China Telecom Americas (NYSE: CHA) is looking to gain a stronger foothold in the U.S. Ethernet market and it has found that solution in Ethernet exchange provider CENX. Initially, China Telecom Americas will connect with CENX at its New York and Los Angeles exchanges.
"Connecting with CENX enables China Telecom Americas to extend our reach through a diversified platform." commented Donald Tan, president of China Telecom Americas in a release. "As an additional way to interconnect with our partners, we are able to respond to our customers' needs in a more scalable and efficient manner."
Indeed, by establishing a connection with CENX, China Telecom Americas and its parent could tap into new revenue opportunities for both American and Chinese-based MNCs that want more Ethernet connectivity for their satellite locations. In turn, U.S.-based service providers could also connect into other domestic business sites, and more importantly, to China and the 73 other countries China Telecom serves.
Given that the majority of CENX's publicly announced connection arrangements outside of Verizon have been with competitive carriers, the agreement with CTA also gives CENX, which is operating in a still nascent market, another sound proof point with a another large carrier.
While the release announcing the agreement with China Telecom is focused on its American subsidiary, it's likely China's dominant telco will leverage the CENX connections for its own domestic and international Ethernet expansion plans.
- see the release here
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