TeliaSonera: European Carrier to Enter CDN Space

| About: Telia Company (TLSNF)

With all the carriers and telcos entering the CDN space of late, it's no surprise that European carrier TeliaSonera (OTCPK:TLSNF) plans to enter the CDN market and will probably make the announcement at the MIPTV show in Cannes next month.

TeliaSonera is the number one carrier of IP traffic in Europe and its website says the company provides direct connections to its network for more than 80% of all European broadband service providers. It basically owns the vast majority of eyeballs in Europe. Currently, many of the CDNs who have delivery services in Europe buy from TeliaSonera and it appears as if it now wants to cut out the CDNs and take that business on themselves.

I'm also hearing that the company plans to offer a video content management service across its network and plans to make an acquisition in the market to add this functionality to its offering, although I don't know who it plans to acquire or how close a deal may be.

TeliaSonera will need to do a lot more than just be able to deliver bits if it wants to truly enter the CDN market and if it does plan to add some applications to the network to help manage video assets, it's a similar approach that Level 3 (NASDAQ:LVLT) is taking in the States. The CDN market is going to look very different 24 months from now and while it will take many years for the shift to take place, we're already starting to see a lot of the carriers and telcos lay the ground work for what is to come.

Disclosure: No position