Danish private label VoIP systems delivering firm, GoIP International, will establish its Latin American subsidiary in Nicaragua early next year, company COO Stig Skaugvoll told BNamericas.
"Nicaragua is going to be a production facility thanks to a business program supported by the Danish foreign ministry. It's a place where we have good access to software people, whereas in Denmark we have less than 2% unemployment, making it is difficult to find [employees]. We will also have sales people all over the [Latin American] region," said Skaugvoll.
According to the executive, the company has access to funding through the Danish foreign ministry's financial aid program, which provides incentives to companies from Denmark that want to enter the Latin American market.
"They have the funds available but they don't have the projects. So we are going to bring those parties together," said Skaugvoll.
The company also believes it is important to have a local facility to better service local customers in their own language.
In November, GoIP announced a partnership with Danish wireless IP network system developer RTX Network Systems, a business unit of RTX Telecom, for the supply of infrastructure to telecom providers in Latin America.
The companies' joint solution is initially offered in areas of Latin America that are not currently covered due to high establishment costs. The companies recently signed an agreement for the delivery of their solution with an operator in northern Brazil.
"We put this package together and implemented it with an operator in northern Brazil. Because when you're new in a market you don't have a name, you have to show what you can do. The best thing for us to do, initially, is to form a partnership with a small operator covering one city and show how well it is working," said Skaugvoll.
Combining RTX Networks System's infrastructure for the establishment of last mile wireless with GoIP International's "Voice in a Box" system makes it possible to establish telephony and data transfer in low income areas, while still offering financial benefits for providers.
RTX opened its regional office in São Paulo in September and has been positively received by operators, RTX Telecom's Latin America general director Palle Kjaer told BNamericas.
"The products we are offering are something new, something that apparently operators have been searching for, for a long time. [The products] help the last mile issue, digital inclusion, these are some hot topics - especially in Brazil right now," said Kjaer.
The company has indirect presence in Mexico through a partner, and the Brazilian office is in charge of South American operations.
"We are talking to many operators in Brazil, Argentina, Peru, Ecuador, Bolivia - so we already have activities in most of the countries in the region," said Kjaer.
Both GoIP and RTX expect Latin America to represent a significant part of their revenues and to be their main growth market in the near future.
"I think Latin America is going to rebound faster [from the global financial crisis] than any other region of the planet," said Skaugvoll.
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