Electronic Bulletin / Number 19 - January, 2006

Versión Español

Technology of Advanced Networks: Paraguay - Compañía Paraguaya de Comunicaciones S.A. (COPACO S.A.)

Background

COPACO S.A., the Compañía Paraguaya de Comunicaciones S.A., was established on November 15, 2001, and began operations on December 2 of that year. It resulted from the reorganization of the National Telecommunication Administration (ANTELCO), for the purposes established in Law 1615/00, “Reorganization of Decentralized Public Entities and Reform and Modernization of Central Government Agencies.”

Like all telecommunication companies of the region, COPACO must follow the technological evolutionary curve and meet market needs – in both basic telephony and access technologies for broadband.

Objective

In 2005, COPACO launched a new service: to offer bandwidth, initially of 155 Mbps, based on a secure and scalable IP platform, edge network (international network) or part of the backbone, with the leading technology on the Paraguayan market and of the region’s countries, with the aim of offering a Next Generation Network (NGN) for data to the country as a whole over a single packet-switched transport network providing good quality and different bandwidths for a wide range of services.

Present Market

COPACO now offers the service, via fiber optics, to the country’s ISPs; to corporate clients; and to some governmental entities. Only six months from project implementation, bandwidth use reached its limits, so that, just days from now, bandwidth of 155 Mbps and 34 Mbps capacities with different international connection routes will be leased.

The Paraguayan market is now seeking bandwidth at different points around the country for its numerous activities and COPACO is targeting NGNs with a view to securing scalability and flexibility in their design over time. Still pending is the second part of the NATIONAL DATA NETWORK with its NGN Synchronous Digital Hierarchy (SDH) system and LAST MILE ADSL 2+, which will come into operation in 2006. This will revolutionize the communications area in Paraguay.

Technologies to be implemented

The NGN INTERNATIONAL data network was designed based on the Internet Protocol (IP) and Multiprotocol Label Switching (MPLS) architecture, a standard Internet Engineering Task Force (IETF) label switching solution, independent of the different architectures and manufacturers of convergent data network solutions, which combines the advantages of the speed of ATM switching with the capacity of routing algorithms developed in the IP world environment, adding quality of service. Therefore, it is an optimal solution for adequate telecommunication network operation.

In MPLS label switching on broadband networks, the label is a number or identification that a router or piece of intake equipment assigns to a data packet of any technology (TCP/IP, Frame Relay, ATM) entering its domain to streamline and facilitate its transport through the network, overcoming the latency and jitter generated by each of these technologies with its own data.

MPLS combines the multi-service and traffic management capabilities of ATM with the scalability of packet networks to create a best-of-breed service provider network. Key reasons for MPLS deployment include:

  • Cost reduction through data network convergence: MPLS facilitates the convergence of disparate Frame Relay, ATM, Ethernet, and IP networks onto a single infrastructure to reduce capital and operating expenses.

  • Integration of voice, video, and data services: MPLS’ traffic management capabilities enable this services "triple play" on a common backbone.

New high-margin revenue opportunities through MPLS-based service offerings: MPLS's flexibility, high availability and multi-service support enables service providers to offer strict SLAs, increasing revenue and margins.

Broadband and technology are unquestionably among the key elements of development in Paraguay and in Latin America, as there is a direct correlation between technology and increased productivity and, so too, with quality of life.

Ms. Josefina Cano
Chief, Transmission Projects Division
COPACO – PARAGUAY
e-mail: jcanoag@copaco.com.py

 

 


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