Latin America has become a target for many companies because of the potential wireless growth driven mostly by an increase in data traffic, plus the healthy economic and political environment across many countries in the region. The Canadian Edgewater Wireless Systems Inc. (YFI; TSX.V) moved in this direction earlier this year, when it announced distribution agreements in Mexico and Brazil. Now Edgewater Wireless is enhancing its presence by making a distribution agreement with JMTelcom, a wireless equipment distributor and systems integrator in Central America that has offices in El Salvador and Guatemala.
“Currently we have distributors in Brazil, Mexico and Peru, and now JMTelcom which is focused on Central America. We are working on a number of opportunities,” Edgewater Wireless’ president, Andrew Skafel, told RCR Wireless in an exclusive interview.
Edgewater Wireless only has one local office in Brazil, and all sales are made through partners. The company has entered into a distribution supply agreement with Red Network and SMTC in Brazil; and División Integral de Telefonía (Divitel) in Mexico.
Skafel explained that in Brazil, the company runs a full office with a country manager, and marketing and technical support teams. “Brazil is very strategic for us. We have invested heavily in the country, since we see growth potential in the wireless market.” When asked whether Edgewater Wireless would manufacture its products locally in Brazil, Skafel answered that this is actually part of its long-term strategy. “We believe it is better than importing,” he said.
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Among Latin American opportunities, the 3G offload is attracting a lot of attention. Although offloading data traffic is just starting in the region, carriers, vendors, service integrators and managed service providers are looking forward to getting a share of this emerging market. To address current needs, Edgewater Wireless recently launched WiFi³ infrastructure technology, which delivers three independent channels on a single wireless access point and can provide 50 times the aggregate throughput of single-channel Wi-Fi access points.
Without disclosing carriers’ names, Skafel said there are currently a number of trials with “large operators and corporations,” including the use of WiFi³ infrastructure. Indeed, last March Edgewater Wireless announced it has received multiple orders for its EAP3000 access points, including a $1.1 million order from SMTC, a distribution partner in Brazil. Edgewater Wireless has begun shipping units to various customers in South America, Asia Pacific and Africa.
In Central America, the agreement with JMTelcom includes a commitment for the acquisition of over 1,000 WiFi³ enabled access point products over the next 12 months. JMTelcom distributes and installs telecommunication equipment and solutions to major telecommunication companies, large enterprise customers and government agencies. JMTelcom has committed to acquiring 1000+ WiFi³ enabled access points over the next 12 months.
