IMPSAT Fiber Networks, Inc. ("IMPSAT") (NASDAQ:IMPT), a provider of broadband telecommunications and data center services in Latin America with operations in the United States, announced an agreement with MSU, a contracted affiliate company of Lyonnaise des Eaux America Latina, to deploy IMPSAT's fiber optic cable along MSU's controlled public sewage system to efficiently increase the reach of its broadband network in Buenos Aires.
Lyonnaise des Eaux America Latina is part of the group Suez Lyonnaise des Eaux, which also controls, among other companies, Aguas Argentinas S.A. (AASA) and Aguas Provinciales de Santa Fe (APSF).
IMPSAT claims to be the first telecommunications company in Latin America to utilize a system of sewage pipes as an alternative for the reach and capillarity of its Metropolitan Area Network for purposes of building access. This system will enable IMPSAT to reduce the costs and timing for connecting its clients, corporate and small and medium-sized enterprises (SMEs), increasing the competitiveness and reach of its offering. The system has had high degree of success in Germany and other European countries where some telecommunications companies have extended in such manner their data transmission networks.
This contract allows IMPSAT to extend the capillarity of its Metropolitan Network, which spans 1,100 route kilometers in the region, along the totality of the sewage system estimated at almost 9,000 kilometers on a 6-year Indefeasible Rights of Use (IRU) basis. The agreement also provides for potential future extensions of Aguas Argentinas's sewage system. Under the terms of the agreement, MSU will deploy IMPSAT's fiber optic cables along the sewage system. The coverage of MSU reaches areas of high concentration of corporations and SMEs, which could now have access to advanced solutions, as well as vast residential areas. Additionally, following the current trend among utilities companies of providing telecommunications solutions, the extended network could potentially allow MSU partners to make use of IMPSAT's infrastructure to enhance their value proposition to their customers.
With the implementation of this contract, IMPSAT will install a specially designed high-resistance fiber optic cable. The cable is then stretched and attached to the side of the pipe for enhanced protection.
IMPSAT Fiber Networks, Inc. is a provider of Internet and private network integrated data and voice telecommunications services in Latin America. For more information, visit www.impsat.com.