T-Systems, the international services arm of Deutsche Telecom AG (ETR:DTE, news, filings), is expanding its services contract with Global Crossing down in Brazil. In addition to the private LAN, IP, and clear channel services that T-Systems has been buying from Global Crossing since 2003, they will now be leasing some 34Gbps in wavelength capacity. It will be used to link T-Systems' three data centers in São Bernardo do Campo, São Paulo and Barueri as part of an enhancement to the company's business continuity plan.
South American has been Global Crossing's strongest region since the purchase of Impsat a few years ago, posting steady growth and solid EBITDA margins. And Brazil's growing bandwidth appetite has been a big part of that. For those with both undersea capacity to the region and metro fiber within it, this will probably be a recurring theme over the next half a decade.