Level 3 Communications (NYSE:LVLT, news, filings) won an expanded relationship with CNN, under which the company has installed its Managed Video Network Services (MVNS) in the network's global headquarters in Atlanta. The deal goes beyond the long term video backhaul relationship CNN had with Vyvx, and now includes substantial raw bandwidth as well. CNN's Atlanta and NYC centers will have 10G connectivity, and there will be 2.5Gbps wavelengths connecting the network's data centers and supporting 'business continuity' which I presume means backups for disaster recovery etc.
Both point-to-point and point-to-multipoint broadcast video are supported, with dynamic bandwidth allocation and prioritization offering maximum flexibility for the broadcaster If there's anyone that needs a heavy duty managed video solution, it's CNN. The 24 hour news cycle of the modern era has them producing, processing, and distributing what must be a ludicrously large number of video clips on a daily basis. That the world of television is now seeing the convergence of bits and video at such scales can only be a good thing for all backbone providers. Certainly it seems to be the start of Level 3 was dreaming of a decade ago, arriving at long last.
It's a very nice followup to the expanded deal with Fox earlier this week and offers some more support for the hope of a Level 3 revenue surge in the second half. We could still use some more of these though to make up some lost ground!
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