From the Enterprise VoIP Experts

February 13, 2013

Vonage Expands to Brazil through Joint Venture Agreement with Datora Telecom

By SIP Trunking Report Contributor

Vonage Holdings, a provider of communications services connecting individuals through cloud-connected devices worldwide, has formed a joint venture with Datora Telecom to deliver communications services in Brazil.

Datora, a Brazilian telecommunications services provider, provides VoIP services throughout Latin America and across the globe. The telco has been engaged in telecom services for the past 18 years.  Datora was the first company to operate VoIP services in Latin America, and the first telecom provider in Brazil to be issued a Mobile Virtual Network Operator (MVNO) license.

The joint venture is part of Vonage’s strategy to expand in international markets. This is the second such partnership the company entered into in less than one year, according to company officials.

With 67 million total households, 17 million broadband households, Brazil represents a substantial opportunity for Vonage and Datora.

As part of the preparations for 2014 World Cup and 2016 Olympics, the Brazilian government has committed to invest approximately $8 billion per year between 2010 and 2013 to increase national broadband penetration. This is an opportunity to communications providers as the number of broadband households in Brazil is expected to grow to 40 million by 2014.

"Brazil is one of the fastest growing markets in the world for communications services, and we are excited to partner with Datora to bring new services to Brazilian consumers," said Kimberly O'Loughlin, Vonage's managing director, International Markets, in a statement.

"Datora is an innovative telecommunications provider with a proven track record of success,” O'Loughlin added. “Their entrepreneurial culture, market expertise and presence in Brazil will be invaluable as we embark upon this new market opportunity together."

Datora Telecom has a significant physical presence in Brazil, with points of presence in the country's most important cities. The telco has also signed more than 200 interconnection agreements with leading carriers in the countries where it does business.

"We share Vonage's pioneering spirit, and we are excited to partner with a company that has achieved success in providing customers with convenient, flexible and affordable calling plans through innovative communications solutions," said Wilson Otero, chief executive officer of Datora, in a statement.

Edited by Brooke Neuman