PSINet will focus its efforts in Brazil on corporate market, Internet infrastructure and e-commerce development, and plans its next move in Latin America to be in Argentina.
Although PSINet acquired three ISPs that focus on the home-based Internet user (Openlink, STI and Horizontes), its goal is to conquer the country’s corporate market and bring its e-commerce tools and solutions to Latin America, according to PSINet CEO and founder William Schrader.
The global deals that PSINet has inked with computer giants such as Microsoft and HP will also be taken to Brazil and will help put forward the company’s e-commerce projects, Schrader.
PSINet believes that it will be able to stimulate growth and perhaps even an e-commerce explosion in the country. PSINet’s first e-commerce services are expected to become available before the end of this year, through Brazilian ISPs acquired by the company.
Internet infrastructure in the country is another target of PSINet investments. The company plans acquisitions and partnerships to build this market to form fiber optic and cable networks, but announced that it has funds available to build the network itself if interested partners are not found.
PSINet also stressed the role of Embratel, which will be the company’s Internet developer in Brazil.
“Embratel is a market co-developer, as without them there wouldn’t be infrastructure or Internet in Brazil,” said Schrader, who also did not hide that the Embratel relationship will vary between “competitor and co-developer.”
Schrader also said that StarMedia and America Online Brazil will not be direct competitors with PSINet, because the two companies focus on content and target home users while PSINet will invest heavily in network infrastructure and connection as well as the development of regional content.
Investment figures and acquisition agreements for Brazil were not disclosed.