AOL Using Level 3 As VoIP Network Provider

Not only is America Online taking up Voice-over Internet Protocol, but they have signed a multiyear deal with Level 3 Communications for the latter to provide the underlying network for the new AOL VoIP services, Level 3 announced at the Voice on the Net (VON) Conference March 8.

"We have a long-standing relationship with America Online," said Level 3 chief executive Jim Crowe in an announcement, "built on a firm foundation of partnership between the companies in which Level 3 has been one of AOL’s key suppliers of network services for the past several years. We’re very pleased that AOL selected Level 3 as its network partner for what promises to be an innovative Internet phone service for this rapidly emerging market."

AOL said they were pleased with the deal as well, though chief executive Jonathan Miller offered no pricing details when speaking of the coming service himself at the VON Conference. But lower network costs typically result in Internet telephone services selling unlimited calling for far less per month than traditional telephone services.

"As a major player and pioneer in IP services, including Voice-over-IP, Level 3 Communications has been a great partner for AOL as we get ready to launch a new generation of Internet phone services to both our members and our partners in the cable and cellular industries," said AOL chief technology officer and president of AOL Digital John McKinley at the announcement.

"Level 3 has provided us with the VoIP infrastructure we need to offer a fully-featured service with a solid nationwide footprint, E-911 capability and Local Number Portability," he added.

The AOL service uses a customized version of Level 3’s consumer-oriented VoIP services, Level 3 said, a portfolio that lets customers cut or duck some of the standard upfront investments usually required to build and manage Internet telephony services.

"Level 3’s consumer-oriented VoIP services are based on tested, reliable technology that is already being used to terminate more than 30 billion minutes of data and voice calls per month," boasted senior vice president of consumer voice services Shirish Lal. "That network offers the broadest national coverage, now reaching approximately 93 percent of the U.S. population. (We have) the scale, experience and network coverage to deliver fully-featured phone services that deliver the safety of E-911, quality, and reliability that end users demand."