Friday, July 31, 2009

Level 3 comments on CDN and IP

some selected comments from Level 3 about CDN and IP services, from Seeking Alpha transcripts:

>>Pricing pressure for IP and CDN services also negatively affected the Content Markets group.

We also saw continued growth from our content customers in Europe, both from our CDN services and our newly launched European divx video transport products. For the full year, we expect to see year-over-year growth at a more moderate rate than in recent years given the economic pressures within the region.

Turning to pricing and demand, as I mentioned previously fundamental demand continues to grow from many of our data services like IP, CDN, metro transport and wavelength services. However, pricing pressures have increased recently for IP services.

Now we're on record, as having said that we've seen no reason to see any different CDN continues to grow. I might add in Europe in particular it continues to grow. We have seen some additional pricing pressure, I think from fair play CDN providers who might be trying to hold on to market share. But we think in the longer term, what we have said repeatedly is what we'll continue to say is going to become a large object, going to become a carrier business, going to become the bread and butter of providing IP and other forms of IP optical services to a broad range of the market

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