Level 3 Beefs Up CDN Network

Level 3 Communications Inc. has been talking about its content delivery network (CDN) for years, and the investment advisors over at Motley Fool say this is an area where Level 3, anxious to breathe new life into its stagnant data pipeline operations,” must focus.

The Broomfield, Colo., operator is doing just that.

On Tuesday, Level 3 said it has added 1.65Tbps to its global capacity, and beefed up its locations with two cities in Canada and three in Europe Montreal, Toronto, Brussels, Hamburg and Munich, respectively. Level 3 completed most of the work during the third quarter.

This is just the kind of investment the Motley Fool wants to see.

The faster Level 3 can become a content delivery powerhouse, the better,” Motley Fools Anders Bylund wrote on Oct. 29. Being one of three CDN providers to serve up movie streams for digital movie maven Netflix is a good start, but Level 3 clearly can, wants to, and will do more.”

To be sure, Level 3 long has provisioned CDN services for entities including Major League Baseball Advanced Media and the Disney group. For Disney, Level 3 oversees the delivery of major online events as well as video on-demand,” said Bud Albers, CTO of Disney Connected and Advanced Technologies, in a prepared statement.

Level 3 said much of the higher demand its accommodating comes from content streamed over Adobe, Apple and Microsoft platforms.

“We have seen a significant increase in demand for our CDN services this year,” said Mark Taylor, Level 3s vice president of content and media. With this rate of growth and with customer needs in mind, Level 3 will continue to develop CDN capabilities, add capacity and improve performance.”

Level 3s CDN business competes against pure-play CDN companies Akamai Technologies and Limelight Networks. Level 3 bought SAVVIS several years ago to enter the CDN market, which has proved a smart move as streaming video mounts a formidable opposition to pay-TV alternatives.

Shares of Level 3 closed at 91 cents on Tuesday, down 1.45 percent.

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