Level 3 Communications (NYSE: LVLT) on Tuesday began offering its Content Delivery Services (CDN) services to the Latin American market.
By offering these services, the service provider said that it will be able to better address businesses, government institutions and multimedia content provider's needs to deliver content both inside and outside Latin America.
Dan Rayburn, principal analyst at Frost & Sullivan, said that a number of the region's telcos efforts to expand their respective wireline and mobile-based broadband networks will drive the need for more CDN services.
"Applications such as over-the-top video and mobile video are still in the early stage of adoption, which are likely to substantially increase in usage as broadband infrastructure across the continent improves and the transactional mechanisms to purchase content-based services are more widely implemented," he said.
One of the other near-term opportunities that Level 3 will be able to tap into on the media side will be the 2014 FIFA World Cup to be held in Brazil. Broadcasters and related websites that are covering the games will need more robust CDN infrastructure to ensure they can effectively provide access to users via traditional broadcast and OTT-based online video mechanisms.
Already, Level 3's CDN message has gained the attention of Grupo Z, a Chile-based provider of online audio and video broadcast streaming. The company is using the service provider's CDN network to deliver a number of its major events, including music festivals, soccer matches and peak demand events to broadcasters throughout Latin America.
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