One can often gauge just what messages a company will focus on during its earnings report by looking at the press releases that land just beforehand. For Level 3 Communications (NYSE:LVLT, news, filings), which reports on Wednesday, the week kicked off with two familiar themes in the form of announcements covering an expanded content services deal in the US and a new, high profile, multinational IP VPN customer in Latin America.
Major League Baseball Advanced Media has tapped Level 3 for additional infrastructure to bolster the content delivery capabilities of MLB.TV, MLB.com, and its other media properties. They’re moving into Level 3’s Omaha, Nebraska facility in a multi-year data center deal, boosting their archival, backhaul, and streaming capabilities in conjunction with the CDN services they have already been using. Level 3 just opened this enterprise-grade Omaha facility last summer.
And Air France has chosen Level 3’s IP VPN services to hook up its call center down in Santiago, Chile with the rest of its worldwide network assets. Level 3 will be taking over the pipes for the Latin American network configuration established by a different vendor, helping to improve response times across the region for both Air France and KLM customers at a reduced cost. Using its Latin American assets to boost its position with large multinational network buyers has always made sense, both for Level 3 and for Global Crossing before it.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!
Categories: Content Distribution · Internet Backbones
Any idea how much a contract like the Air France KLM one is worth revenue wise? Looking at air france website and it does not look like air france/KLM has a huge presence in South America so I am guessing that this is not a huge call center but that is just a guess.
I would be surprised if it is more than a $10-15K MRC deal.