WORLDCOM REPORTS 22% REVENUE GROWTH IN DATA AND INTERNET SERVICES
WorldCom reported Q3 revenues of $5.5 billion, a 12% increase from the same period in 2000 (the figures do not include MCI, which reports its results separately).  Results were driven by 22% year-over-year revenue growth in data and Internet services.  Data and Internet services accounted for approximately $3.1 billion or 56% of WorldCom group’s revenues, up from 52% of revenues in the third quarter of 2000.  Business voice revenues declined 6% from the year-ago period, representing 30% of WorldCom group’s revenues compared to 35% in Q3 2000.  International services revenues increased 19% from the year-ago period to $761 million. http://www.worldcom.com/about_the_company/press_releases/display.phtml?cr/20011025-2
WorldCom, October 25, 2001

• In a conference call, WorldCom said its data revenues were driven by customers continuing to upgrade the size of their circuits as well as adding ATM and Frame Relay nodes to existing networks.  For IP services, the carrier continues to see strong demand for high-speed Internet access from existing customers.
• During Q3, WorldCom’s capital expenditures totaled $1.7 billion, including $560 million for data and long haul improvements for additional OC-192 rings and more DWDM.  The data network added 26 more data switches.  Local expenditures were $535 million and were focused on technology that significantly reduces the costs of adding circuits to the network as well as on local fiber builds.  Internet related CAPEX was $361 million, including spending for additional OC-192 metro capacity and MPLS upgrades, which are expected to lead to a lower cost structure going forward.  Internationally, WorldCom added 42 data switches to its network, giving it a total of 240 data switches outside the US.  The CAPEX forecast for Q4 is about $1.6 billion and CAPEX for all of 2002 is expected to be $5.5 billion, down from $7.5-$8.0 billion for all of 2001.  WorldCom’s capital expenditures have been declining since their all time peak in Q3 2000 due to completion of data centers and new fiber routes.

LEVEL 3 COMPLETES ITS FIBER NETWORK, TRIMS FOR FUTURE GROWTH
Level 3 Communications reported Q3 revenue of $319 million, a 25% increase over the same period last year.  The net loss for the quarter was $437 million, or $1.17 per share.  Citing the difficult economic conditions, Level 3 said disconnects from troubled customers offset growth from its top-tier target customers.  Capital expenditures were $370 million for the quarter, declining from $772 million during the second quarter and $1.4 billion for the same period last year.  This reduction in capital expenditures reflects the completion of the network and the company's previously announced cost management initiatives.  The downward trend in capital expenditures will accelerate in 2002 as the company moves to a customer-demand driven expenditure mode.  As a result, capital expenditures for 2001 are expected to be $2.7 billion versus a previously announced amount of $3.0 billion.  The company has lit all 15,889 miles of its North American intercity network and migrated 98% of traffic to its own facilities.  In addition, Level 3 will layoff 750 employees out of a workforce of 4,500.  http://www.level3.com/us/news/newsreleases/1,1345,2001Oct25-5659,00.html
Level 3 Communications, October 25, 2001

• Level 3’s Service Revenue breakdown for Q3:

50% from carriers and PTTs
30% from ISPs
14% from content providers
3% from bandwidth traders

• Level 3’s Q3 Revenues by Service category:

Transport services accounted for 44%
Softswitching services were 32%
IP colocation services were 24%

• In a conference call, Level 3 said that it continues to see traffic growth.  Modem minutes were up 13% during the quarter and IP traffic rose 40%.  During Q3, Level 3 also acquired key network assets from Viatel at a very low price.  The company will look to acquire additional distressed carriers at low rates if their assets and customer base make sense for Level 3.

FRANCE TELECOM REPORTS 270,000 DSL USERS
As of September 30, France Telecom’s Wanadoo Internet service had 5.3 million active customers, up 161% over the same period last year (up 60% excluding Freeserve in the UK).  The number of ADSL customers, including Wanadoo ADSL customers, increased six-fold in one year, rising from 41,000 at September 30, 2000 to 257,000 at September 30, 2001.  http://www.francetelecom.com/vanglais/whats_in_the_news/f_news.html
France Telecom, October 25, 2001

IBASIS CARRIES 360 MILLION VOIP MINUTES IN Q3
During Q3, iBasis carried more than 360 million minutes of international voice traffic, putting it on an annualized run rate of more than 1.2 billion minutes – this would rank the company as one of the world's twenty largest carriers of international traffic.  Minutes of usage were up 114% compared with the same period last year and a 6.6% sequential increase over the 337.6 million minutes in Q2 2001.  The company added 8 POPs to its IP network in Q3, giving it a total of 589 PoPs in 83 countries at quarter's end.  Tier One carriers generated 54% of wholesale telecommunications revenue and 55% of all wholesale traffic routed over the iBasis Network.  Overseas-originated calls accounted for 34% of wholesale telecommunications revenue and 28% of wholesale traffic.  Average revenue per minute decreased from 9.01 cents per minute in Q2 2001 to 7.69 cents per minute in Q3 2001. Much of the decrease in revenue per minute is related to lower rates and, to a lesser degree, by changes in traffic mix.  Gross margins decreased to 14.9% of revenue, or $4.98 million during the quarter, compared with 16.0% or $5.48 million, in Q2.  http://www.ibasis.com/ 
iBasis, October 25, 2001

• iBasis operates the world's largest international Cisco Powered Network for Internet Telephony.