NTT, Telefonica to connect international data networks

In order to offer a more global service to customers, NTT Communications and Telefonica International Wholesale Services said on Thursday that they've connected their networks. The agreement means that Telefonica Wholesale, a Telefonica company, can offer its customers services in Asia Pacific and NTT Communications can offer its customers access in Latin America.

The companies say that now they'll be able to better respond to customers that are increasingly expanding globally. Both companies sell data network access to other operators, corporations and governments.

Telefonica Wholesale has a presence in Europe, North America and South America but the relationship with NTT Communications adds the Asia-Pacific region to its portfolio. NTT Communications has a strong position in Asia-Pacific but the agreement with Telefonica adds Latin America to its coverage area. The companies compete with other global wholesalers such as France Telecom and Global Crossing.

Global deregulation and competition in telecommunications are driving wholesalers to look for revenues outside of their regions, according to research firm Atlantic-ACM.

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