Vonage Announces JV with Datora Telecom in Brazil
Vonage Holdings Corp. (NYSE: VG) today announced that it has entered into an agreement to form a joint venture with Brazilian-based Datora Telecom to deliver communications services in Brazil.
Brazil represents a substantial opportunity for Vonage and Datora, with 67 million total households, 17 million broadband households^1, and more than one million expats^1. Further, the Brazilian government made a commitment to invest approximately $8 billion per year between 2010 and 2013 to increase national broadband penetration in advance of the 2014 World Cup and 2016 Olympics^2. As a result, the number of broadband households in Brazil is expected to grow to 40 million by 2014^3.
"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. "Datora is an innovative telecommunications provider with a proven track record of success. Their entrepreneurial culture, market expertise and presence in Brazil will be invaluable as we embark upon this new market opportunity together."
O'Loughlin continued, "Today's announcement marks a major milestone in our international expansion strategy. This is the second international partnership we've entered into in less than one year as part of our continuing efforts to drive growth."
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.