Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Tuesday, September 02, 2003

SkyOnline bets on local operations to boost the Mercosur

Netizen¿s parent firm unified operations in Argentina to gain synergies and serve regional clients. Also owner of Teleglobe, SkyOnline is assessing purchases in Uruguay and Brazil.

SkyOnline bets Mercosurs¿ growth to capture new clients. The regional firm, present in Argentina, Brazil, and Uruguay, is getting ready to arrive in Chile while assessing new acquisitions to ease growth. Gonzalo Berra, General Manager of Netizen Argentina, told Convergencialatina that infrastructure and sub-regional management grant corporate flexibility to meet the demand of firms operative within the Mercosur.

From its data center in Buenos Aires, SkyOnline controls operations of its smaller data centers, in São Paulo and Montevideo, without two folding investments, but triangulating connectivity.

This year, SkyOnline plans to move forward in Brazil, Uruguay, and Chile. In Brazil, it holds the dial-up customer portfolio of O Site, the Brazilian version of El Sitio. Operations through fixed lines grow at 0.5% a month, according to Berra¿s estimates. SkyOnline, with 25,000 users, succeeded in reverting the economic situation of O Site, and cleared up finances. Now, SkyOnline is assessing two scenarios: either to grow hand in hand with Brazilian economy upturn, or to tap purchase opportunities rendered by recession.

In São Paulo, city where SkyOnline focuses activities, the firm also provides broadband services through ADSL, not only as an strategy to make clients more loyal. Though SkyOnline has wireless origins,  the firm is assessing the provision of wireless services in the main Brazilian city. The plan under assessment includes gradual forward moves with wireless, partnered up with a local operator, to make offers for firms and buildings.

The National Telecommunications Agency (Anatel) in Brazil may authorize SkyOnline to migrate to MCS in October. The new ruling for firms devoted to corporate services, called Multimedia Communications Services (MCS), will allow the firm to offer telephony, segment that in Argentina soared 300% –as regards traffic volume. Just at that point, the firm may start thinking about rendering free Internet access. The General Manager in Netizen argues Uy Uy Uy will only enter Brazil on an interconnection scheme that allows benefiting from minutes terminated in its networks.

However, in Chile, the free ISP already operates for a reduced number of people. SkyOnline may extend free access in Chilean market at large late this year, and this may be the starting point to invade the corporate data segment, to include the country in a project devised to serve the Mercosur.

In turn, in Uruguay, SkyOnline will devote US$ 4 million to strengthen operations left by Diveo. Netizen, that in Uruguay also offers IP telephony, may transfer the business model implemented in its country of origin, Argentina. In the East coast of the River Plate, the firm is in the final stages to purchase a local access provider, that may ease arrival. Data operations in Uruguay surprised Gonzalo Berra, who voiced several firms are trying to connect with its units in the Mercosur, mainly interested in joining Montevideo and São Paulo.

Meanwhile, in Argentina, Netizen closed a commercial deal with Millicom. Companies will jointly offer wireless connectivity solutions. Netizen Argentina and Millicom may integrate customer portfolios to expand coverage countrywide, maximizing technologies, as well as commercial and communication drives.

Last news and analysis

América Latina · Satellites

13/06/2025

Satellite Map Day 2025

Chile targets D2D service to supplement mobile networks

Panamá · Internet & OTT · Operators

13/06/2025

+Móvil to provide Internet to 3,102 schools

América Latina · Satellites

13/06/2025

Satellite Map Day 2025

Hughes to launch a constellation dedicated to D2D

América Latina · Satellites

13/06/2025

Satellite Map Day 2025

Anatel to introduce new regulations on sustainable use of resources and orbits

América Latina · Satellites

13/06/2025

Satellite Map Day 2025

For Satellite Services, LEO is a Game-Changer – Transforming the industry and user expectations

Search news