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Latin America update: Sprint beefs up IP network in Venezuela, Telecom Italia to sell 18% stake in Brasil Telecom

Latin America continues to be a hotbed for service providers as the need for traffic flow into and out of the region mounts. Growing demand has led providers to deploy wireline and wireless network infrastructure in the region. And today, Sprint revealed that it has turned up an IP network to serve Chile and Venezuela.

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“We currently have POPs in Europe and Asia/Pac but this is our first [for IP service] in the region,” said a Sprint spokesman.

Sprint also plans to add a couple more sites in the region over the next 6 to 9 months, according to the spokesman. “We are seeing a lot of demand there,” he said.

The IP network development announced today involves Santiago, Chile and Caracas, Venezuela. Those new sites are part of Sprint’s SprintLink IP network. The other cities Sprint may go into are Bogata, Columbia and Buenos Aires.

The move is also supportive of the providers’ U.S. customer base, in need of access to Latin America. Sprint plans to offer services such as IP VPNs, security services and managed network service via the IP network.

“We are demonstrating our commitment to a global build out,” the spokesman said.

Also in the Latin American region, today reports surfaced that Telecom Italia intends to sell 18% of its stake in Brasil Telecom. That move would reduce Telecom Italia’s ownership in the company to 20%.

Telecom Italia has a good reason for the sale. Brazilian regulatory authorities require that Telecom Italia must sell the 18% stake if it plans to offer nationwide wireless service through its mobile unit, Telecom Italia Mobil SpA.

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© 2012 Penton Media Inc.

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