This morning Level 3 Communications (NYSE:LVLT, news, filings) formally launched its CDN services across South and Central America. The Chilean online streaming company Grupo Z has already signed on for the delivery of its diet of music festivals, soccer matches, etc.
Level 3 has been working on its Latin American CDN for some time now, initially with an eye toward helping Netflix to expand. More than a year ago, a few weeks before the Global Crossing deal was announced, they partnered with INTERNEXA to expand their CDN into Venezuela, Colombia, Ecuador, and Peru.
But with the GLBC deal, Level 3 gained its own regional assets, so I wonder what happened with that partnership - and whether INTERNEXA could be an M&A target for them to expand their depth on the northwest part of the continent. With this expansion they're clearly leveraging the Impsat assets, which included data centers, metro, and regional connectivity.
In the meantime, they've been very busy selling the other side of their content business in Latin America, Vyvx. It's a very important market for Level 3, as it offers them high growth possibilities to help kickstart the rest of the company's growth trend while Europe remains hobbled. The Olympics and World Cup events several years from now are adding urgency to infrastructure investment across the region.
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