On Monday, Orange Business Services (Paris, France) announced it will increase the capacity of its Latin American network by ten times due to growing demand from its multinational enterprise customers. According to the company, implementation will begin in October 2011, covering Brazil and Chile, followed by Argentina, Peru and Panama. The network, which now has a capacity of around 620 Mbps (megabits per second), will increase to 10 Gbps (Gigabits per second) in an expansion that has several phases, according to Orange.
The upgraded network will accommodate customers’ needs for expanding high-speed broadband services, including MPLS (IP VPN and Business VPN), International Ethernet Link and video services, such as Telepresence.
“We see growing demand for voice, video and data services from companies particularly in the mining, consumer products and banking industries. There is expansion in both Latin American and non-Latin American companies in the region, which has been pushed by economic growth, as well as strong growth in applications for data but also voice and video. Telepresence and other video conferencing solutions are becoming more and more important for our clients,” says Mauro Cruzeiro, vice president heading Orange Business Services in Latin America. “Businesses of all sizes are becoming increasingly dependent on Ethernet to provide a high-bandwidth, multipoint network connecting geographically dispersed locations.”
The new network ring will connect Latin America to the East Coast of the United States via Brazil and to the West Coast of the United States via Chile (through Peru and Panama), according to Orange. The upgrade aims to enhance quality of service for customers with improved latency to the West Coast, while also supporting the growing capacity requirements from Asia-Pacific.
Latin America is a key growth market for Orange Business Services, according to the company. As part of the company’s conquests 2015 growth strategy, Orange Business Services aims to generate revenues of $1.4 billion in emerging markets in 2015.
According to Cruzeiro, the recent increase of bandwidth demands in emerging markets, such as Latin America, can be attributed to a variety of different factors.
“The trends in the global economy, especially in emerging markets, are driving growth and new demands - mobility, sustainability and the role of IT and telecoms services, the arrival of Generation Y in companies and what it revolutionizes, collaboration tools and social networks, as well as cloud computing and M2M,” said Cruzeiro. “The enterprise market is evolving and this is transforming the way companies do business.”
These companies are the main force driving the demand for a larger network capacity. According to Cruzeiro, networks have become essential to the success of these companies, therefore the success of the countries.
“In this environment, networks have become what coal was to the steam engine: the essential fuel of a successful business. Without networks, today’s economies would cease to operate: financial services, transport networks, public utilities, would simply cease to exist. And it is network quality of service that is the basis on which value is created or destroyed.”