Beaten-down telecom stock Lumen Technologies (LUMN 12.69%) wasn't looking so battered on Wednesday. In fact, the shares jumped more than 12% higher in price on news that a sports media company would be harnessing its technology to broadcast live games. Lumen's leap was far more pronounced than the S&P 500 index's 0.2% increase on that Hump Day trading session.
Scoring a touchdown with a college sports broadcaster
Wednesday morning, Lumen announced that it and Pac-12 Enterprises, the broadcasting unit of the Pac-12 college football conference, are teaming up this season. The broadcaster will use Lumen's network-as-a-service (NaaS) technology to deliver the conference's games to viewers of the highly competitive league.
Image source: Getty Images.
Lumen said this is to begin as soon as this Saturday, with the Washington State versus Idaho contest.
The company did not supply any financial particulars of its new arrangement with Pac-12 Enterprises, nor did it speculate how it might affect fundamentals like revenue. Regardless, Lumen's success in roping in a high-profile corporate customer with demanding connectivity needs is a clear win for the company and quite the encouraging morale booster.
Assuming the tie-up is mutually beneficial, we can expect it to generate new business for Lumen for clients with similar data transmission requirements.
Lumen goes live
At the very least, we can expect media companiess that broadcast content like live athletics to consider partnering with Lumen.
In the press release touting the Pac-12 Enterprises deal, Lumen quoted its CTO Dave Ward as saying that its client "can instantly dial up bandwidth -- delivering the speed, reliability, and control that modern productions demand."
