IP-based communications provider Level 3 Communications (News - Alert) has expanded its network capacity and services in Mexico to meet the growing demands from its enterprise and carrier customers doing business in Mexico.

Level 3 has introduced new services including EtherSphere Wide Area Network (WAN) transport services, Internet Protocol Virtual Private Network (IP VPN), Wavelength Services, Private Line, Dedicated Internet Access, High Speed IP service, and Ethernet local access service, all of which will be offered through its locally licensed affiliate in Mexico.

Through these enhancements, the IP communications provider is eying the highly prospective Mexican market that is expected to grow at a compound annual growth rate (CAGR) of 15.8 percent between 2010 and 2015.

"This is good news for both multinational corporations and telecom service providers that do business in Mexico and are looking for a more direct route to Latin America," said Hector Alonso, Level 3's regional president Latin America, in a statement.

 "Mexico represents the second largest market in Latin America and serves as a gateway to the region,” Alonso added. “With this expansion, Level 3 continues to help businesses gain network efficiencies, and enables global solutions for data and transport services."

The communications provider boasts a network infrastructure in Mexico that connects the cities of Guadalajara, Monterrey, Mexico City and Mazatlan. The system is capable of providing Terabits of capacity to transport voice, data and multimedia services located in these areas.

Enterprises in Mexico are migrating from traditional services to IP-Multiprotocol Label Switching (MPLS), seeking business benefits such as improved network performance, according to Elia San Miguel, principal research analyst for Latin America at Gartner (News - Alert).

The growth in business Internet access revenue will set the stage for more sophisticated communications-enabled business processes, including Ethernet, Gigabit Internet and WAN connectivity services that will provider for better connectivity with branch offices and telecommuters in the region.

According to Miguel, Mexican companies are currently showing a greater interest in managed services. Also, the shift to Voice over Internet Protocol (VoIP) is beginning to be integrated into enterprise plans.

Recently, Level 3 Communications announced it has expanded its services within Germany. As part of the expansion, the company will offer its entire portfolio of enterprise services, including VPN, DIA, website accelerator services, managed DDoS protection and other services to customers throughout the country.