FierceTelecom: What are the challenges of establishing a presence in the Latin American telecom market?
Junkins: There are a couple of challenges. One is that there's very much a lack of competition on the undersea cable assets to get to South America. Compared to prices for transatlantic, or even to a lesser extent transpacific, the price per megabit to deliver services into South America is very high. Luckily, the market price down there is also. There are also challenges from a business perspective in moving into South America. Understanding the tax of importing implications for getting hardware down there and having an operating entity down there. NTT already has an operating company down in Brazil called NTT Brazil that's been offering private line services on our Arcstar network for some time, meaning we have a leg up on some of the competition. It's still a challenge to import hardware into the country. We're trying to make sure we understand all of those implications before we pull the trigger.
FierceTelecom: Now that we're a few months into 2010, what are your hot button growth initiatives?
Junkins: For 2010, we expect to see that Trans Pacific growth continue at the same rate for 2009. Already, for the
first quarter we're ahead of plan of what we expected for transpacific growth. We actually just turned up our 32nd 10 Gbps circuits and that growth will continue throughout the year. We have a lot of capital investment to upgrade our T-1600s to handle that growth on our core network and the Ethernet edge to support 100 GigE to our customers either at the end of 2010 or early 2011. We're making all those plans right now.