PSINet Buys Into Philippines Internet Services

PSINet Inc., a global provider of Internet solutions and services, has made a 40 percent direct investment in two local Internet service providers (ISPs), Iphil Communications Network Inc. and I-next, and merged their operations under the corporate umbrella of PSINet Philippines.

As PSINet's new local office, the merged company will offer Internet access, Web hosting, e-commerce services, communications, managed services and transaction solutions to businesses.

"We will push these services to ISPs and large companies," said Therone Yupangco, country manager of PSINet Philippines. Yupangco, who headed I-next, assured the company's existing individual dial-up customers that their needs would continue to be met.

At the same time, however, Yupangco made it clear that the company would concentrate on the business-to-business market. "This is where our core offerings, from Internet access to other network services, are suited," he said.

One particular service is to help other ISPs offer prepaid Internet cards, said Dominic L. Baretto, assistant vice president for the virtual ISP solutions division and regional marketing at PSINet Philippines.

"We will now offer prepaid Internet cards to businesses that want to sell their own prepaid cards, or to those who want to use them in their companies, or to those that want to become ISPs, and to those who want to enhance the marketing of their products," Baretto said. "So, in a sense, we will be the suppliers of these big companies."

The new company is still building its infrastructure, which will ride on the PSINet backbone, an international Internet-optimized IP network designed to connect its strategic offices worldwide.

Fernando D. Contreras Jr., products development manager at PSINet Asia Pacific, added that a venture capital company called PSINet Ventures will also be established here. "PSINet Ventures will also come here and make strategic investments in intelligent local start-ups," said Contreras, who was president of Iphil.


The newly formed Internet company will also set up a data center and collocation facility here next month to provide hosting services for Web sites and mission-critical data for its customers and to offer a variety of software applications.

Neil D. Quiogue, vice president of the Hosting Center at PSINet Philippines, said the Facilities Managed Center will address the needs of companies that want to outsource the management of their applications.

"It will also offer managed Web applications and virtual ISP services to industry partners that want to offer branded, proprietary content to their customer base," added Quiogue.

The data center will connect to the PSINet backbone, which has a 20M bps (bit per second) to 45M bps capacity. It will have its own power generators, active servers, automated back-up facilities and physical security devices.

"The Facilities Managed Center will be in Makati City (in Metro Manila). Our plan is to have one data center with multiple points of presence (POPs) in the country," said Quiogue, adding that the center is also part of PSINet's long-term plan for local application service providers.