Level 3 Communications (NYSE:LVLT, news, filings) is taking its content business deeper into South America. Today they announced their first live Vyvx broadcast in Brazil. And since this is Brazil, it had to be soccer driving things. Indeed, it was two professional women's soccer matches transmitted in HD from Tokyo to Sao Paolo, with active monitoring for 6 hours.
Level 3's announcement highlights two of their main story lines right now: the Global Crossing integration and the Latin American growth potential. Global Crossing had both fiber assets there as well as the Genesis Solutions broadcast division, which they had themselves expanded into the region the prior winter. Level 3 is clearly moving quickly to integrate those capabilities into its Vyvx business, which may help them generate some of those revenue synergies.
Everyone is positioning themselves for bandwidth demand in Latin America, and especially Brazil right now. The 2014 FIFA World Cup and 2016 Summer Olympics will both put the infrastructure in the region to the test, including whichever of those four or more new cables actually get built in time. But Level 3 has quite a head start, with the existing SAC, MAC, and PAC systems and further upgrade potential (100G?) and now a foothold in the broadcasting business there.
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