EXHIBIT 99.3
November 8, 2000 Press Release
[McLeodUSA logo] [MCLD: A Nasdaq-100
Company logo]
McLeodUSA Incorporated
McLeodUSA Technology Park
6400 C Street SW, PO Box 3177
Cedar Rapids, IA 52406-3177
Investor Contact: Bryce E. Nemitz
Press Contact: Bruce A. Tiemann
mcleodusa_ir@mcleodusa.com
Phone: (319) 790-7800
FAX: (319) 790-7767
FOR IMMEDIATE RELEASE
McLeodUSA Unveils "Next Generation" Network
Enhanced 31,000-Mile Network Based on Mesh Switch Platform
Scheduled to be In Service by Year-End 2001
CEDAR RAPIDS, Iowa -- Nov. 8, 2000 -- McLeodUSA Incorporated (NASDAQ:MCLD), one
of the nation's leading local telecommunications providers, today announced that
it plans to have one of the first networks in the nation to employ a mesh switch
platform in order to fully address the fundamental needs of a new generation of
network customers.
The "next generation" network, stretching across more than 31,000 route miles of
fiber-optic capacity available to McLeodUSA, initially will terminate traffic
via physical points of presence in more than 50 cities across the continental
United States. Selected routes will be coming in to service in 2001, with full
operability planned over the next two years.
The network provides an ideal complement to the Company's 25-state regional
footprint for customers seeking to originate and terminate data traffic on a
national broadband basis.
The McLeodUSA next generation network initially will support a flexible family
of enhanced products featuring rapid provisioning times and competitive price
structures. It also will serve fixed bandwidth services more efficiently than
either IP or ATM, while supporting both of these technologies as overlay
networks. In addition, the network provides a solid foundation for next-
generation softswitch architecture.
Broadband and ultra-broadband mesh switches will comprise key architectural
components of the network, along with dense wavelength division multiplexing
line systems, aggregation multiplexors and a robust IT systems infrastructure.
Final vendor selections are expected to occur by year-end 2000.
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The network is the first of its kind in that it is both less complex and more
efficient than the network ring topology deployed by other carriers. Ring
networks introduce layers of complexity into the provisioning process, often
leading to service gridlock for customers while stranding expensive fiber assets
for carriers.
"Today's sophisticated customers are tired of waiting for providers who are so
preoccupied with exotic technologies that they've forgotten the basics of
customer service," said Roy Wilkens, McLeodUSA Data Network Group President.
"We've gathered a specialized team at McLeodUSA with a long history of
understanding customer requirements for control, scalability and
interoperability," Wilkens said. "We are designing products and systems to meet
those needs quickly and economically. In a market so easily distracted by
hyperbole, customers are the first to understand that providers with exceptional
focus on the fundamentals of their business needs are the true innovators."
Web-based tools will allow McLeodUSA customers to make real-time choices
concerning their bandwidth and circuit requirements, the type of connectivity
that meets their needs, levels of service quality and choice of billing options.
Customers of the McLeodUSA next generation network are expected to include
telecommunications carriers, Internet service providers, application service
providers, Web hosting companies, Fortune 500 companies and other companies that
use long-haul network capacity as a core component of their business.
McLeodUSA President and Chief Operating Officer Steve Gray said the Company's
acquisition of Splitrock Services, Inc., earlier this year, as well as its
pending acquisition of CapRock Communications, makes for an impressive network
and places the Company in an ideal position to launch the new service.
In its local markets, the Company is completing development of a family of
advanced data products including DSL, VPN, frame relay, business Internet,
private line and Web hosting for business customers in selected areas of the
nation by the end of 2001.
"In terms of our core business, our fundamentals have never been stronger," Gray
said. "This includes lines sold, net lines installed and our continued ability
to implement the systems to support our customers, resulting in one of the
lowest customer churn rates in the industry. We have a funded business plan and
one of the most experienced management teams in the industry. We know what to
focus on - and that is developing advanced but functional products to meet the
real needs of our customers."
About McLeodUSA
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McLeodUSA provides selected telecommunications services to customers nationwide.
Integrated communications including local services are currently available in
several Midwest and Rocky Mountain states; long distance and advanced data
services are available in all 50 states. McLeodUSA is a facilities-based
telecommunications provider with 375 ATM switches, 37 voice switches, nearly
905,000 local lines, and 9,500 employees. The Company recently expanded its
marketplace for advanced data and Internet services to all 50 states through the
acquisition of Splitrock Services, Inc. The network acquired in the Splitrock
transaction is capable of transmitting integrated next-
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generation data, video and voice services, reaching 800 cities and 90 percent of
the U.S. population. In the next 12 months, McLeodUSA plans to distribute 30
million directories in 26 states, serving a population of 51 million. McLeodUSA
Incorporated is a Nasdaq-100 company traded under the symbol "MCLD." The
Company's Web site is available at www.mcleodusa.com.
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Some of the statements contained in this press release discuss future
expectations, contain projections of results of operations or financial
condition or state other forward-looking information. Those statements are
subject to known and unknown risks, uncertainties and other factors that could
cause the actual results to differ materially from those contemplated by the
statements. The "forward-looking" information is based on various factors and
was derived using numerous assumptions. In some cases, you can identify these
so-called forward-looking statements by words like "may," "will," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"projects," "potential," or "continue" or the negative of those words and other
comparable words. You should be aware that those statements only reflect the
predictions of McLeodUSA. Actual events or results may differ substantially.
Important factors that could cause actual events or results of McLeodUSA to be
materially different from the forward-looking statements include availability of
financing and regulatory approvals, the number of potential customers in a
target market, the existence of strategic alliances or relationships,
technological, regulatory or other developments in the industry, changes in the
competitive climate in which McLeodUSA operates and the emergence of future
opportunities. These and other applicable risks are summarized under the caption
"Risk Factors" in the McLeodUSA Annual Report on Form 10-K for the fiscal year
ended December 31, 1999, which is filed with the Securities and Exchange
Commission.
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