FiberTel, IMPSAT ink 7M Contract for intercontinental link

By Hector D. Calabia

IDG News Service, Buenos Aires Bureau

BUENOS AIRES – 04-26-2001

FiberTel SA, a broadband cable modem ISP located in Buenos Aires, and the wholesale data carrier Impsat Fiber Networks Inc. have just signed a long-term agreement for high-speed access to the US Internet backbone, according to a press statement released by both companies this week. The contract provides for 60 months of service, at a total expense of US$7 million, according to the press release.

 

Impsat will provide an SMT1 (155M bps) connection to the US backbone. The link will use the installed Impsat submarine cable that goes from Buenos Aires to Miami. This access to the US backbone will result in a more efficient Internet traffic routing, giving Fibertel Internet subscribers practically the same navigation speed as if they were located in the US.

 

Through this agreement, FiberTel becomes the first Argentine ISP to be served by an exclusive broadband STM1 international connection.  Ariel Garbaz [[CQ], a well known telecommunications analyst, said that the deal represents a "major leap" in Argentina-US Internet communications, as previous to the Argentine full telecommunications deregulation (effected by the end of 2000) the only authorized international data carrier was Telintar SA, owned by the two major incumbent telephone companies operating in Argentina (Telecom Argentina SA and Telefónica de Argentina SA). The carrier had a rather limited throughput capacity.

 

According to the statement, the agreement opens a time of cooperation for Impsat -- a large international data and video carrier -- and FiberTel. Both companies will develop "swapping agreements" for the use of infrastructure facilities and reciprocal last mile access in their areas of coverage. For instance, Impsat will provide a redundant "last mile" access to Fibertel's Points of Presence (PoPs) in the Buenos Aires area and Fibertel will facilitate the delivery of Impsat's services to small and medium size businesses. Impsat is mostly devoted to corporate subscribers at present.

 

FiberTel is a fully owned subsidiary of the CableVisión SA video cable operator. CableVisión is the largest cable television service provider in Argentina. By September 30, 2000, their cable television system served approximately 1.45 million subscribers, resulting in a national market share of approximately 28 per cent. FiberTel offers cable modem access to its subscribers in the Greater Buenos Aires area, and has recently announced that it will serve as a wholesaler of broadband Internet access for other ISPs within its area of coverage.

 

Impsat Fiber Networks Inc. (NASDAQ:IMPT) is a provider of integrated data, Internet and voice broadband telecommunication services for Latin America. The company has operations in the U.S., Argentina, Colombia, Venezuela, Ecuador, México, Brazil, Chile and Perú.

 

Impsat Fiber Networks Inc. in Buenos Aires can be contacted at +54 11 5170-3700, or at http://www.impsat.com. FiberTel SA can be contacted at +54 11 4778-8718 or at http://www.fibertel.com.ar

 

This article was originally published by the IDG World Network of magazines and Web Sites
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