GlobeNet eyes Colombian potential
The completed extension of GlobeNet’s subsea network into Colombia is expected to significantly drive telecoms and broader economic growth in the country, according to the company’s president.
GlobeNet’s extension runs from Miami in Florida, US, to the Atlantic coast of Colombia and is a direct extension from its existing subsea cable system connecting the US, Venezuela, Brazil and Bermuda.
The company already has an anchor tenant secured on the route; UNE EPM Telecommunicaciones, which was the first company in South America to launch 4G/LTE services.
“Latin America in general is experiencing sustained demand and growth,” Erick Contag, president and COO at GlobeNet, told Capacity.
Contag explained that Colombia has a legal, judicial and regulatory framework in place which is attractive to investors, and has also recently experienced a significant growth in GDP, creating a middle class with disposable income.
“If you look closely at the demand, you will see that the proliferation of mobile devices is an important driver of growth, but the bandwidth-peruser itself is also growing,” Contag commented.
Perhaps more important, though, are several recent projects and initiatives from the Colombian government, designed to grow internet presence in the country across 700 municipalities. The knock-on effect of this is the reduction of the digital divide and significant improvements to education and healthcare services in the region.
Several other carriers in the region have also noticed the potential in Colombia. América Móvil, for example, is expected to begin commercial operations on a subsea cable connecting Brazil, Colombia and a number of other destinations, at the end of 2014.
“We believe they will use this infrastructure mainly to serve their own in-country operations,” said Contag.
GlobeNet’s route, however, will complement its larger ring-route in the region, and Contag expects both existing and future customers to benefit immediately from the extension.
The company expects the bulk of demand to be south-north bound, to access key internet services and content that resides or transits through the US.