For Level 3 Communications (NYSE:LVLT, news, filings), Latin America is hot — hot enough to put more money into its metro networks. Today the company announced the launch of new high-speed metro networks in both Bogota, Colombia (left) and Buenos Aires, Argentina.
The buildout takes their main metro loops in both cities to 40G, with 100G in the wings. That means bigger pipes with which to handle demand at data centers, carrier PoPs, and financial centers. It matches similar high speed metro networks the company already has in Sao Paolo and Rio de Janeiro in Brazil.
Traffic growth in the region has been very strong for several years now, and the resulting opportunities have made up an outsized portion of Level 3’s growth efforts. Colombia has been a particular focus lately, while we haven’t heard as much out of Argentina.
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Categories: Metro fiber
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Will this help get the stock to $21?
Won’t hurt anyway… 🙂
I stand corrected. Will this even be able to keep the share price
above $20?
Check that… make that $19.
Not much downside here though unless valuations take a hit across the sector or they actually start losing EBITDA from here.