Kicking off the short week following Labor Day, Level 3 Communications (NYSE:LVLT, news, filings) announced an expanded its multi-year relationship with FOX Sports. FOX has long been one of Vyvx's premier customers, and when Level 3 upgraded its VenueNet offerings earlier this year it is likely that they had FOX in mind from the beginning.
Level 3 will be providing services in support of FOX's sports broadcasts at venues throughout the USA for the NFL season, which has of course just begun. They will be doing the familiar backhaul from the venue to Fox's production HQ, now with uncompressed HD and also JPEG 2000 compression services which FOX will be trialing this year. But they will also be providing services beyond those of Vyvx itself, including high speed internet access directly from the VenueNet+ panel, and integrated voice services as well.
Such synergies between Vyvx and their traditional bandwidth business are clearly something Level 3 has been trying to emphasize for some time now. Are they getting enough traction to finally put up some solid growth numbers in the second half? We shall see.
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