Brazil’s economy last year grew 7.5%, a pace not seen in 25 years, according toEnglish.news.cn. And even amid the global economic turmoil we’re seeing this year, the U.S. Department of State predicts Brazil’s economy will grow 3.5%. Most countries would be quite pleased with that for 2011.
Clearly, Brazil is booming, as is much of Latin America. The trend can also be seen in its Internet traffic. The Cisco Visual Networking Index, which tracks growth in IP traffic around the globe, predicts Latin America will experience a compound annual growth rate in Internet traffic of 48% from 2010 to 2015. That’s second only to the Middle East/Africa rate of 52%, and far higher than Western Europe (32%), Japan (27%) or North America (26%).
Latin America is about to get a significant boost in its ability to handle all that traffic as NTTAmerica and NTT do Brasil (both wholly owned subsidiaries of NTT Communications, the sponsor of this site) have announced the opening of a new point of presence
in Sao Paulo, Brazil.
NTT America already does business in Brazil and Latin America, but only from the U.S.; companies needed to find their own connection to an NTT America PoP in order to get service, says David Berrios, Director of Latin America business development for NTT America and project leader for the PoP. Now, NTT America will be able to offer ISPs, regional carriers, content providers and multi-national corporations access to its Tier 1 Internet backbone directly from Sao Paulo.
“It really is a game-changer for the region,” Berrios says, noting NTT Com is only the second Tier 1 PoP in Latin America, joining one owned by Global Crossing. “This allows us to extend our global Tier 1 backbone to one of the only regions of the world where we did not have a presence and service those companies that do not have infrastructure back to the U.S.”
Initially, Berrios expects the most interest will come from regional and local carriers in Latin America that want to connect to NTT’s Tier 1 backbone. But the PoP will be equally valuable for U.S. and European companies that want to launch services in Latin America or connect to business offices there.
While the new PoP won’t necessarily mean an onslaught of new types of services, it will mean far better quality, he says. “We bring to the region something that is not there right now: global Tier 1 service at very high quality. Reliability traditionally hasn’t been great in that market,” Berrios says. “We will bring faster and better access to those companies that buy service from us.”
We bring to the region something that is not there right now: global Tier 1 service at very high quality. Reliability traditionally hasn’t been great in that market,
And Sao Paulo, the largest city in Brazil, is only a starting point for NTT America in the region. “The long-term plan for us is definitely not just Sao Paulo,” Berrios says. “It will be the first of a multi-PoP regional strategy.” It makes sense; the company’s name is NTT “America,” after all, not “North America.”