America Movil (NYSE: AMX) and AT&T (NYSE: T) are both keen on finding more ways to serve their respective global multinational corporation customers in both Latin America and other emerging regions, and their latest agreement reflects that desire.
The pair plans to expand and enhance the coverage of their respective IP networks to provide services to MNCs in and from emerging markets.
Both service providers gain some specific benefits from the partnership. Through America Movil, AT&T will be able to instantly expand its Latin America regional reach to 15 countries, while America Movil will be able to use AT&T's global network to provide IP-based services to customers in the U.S. and other global locations.
"The immediate benefit is to expand the geographic reach of the services provided to corporate clients, thus increasing the opportunities for organic revenue growth. On the other hand, this allows America Movil better position itself on the international corporate sector in a region that over the last few years have seen increased efforts from Orange and BT to penetrate this market - not to mention regional giants such as Oi and Telefonica," said Jose Otero, President, Signals Telecom Consulting.
Otero added that for AT&T "this partnership provides the company with the opportunity of their corporate business offer to almost the whole region with a company that has national presence in all its markets and a similar technology migration path to the one exhibited by AT&T fixed and mobile networks in the US."
One of the key service elements of the agreement is VPN services, which continues to be a growing differentiator for global service providers. Amidst declining legacy frame relay data revenue, Ethernet and IP VPN services revenue, in particular, grew 19.3 percent year-over-year in Q3 2011.
Under the terms of the agreement, the two service providers plan to deliver enhanced VPN services to MNCs doing business in or with operations in Latin America.
America Movil and AT&T bring plenty to the table to serve global MNCs. AT&T has over 886,000 fiber route miles and currently provides its MPLS-based IP services to 182 countries, while America Movil's network spans 18 countries in the Americas with 294,000 fiber route miles.
- see the release
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