PRIMUS Awards Qwest Communications Network Agreement for Nationwide Broadband OC-48 Fiber Optic Backbone Ring - Company Business and Marketing

Cambridge Telcom Report, Jan 17, 2000

PRIMUS Telecommunications Group, Incorporated, a facilities-based global telecommunications company offering a portfolio of bundled Internet, data and voice services, has awarded Qwest Communications International, Inc. (NYSE: Q), the broadband Internet communications company, a high-speed capacity agreement on Qwest's nationwide broadband fiber optic backbone and private Internet peering at select sites in the US and overseas.

"With the addition of this state-of-the-art broadband US network from Qwest, we believe PRIMUS ranks among the leading global ISPs in terms of fiber optic bandwidth and network footprint," said K. Paul Singh, Chairman and Chief Executive Officer of PRIMUS. "This new backbone will further enhance the reach and capacity of our global fiber and satellite network and will allow significantly more of our customer traffic to travel on our network. Our ISP operations in North and South America, Europe and Asia-Pacific, as well as our many ISP and multinational customers worldwide, who rely on PRIMUS for global Internet connectivity will benefit from this high-capacity network and the private Internet peering arrangement with Qwest. Beyond our domestic Internet and data initiatives, we intend to purchase additional fiber optic capacity in Europe and in other countries where we operate."

Forming the basis of the US portion of PRIMUS's planned global IP ATM broadband backbone network, PRIMUS agreed to a long-term capacity purchase with Qwest for a nationwide fiber optic cable ring and connecting routes. The ring will connect the cities of Seattle, San Francisco, Los Angeles, San Jose, San Diego, Denver, Dallas, Chicago, Boston, New York, Washington, DC, and Miami. Spanning 12 cities initially and nearly 11,000 route miles of fiber optic cable, PRIMUS can acquire OC-48 capacity (2.48 Gbps) as its US bandwidth requirements expand. While some of the backbone is already in place, the full ring and connecting routes are expected to be delivered by the end of the first quarter of 2000.

The agreement with Qwest will help strengthen PRIMUS's position as a leading provider of next-generation services, such as dedicated Internet access, global content delivery, web and application hosting, voice-over-IP (VoIP), video streaming, and IP-based virtual private networks (VPNs). PRIMUS's intelligent network will have unprecedented capacity, quality of service and restoration capabilities necessary to offer mission-critical e-business services in the Internet Economy.

In addition to the fiber agreements, Qwest and PRIMUS formalized an Internet peering relationship. Concurrently with the implementation of the fiber backbone ring, Qwest and PRIMUS will privately peer at multiple interconnection points around the globe to exchange TCP/IP (Internet and Internet protocol-based) routing information and traffic. PRIMUS expects to form additional Internet peering agreements with other Tier 1 carriers globally.

"The agreements with Qwest allow PRIMUS to stay ahead of the demand curve for our Internet and data services in the US," said Yousef Javadi, Chief Operating Officer of PRIMUS North America. "Customers come to PRIMUS knowing we strive to provide the highest level of service and quality, which is why we partnered with Qwest for a national broadband fiber optic backbone. With PRIMUS focusing on providing Internet and data services to small- and medium-sized enterprises (SMEs), multinational corporate customers and the 'dot com' companies in the largest telecommunications markets around the world, it was important that we complement our global connectivity with sufficient capacity for access throughout the US where the majority of IP traffic originates and terminates."

"We have a great relationship with PRIMUS and we are pleased to have an opportunity to help deliver creative, world-class Internet solutions to customers," said Gregory M. Casey, Senior Vice President of Wholesale Markets for Qwest. "We are excited about the opportunity to support PRIMUS's global IP expansion plans."

Noting Qwest's selection of PRIMUS as an Internet peering partner, Mr. Javadi continued, "We are very pleased that a company of such high standing as Qwest has recognized PRIMUS's status as a major Internet Service Provider. Having a world-class network should be very advantageous for PRIMUS as we target the growing number of companies looking for a reliable and robust on-ramp to the Information Highway."

PRIMUS Telecommunications Group, Incorporated is a full-service, facilities-based global communications company offering a bundled portfolio of international and domestic voice, data, and Internet services. The Company provides services through an extensive global network of owned and leased transmission facilities, including ownership interests in 23 undersea fiber optic cable systems, 19 international gateway and domestic switches, a satellite earth station and a variety of operating relationships that allow the Company to deliver traffic worldwide. Founded in 1994 and based in McLean, VA, PRIMUS serves corporate, small- and medium-sized business, residential and telecommunication carrier customers located in North America, Europe and the Asia-Pacific region. Additional information on PRIMUS can be found on the Company's web site at www.primustel.com .