The new PoP becomes part of NTT America's operations and will be controlled by its Network Operations Center, with NTT Do Brasil handling local sales and support activities, says Michael Wheeler, vice president of NTT America’s Global IP Network business unit.
A presence in Sao Paolo helps NTT support both the growing number of Japanese multinationals doing business in Brazil and also U.S.-based multinationals and competitive carriers that are developing operations in South America and looking for another potential place from which to offer service, Wheeler says. "This is an incredibly fast-growing region," he adds. (See Brazil Gets Serious About Broadband and Mobile Data Drives Record Growth in Brazil .)
Brazil is preparing to host the FIFA World Cup in 2014 and the 2016 Olympics and is experiencing general economic growth, making it an attractive market for communications service providers. Customers are also clamoring to get into other South American markets, including Argentina, Chile, Columbia and Peru, says Wheeler.
NTT expects to add other cities in South America to its global IP network, including Rio de Janiero, Santiago and Buenos Aires.
Why this matters
NTT's move is acknowledgment of the growing importance of the Brazilian market and the Latin American region in general, while, for NTT, global economic pressures and Japan's post-tsunami woes cast the economic growth of Brazil and the rest of South America in an even brighter light.
Check out other Latin American expansions:
- Terremark Expands Brazilian Data Center
- Orange Biz Increases Network Capacity in Latin America
- Telefonica Reports H1
- Arris Caters to Brazil
- Ericsson Expands Brazilian Deal
- Euronews: T Italia Gets Busy in Brazil
— Carol Wilson, Chief Editor, Events, Light Reading