue loss • Secure increasingly complex, distributed environments • Free up IT resources to focus on other critical IT tasks • Meet continually escalating threat volumes and types GROWTH EFFICIENCY SECURITY HOW LEVEL 3 CAN HELP 7
  • 8. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. NETWORK • SDN – Global expansion of Level 3SM Adaptive Network Control with Enhanced Management, Dynamic Capacity, Dynamic Connections and Dynamic Prioritization • SDN and NFV – Virtual managed CPE service • Unified global Ethernet network edge • 100G MPLS core network upgrade with full 10G service ports • Ultra-high-speed (100G) Internet service ports • Internet expansion in APAC • High-availability VPN, Internet bundles • Managed LAN/WLAN service and Wi-Fi hot spots • Rapid-deploy wireless access • Content Delivery Network capacity expansion and feature enhancement for Level 3SM Web Acceleration services • VPN PoP expansion in China and India • Ethernet expansion markets in EMEA and APAC *Reflects Level 3’s plan as of January, 2016. Subject to change at the sole discretion of Level 3 Communications. Global Product Roadmap: 2016-2017* 8
  • 9. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. *Reflects Level 3’s plan as of January 2016. Subject to change at the sole discretion of Level 3 Communications. Global Product Roadmap: 2016-2017* CLOUD and DATA CENTER • Level 3® Cloud Connect Solutions – geographic and partner expansion • Level 3SM Dynamic Connections to cloud partners, partner API integration • Level 3® Carrier Cloud Voice ecosystem • Data center expansion • Data centers – metered power expansion • Level 3® Video Cloud – Level 3® Vyvx® Internet Access and Enhanced Full-time Distribution • Cloud firewall with NAT enhancements VOICE and UC&C • Level 3® Voice Complete® feature enhancement • Level 3 Voice Complete global expansion (SIP/TDM trunking plus an array of enterprise voice services) • Level 3® Managed Voice migration solution expansion (Level 3® Professional Services) • Level 3® Contact Center services – network- based • Level 3SM Unified Communications & Collaboration enhancements - hosted UC expansion (NA, EMEA, LATAM) • Level 3SM Collaboration Solutions integration and feature expansion 9
  • 10. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. SECURITY • Level 3® DDoS Mitigation Service enhancements • Level 3SM Advanced Threat Intelligence service • Enterprise Security Gateway global expansion with next-generation capabilities • Secure Access Cellular (EMEA) • Web Application Firewall • CDN DDoS Mitigation • Level 3® Professional Security services *Reflects Level 3’s plan as of January, 2016. Subject to change at the sole discretion of Level 3 Communications. Global Product Roadmap: 2016-2017* 10
  • 11. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Practice Areas *Professional services options for customers on pathway from TDM based services to full voice IP migration; UCC & Beta Customers • Wi-Fi Network Assessment • Wireless Failover • Wi-Fi Services • Managed Broadband Wi-Fi • Network Assessment • Managed Optical Fiber Networks • MPLS VPN and VPLS Data Networks • Voice Network Assessment • Managed SBC • Managed Voice Migration* Voice • Vulnerability Assessments • Overall Security Assessment and Audit Readiness • Wireless Network Assessment • Security Policy • SAAS Portal Security Manage Implement Design Assess Level 3 Professional Services Allow You to Focus on Your Core Business 11
  • 12. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Proven Customer Experience 12 To be the trusted connection to the networked world, providing enterprise and wholesale customers with a consistent and reliable global customer experience Level 3’s Customer Feedback Integration Loop Constantly improving to adapt to the needs of our customers Strive to continuously improve throughout the customer journey We aim to deliver a superior customer experience by being reliable, responsive, delivering on our promises and being easy to do business with VISION
  • 13. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. MyLevel3 Benefits • Personalized Dashboard. Quick access to business-critical information: a consolidated view of ordering, billing and service management information. • Simplified Service Management. Create, view, update, escalate or cancel tickets and receive proactive notification of activity and maintenance across your services. • Robust Reports and Network Tools. Monitor and manage your network performance. • Convenient and Secure Billing. Easily view, download and analyze your invoices and pay them online. MyLevel3SM Customer Portal Get anytime, anywhere access to MyLevel3 portal. Experience simple navigation, a feature-rich dashboard, personalization features, access to interactive maps, reporting, ordering and invoicing. Streamline management of your services, save time, control costs and resolve issues. 13
  • 14. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. *Gartner “Magic Quadrant for Network Services, Global,” by Neil Rickard, Bjarne Munch, January 14, 2016; Gartner Critical Capabilities for Wireline Telecom Services, U.S. Danellie Young and Sorell Slaymaker U.S. February 29, 2016 Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Strong Industry Recognition Level 3 Positioned in the Challengers Quadrant in the 2016 Gartner Magic Quadrant for Network Services, Global* 2016 Level 3 Communications receives third highest product scores in Gartner’s Critical Capabilities for Wireline Telecom Services, U. S. report* 2016 Atlantic-ACM U.S. Long Haul Wholesale Service Provider Excellence in Service Delivery and Customer Service 2015 Atlantic-ACM North American Business Connectivity for Brand, Network Performance, Data and Voice Value 2015 MEF Ethernet Excellence Awards • Retail Service Provider of the Year – North America, Global, and CALA Wholesale Service Provider of the Year – North America, CALA 2015 Frost & Sullivan Best Practices Award for: • Business Metro Carrier Ethernet Services for Competitive Strategy and Innovation Leadership Award • VoIP Access and SIP Trunking Product Line Strategy Leadership Award 2015 Vertical Systems Group year-end U.S. Carrier Ethernet Service Market 2015 Vertical Systems Group year-end Global Provider Ethernet Leaderboard 14
  • 15. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 15 The Level 3 Difference Applied knowledge and capabilities solve our customers’ unique problems • Helping customers succeed by leveraging our deep industry experience and tailoring our product solutions to fit Reliable and secure network offering the best performance and delivery solutions • Level 3 optimizes for our customers’ biggest pain points: efficiency, security and reliability Global network, products and operations • Whether it’s a local service or a global network, Level 3 provides a consistent offering and customer experience that reduces operational complexity for our customers
  • 16. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Highlighted Industry Trends & Key Investment Areas
  • 17. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3. Real-Time Communications Moving to IP Voice and other real-time communications moving to IP-based delivery platforms 5. Content Everywhere, Anywhere Rapid rise in the consumption of IP video, often via mobile devices, is driving traffic growth across the network 4. Globalization Continued globalization of value chains for large enterprises and MNCs in search of top-line growth and efficiency 6. Big Data/IoT Rapid increase in the amount of data being captured and stored, with emerging analytic approaches to derive insights 7. Software - Defined Networks Separation of network control from data forwarding – for greater efficiency, adaptability and responsiveness 2. Security Increase in the number, types, sophistication and volume of threats 1. Private-to-Public Networking New enterprise network architectures as companies increasingly look to the right mix for efficiency Key Trends Affecting Enterprises IT Enabled Organization 17
  • 18. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 1 RightScale’s January 2015 State of the Cloud Survey http://www.rightscale.com/press-releases/rightscale-releases-2015-state-of-the-cloud-report • Flexibility: critical applications require maximum security and availability while other applications require the ability to scale • Meet a blend of demands cost- effectively to budget • Leverage existing infrastructure investments, but tap into the ubiquity, economics and speed of the Internet and public cloud • Hybrid Cloud: Enterprises continue to tap into the combined security and reliability of private clouds and the scale and agility of public clouds: • 55% of enterprises surveyed are planning for hybrid clouds.1 • Hybrid WAN: To expand connectivity between sites affordably, customers are combining reliable MPLS with public Internet connectivity. • SDN is helping to automate and manage hybrid environments. • Level 3’s Adaptive Network Control-enabled next-gen Carrier Ethernet platform connects clouds in the hybrid environment while maintaining the on-demand experience of the Cloud • Level 3 offers a wide range of managed Hybrid WAN access options that meet the price/performance requirements of the enterprise applications mix • Major CSPs and carrier-neutral facilities are on-net to Level 3 Trend: Hybrid Environments 18 Achieving the right blend of scalability, flexibility and reliability through Hybrids Customer Need The Trend Level 3’s Differentiation
  • 19. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Maintain control over the end- to-end performance of applications as you migrate them to public cloud • Network Portfolio: The network technology that fits partners’ and customers’ desired architectures • Global Reach: Cloud connections in NA, EMEA, LATAM, and APAC • CSP Integration: Tier 1 global partners, Tier 2 local partners, as well as connectivity, APIs and portals • Data Center Connectivity: 100+ Level 3 data centers, 500+ third party data centers • Ecosystem Momentum: Joint solution and go-to-market strategies with our partners (Microsoft Azure for Office 365, AWS Compliance Bundle, Azure Government) • Revolutionized Connectivity: Self service, on-demand experience with Enhanced Management and Dynamic Connections offerings; innovation testing with our SDN capabilities Investing in Level 3® Cloud Connect Solutions 19 Private, Secure Connectivity to the Cloud PREDICTABLE AND RELIABLE PERFORMANCE Level 3 Cloud Connect Solutions SIMPLIFIED SECURITY DYNAMIC AGILITY GLOBAL CONNECTIVITY When choosing private connectivity, the applications you migrate and optimize to the cloud are within your trusted perimeter SDN lifecycle service orchestration allows you to take control over your user experience and dynamically respond through our Adaptive Network Control Solutions Connect offices around the world to the local cloud and data center resources needed to run mission-critical applications
  • 20. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Award-winning platform, globally consistent product, systems and processes to create the right customer experience One Network One PortfolioOne Systems Suite The Right Customer Experience Investing in Level 3® Ethernet Services 20 Global Ethernet Platform with Adaptive Network Control • SDN lifecycle orchestration of a next-generation resilient packet ring architecture supporting EVPL, EPL, E-Access-based carrier Ethernet services • MEF CE 2.0 certified • 198 markets worldwide, 146 markets in North America, 26 Markets in EMEA • 15-business day on-net installation intervals • 15-business day on-net installation intervals • Up to 99.999% service availability • End-to-end availability and performance guarantees • Adaptive Network Control with automated analytics, alerts and Dynamic Capacity • Turnkey solutions with Level 3SM Site Readiness and Advanced Technical Solutions
  • 21. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. • Increase systems and data security in an environment of quickly escalating threats • Reduce risks to the enterprise: Downtime, brand reputation, legal repercussions, revenue loss • Secure increasingly complex environments: Cloud, hybrid, BYOD, supply chains • Free up the number of IT resources diverted to security concerns • Security threats continue to escalate—Hacktivists, nation states, organized crime increasingly getting into the act • 1,800: New distinct families of viruses detected in the past year1 • DDoS attacks resulting in service level issues, service degradation and outages increased 50x (400Gbps)2 • $3.5M: Global average cost to a company due to data breaches3 • Network-based security approach backed by global threat visibility • Comprehensive ability to predict, detect, alert and respond to attacks • Level 3SM Threat Intelligence Service and security experts • Broad portfolio of security services and 24 x 7 support • The ability to protect your WAN and online presence Trend: Growing Need for Security 21 Borderless networking and online presence demands a fresh security approach Customer Need The Trend Level 3’s Differentiation 1 Source: Fortinet Threat Landscape Report 2014 https://www.fortinet.com/sites/default/files/whitepapers/Threat-Landscape-2014.pdf 2 Source: Arbor’s 10th Annual Worldwide Infrastructure report https://www.arbornetworks.com/arbor-networks-10th-annual-worldwide-infrastructure-security- report-finds-50x-increase-in-ddos-attack-size-in-past-decade 3 Ponemon 2014 Cost of Data Breach Study: Global Analysis
  • 22. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 22 London FrankfurtChicago Los Angeles Dallas New York Washington, DC Traffic is pulled through Level 3’s nine regional scrubbing centers Amsterdam São Paulo 4.5 Tbps of high capacity ingest across globally distributed scrubbing centers reduces latency and improves performance Investing in Level 3® DDoS Mitigation Network Globally
  • 23. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. • In the digitized business model, Enterprises are using IoT to collect real-time data for BI • Enterprises are pushing information and services through connected devices, appliances, vehicles, toys • Devices require efficient means to obtain firmware and content updates in a scalable way • Security needs to evolve to protect the end-users, service providers and manufacturers • IoT is affecting enterprises, consumers and even homes and cities as ‘smart’ goes beyond the smartphone to smart living • The number of IoT things are predicted to increase to 38.5 billion in 20201 • Machine to machine will provide opportunities for consumers to digitally engage with their devices, vehicles, appliances to create a completely new user experience • Level 3 operates a highly scalable global-to-local network, connecting 60+ countries • Scalable global Tier 1 Internet backbone already supports the updates of millions of devices today • Global Content Delivery Network supports digital downloads and firmware updates • Secure content delivery to protect the enterprise’s online presence and brand Trend: Internet of Things 23 IoT will help create smart working and smart living Customer Need The Trend Level 3’s Differentiation 1 Juniper Research press release, July 2015 http://www.juniperresearch.com/press/press-releases/iot-connected-devices-to-triple-to-38-bn-by-2020
  • 24. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. WHY LEVEL 3 CDN? 24 Architected for high capacity, high availability and low latency, the result is rapid and reliable delivery of content to end-users. Investing in Level 3® Content Delivery Network Delivering content on a global scale, quickly, securely and reliably PERFORMANCE Provides protection and encrypted delivery of content over our IP network. We actively monitor for and mitigate security threats to provide a comprehensive, layered strategy to security. SECURITY A truly global CDN solution enables our customers to grow their customer base through the reach and reliability of our high-capacity, high-speed network. SCALE SOLUTIONS • Global footprint across six continents • Directly connected to the Level 3 IP backbone • In-network acquisition of broadcast channels for OTT- Video and Internet TV platforms • Multi-regional Level 3SM Origin Storage platform features high-performance egress and rapid time to first byte • IP Network directly connected to major cloud storage platforms like AWS, Google Cloud Platform and Azure • Trusted and used by the world’s largest media, Internet and entertainment companies today Video Delivery: Delivers a quality experience across a broad range of devices, simply and reliably • Video-On-Demand • Live Events • Live Linear Internet Channels Digital Downloads: Optimally caches objects at the edge, helping you realize substantial origin offload and reduced delivery costs • Media: Music and images • Software: Apps, patches, games and updates • Files: PDFs, spreadsheets and text files
  • 25. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. • Agile, flexible and on-demand network as a service that enables the enterprise journey to the cloud • In a Hybrid Cloud environment the applications need to be connected to a network that echoes a Cloud-like experience • To control the user experience of networking services • Dynamic capacity and connectivity among branch sites and datacenters • Giving the enterprise customer the ability to control their user experience and consume the network as a service • Delivery intervals moving from months to minutes • SDN enablement starts with Ethernet connectivity between the clouds, to enable a Hybrid WAN and move to IP VPN connectivity to the branch • Global SDN offering: Level 3SM Adaptive Network Control • Allows network control to be ad- hoc via the customer portal or API, scheduled, or automated to real-time network demand • Enhanced Management capabilities provide visibility into network and service performance across every segment of the network (not just end-to-end) • You can custom define thresholds and how you want to be alerted Trend: Software-Defined Networking 25 Network as a Service will allow the enterprise to control their user experience Customer Need The Trend Level 3’s Differentiation 1 Juniper Research press release, July 2015 http://www.juniperresearch.com/press/press-releases/iot-connected-devices-to-triple-to-38-bn-by-2020
  • 26. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Allows customers to control their user experience to the Cloud Control CoS priorities across customer’s VPN Level 3SM Enhanced Management Level 3SM Dynamic Capacity Dynamic Connections Dynamic Prioritization Visibility into end-to-end performance with personalized alerting and actions Real-time portal control, scheduled or automated flexing of capacity up to x3 / 6Gbps On-demand connections including to CSPs Alpha trial done with AWS On-Demand, real-time control of QoS Adaptive Network Control Solutions: SDN enables enterprises to dynamically control, scale, create and prioritize network connectivity to improve application performance across their network. Three-Way Adaptive Network Controls: Ad-hoc via portal or API Useful for moving applications into production or supporting new services Automatically Triggered by Enhanced Management Low-touch option to focus on your business Scheduled Supporting regular hybrid workloads such as backups or supporting events Investing in Level 3SM Adaptive Network Control Solutions 26
  • 27. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Vertical Offering and Differentiation
  • 28. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Level 3 solutions can help you: • Ensure uptime for your high-availability, care-critical requirements • Improve outcomes and patient satisfaction with high- performance data sharing • Protect and secure critical applications, proactively • Scale to patients and subscriber call volumes with network-based voice and contact center solutions Customers include: • 8 of the nations 10 largest providers • 8 of the nations 10 largest payers • 8 of the nations 10 largest EHR companies Solutions for Industry Sectors HEALTHCARE Our Offer • Level 3® Smart WAN® • Level 3® Data Center Networking • Level 3SM Unified Communications & Collaboration • Level 3SM BCDR • Level 3SM Managed Security Services • Level 3® Contact Center • Level 3® Cloud Connect Solutions © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 28
  • 29. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Level 3 Delivers: • Solutions catered to Federal, State and Local challenges, with a consultative approach • Contract flexibility: Networx Enterprise, WITS 3, GNS, GSA Schedule 70, various DITCO and Classified programs, additional State and Regional vehicles • Ability to protect your mission-critical data with reliability, performance and security • Ability to improve performance demands while lowering your total cost of ownership Customers include: • Over 200 federal agencies and divisions Solutions for Industry Sectors PUBLIC SECTOR: GOVERNMENT SOLUTIONS Our Offer • Global, private IP network connectivity: IP VPNs, Waves, EPLAN, Ethernet Private Line • Secure, scalable, always-on platform • Level 3SM Managed Security Services • Level 3® Data Center Networking • Level 3SM Unified Communications & Collaboration • Level 3SM BCDR • Cloud Connect Solutions • Level 3® Contact Center • Level 3® Professional Services • Satellite and Teleport services © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 29
  • 30. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Level 3 solutions can help you: • Find the right solutions with our consultative approach and Research & Education expertise • Reach your students and faculty, across town or the globe, with Level 3’s data and CDN services • Scale your solutions to meet tomorrow’s challenges • Secure and protect your student, faculty and proprietary data, reliably • Meet your institution's technological performance needs while lowering your total cost of ownership • Leverage several contract vehicles: GSA Schedule 70, as well as several State and Regional vehicles Solutions for Industry Sectors PUBLIC SECTOR: EDUCATION Our Offer • Level 3® Data Center Networking • Level 3SM Unified Communications & Collaboration • Level 3SM BCDR • Cloud Connect Solutions • Level 3® High Performing Website Solution • Level 3SM Managed Security Services • Global, Private IP network connectivity: IP VPNs, Waves, EPLAN, Ethernet Private Line • Secure, scalable, always-on platform © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 30
  • 31. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Solutions for Industry Sectors MEDIA & ENTERTAINMENT Our Offer • Secure live and on-demand video encoding, storage and delivery • Broadcast distribution direct to home, cable and IPTV platforms worldwide • Satellite and teleport services • Content delivery and world- wide edge caching (CDN) • Single secure platform for video, voice and data traffic from sports venues worldwide • Expert professional services © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 31 Level 3 solutions can help you: • Deliver video any way you want, with platform flexibility for popular broadcast and Internet formats • Successfully deliver compelling content to a demanding audience that expects a quality video experience • Maximize advertising and subscription revenues by reaching the broadest global audience possible Customers include: • 4 of the top 6 U.S. Movie Studios • 7 of the top 10 OTT Video Market Players • 4 of the top 6 Broadcasters • 3 of the 5 Top U.S. Pro-Sports Leagues • 8 of the top 10 Cable MSOs • 6 of the top 10 Social Media players
  • 32. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Solutions for Industry Sectors GLOBAL BANKING AND FINANCE Our Offer • Global, private IP network connectivity: IP VPNs, Waves, EPLAN, Ethernet Private Line • Data centers providing colocation, hosting and disaster recovery • Secure, scalable, always-on platform • Level 3SM Managed Security Services • Level 3® Professional Services © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 32 Level 3 solutions can help you: • Efficiently manage massive growth in financial transactions • Operate close to the many of the world’s leading financial centers • Gain low-cost entry to new markets • Minimize capital outlay while maximizing access to new market opportunities • Authenticate callers and identify potential fraudulent activity via secure call center solutions Customers include: • 8 of the top 10 global banks • 8 of the top 10 U.S. banks
  • 33. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Solutions for Industry Sectors ONLINE GAMING Our Offer • Global fiber IP network • Global Content Delivery Network • Game Server Hosting and Level 3® Site Transformer® • Level 3® Bandwidth Optimizer • Live Events • Comprehensive Security Services © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 33 Level 3 Delivers: • Ultra-fast low-latency network for great gameplay, with room to grow • CDN capability to support massive traffic peaks and flash crowds • Seamless delivery of game launches, tapping into two decades of live online video streaming • Secure delivery of game payloads and mitigation against DDoS attacks • Fast, easy entry to new markets; scale as you grow
  • 34. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Solutions for Industry Sectors MANUFACTURING Our Offer • Enterprise WAN • Level 3SM Managed Security Services • Level 3® Data Center Networking • Level 3® Cloud Connect Solutions • Content Delivery Network © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 34 Level 3 solutions can help you: • Expand market reach • Protect and secure sensitive organization data, proactively • Leverage the power of the cloud and hybrid connectivity to optimize performance across the supply chain • Securely expand into the world of connected devices, taking advantage of technological advances Customers include: • 8 of the world’s 10 largest manufacturers • 8 of the world’s top 10 electronics manufacturers • 8 of the world’s top 10 automotive manufacturers • 8 of the world’s top 10 heavy industry manufacturers
  • 35. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Solutions for Industry Sectors RETAIL Our Offer • Level 3® Smart WAN® • Level 3® Data Center Networking • Level 3SM Adaptive Network Control • Hybrid Networking – Ethernet, IP VPN and IP Solutions • Level 3SM Managed Security Services • Level 3® Cloud Connect Solutions • Level 3® Contact Center • Level 3SM Unified Communications & Collaboration • Level 3SM BCDR • Managed Wi-Fi – Level 3® Professional Services © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 35 Level 3 solutions can help you: • Protect and secure your network and data, proactively • Overhaul legacy IT environments via Level 3 Solutions • Connect privately, securely and efficiently to leading cloud and data center providers to support hybrid architectures • Increase bandwidth and throughput to minimize downtime while supporting digital demands in-store Customers include: • 8 of the top 10 World’s Most Valuable Brands • 8 of the top 10 U.S. Retailers by Revenue • 8 of the top 10 Fastest-Growing U.S. Retailers • 8 of the top 10 Most Popular Online Retailers
  • 36. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.© 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Regional Maps
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  • 40. © 2016 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential.