Level 3 and McLeodUSA End '99 Dark Fiber Lease Agreement

Level 3 Communications and McLeodUSA agreed to terminate a dark fiber contract the two companies signed in 1999.Under the original 20-year agreement, McLeodUSA leased a nationwide dark fiber backbone from Level 3 comprising between eight and 36 fibers across most of Level 3's North American network infrastructure.



McLeodUSA will transfer the fibers back to Level 3 in exchange for a cash payment and other consideration. In addition, the companies have entered into an agreement under which McLeodUSA will provide network services to Level 3 at discounted rates. Certain fibers along a small number of network routes will be retained by McLeodUSA to fulfill pending and existing IRU agreements with other companies.



Level 3 said it expects to recognize approximately $100 million in non-cash termination revenue in the fourth quarter of 2004 because of this transaction. http://www.level3.com/