Network Link To South America Draws CustomersNetwork Link To South America Draws Customers

Two users have gone live with the first multigigabit-per-second, fiber-optic Internet link between Latin America and the United States, a link that broadens the spectrum of E-commerce possible between the two regions.

The tier-one network-access point, located in Miami and dubbed the NAP of the Americas, is the first privately developed U.S. network-access point. It's owned and operated by Terremark Worldwide Inc. and supports 12-Gbps capacity, expandable to 180 Gbps. There are four publicly funded network-access points serving most of the world from San Jose, Calif.; Chicago; Tyson's Corner, Va.; and Pennsauken, N.J.

One of Terremark's first customers, Global Crossing Holdings Ltd., says the network-access point is key to connecting the United States and Latin America. "E-business drives new opportunity for Latin America's economy. A guy operating a factory in Argentina will be able to take orders in real time over the Internet from a guy in the United States," says Pablo Mlikota, a Global Crossing VP. The new network-access point's second live customer, Florida International University in Miami, is connecting with universities in several Latin American countries and Puerto Rico.

David Joyce, an analyst with investment bank Guzman & Co., says the Miami NAP is an important online business-to-business development for the hemisphere. But it's overshadowed by the U.S. economy's downturn, which is affecting Latin America. On top of that, Brazil and Argentina are facing energy crises similar to California's, a situation exacerbated by the new technology influx.