Level 3 Communications used the acquisitions of Savvis CDN and Servecast earlier this year to make a push into the market for optimized content delivery networks, a segment thus far ruled by companies such as Akamai Technologies and Limelight Networks.
Now, the carrier's strategy is becoming clearer, as it announced it is cutting CDN service prices to closer match the prices it charges for IP transport of content. This was the other shoe waiting to drop after Level 3's acquisitions--it believes it can take over the market by owning both ends of it and undercutting typical CDN pricing strategies. As Web media becomes richer and wireline and wireless networks create broader pipes and better devices for it, this opportunistic move could change the fortunes of many companies in the content ecosystem.
For more:
- Light Reading reports from the CDN front
Related articles:
- Will Level 3's move help make the Internet less "dead and boring"?