Industry Spotlight: EdgeUno Seizes Terrestrial Fiber Opportunity

October 28th, 2024 by · Leave a Comment

Over the past decade, we have seen infrastructure investments in Latin America growing rapidly but with most of it going into data centers and subsea cables.  But markets across the continent are maturing, and EdgeUno sees an opportunity.  The infrastructure and cloud provider plans to leverage its footprint across the continent as it builds out diverse, new, longhaul terrestrial fiber between the markets it serves.  With us today to talk about their approach and the opportunity they see is CEO Mehmet Akcin.

TR: When we last sat down to talk, EdgeUno was just getting started.  What does the business look like today?

MA: From five people to a team of 150, EdgeUno has emerged as the operator of Latin America’s largest IP network, achieving a remarkable 50% CAGR over five years. What began in Colombia has evolved into a powerful pan-Latin American connectivity force, recently setting a milestone of 21Tbps across our network spanning 20 strategic hubs.

Our approach is unique: while traditional providers restrict themselves to their own networks, we leverage capacity from every available system. We’re not constrained by competitive fears – we actively seek the most robust paths across Argentina, Colombia, Ecuador, Peru, Brazil, and beyond. This vendor-neutral strategy ensures superior connectivity and higher availability for our customers.

Looking ahead, we’re expanding our footprint by building unique fiber routes where none exist today. Our mission is clear: bring content closer to users while creating the most resilient international connectivity infrastructure in Latin America.

TR: What has led to your decision to invest in fiber infrastructure?

MA: Our growth story is like a restaurant that started by serving great hamburgers. We began with network services (Layer 2 and 3), and customers loved what we delivered. As we expanded our menu of services, we faced a crucial realization: to maintain quality and meet growing demand, we needed to control our own supply chain.

Just as a successful restaurant might start its own farm to ensure the best ingredients, we’re now building our own terrestrial fiber networks (Layer 1). This isn’t just vertical integration – it’s filling a critical gap in Latin America’s internet infrastructure. While major players focus on subsea cables, terrestrial networks have been neglected. We’re stepping up to bridge this gap, ensuring the complete farm-to-table equivalent of internet connectivity.

TR: What fiber infrastructure are you looking to build?

MA: We’re deploying a state-of-the-art terrestrial fiber network across Latin America, connecting major data centers from Mexico to Argentina. Our network addresses a critical market gap: while OTTs have invested heavily in subsea cables, they lack the terrestrial dark fiber infrastructure they need for long-haul connectivity.

Our offering is comprehensive: dark fiber, spectrum solutions (both managed and unmanaged), and wave services – all on unique routes that provide essential network diversity. Complementing this backbone infrastructure, we’re strategically acquiring ISPs across key markets to deliver fiber-to-the-home (FTTH) services, creating a complete connectivity ecosystem from long-haul to last-mile.

TR: How will you approach the Peru-Brazil route?  What draws you to that region?

MA: We’re exploring multiple strategic routes to connect Peru and Brazil, including potential paths through Bolivia, while evaluating each option’s ability to serve emerging markets. This expansion will connect numerous metropolitan areas where we see significant growth potential and may acquire local ISPs to build strong regional presence. Having local crews in these areas won’t just support construction – they’ll ensure long-term maintenance and reliability of our network.

The timing is perfect: these regions are experiencing rapid development driven by mining operations supporting the electric vehicle revolution and broader energy initiatives. We’re seeing dramatic technological adoption across Brazil and neighboring countries, with cities growing at unprecedented rates.

The demand is already evident. Beyond basic connectivity for remote work and entertainment, we’re building infrastructure to support transformative applications: remote surgery, virtual classrooms, and emerging technologies. While AI’s bandwidth impact may be modest, virtual reality applications will require robust local infrastructure. Even streaming services need local caching for optimal performance.

We’re not just building fiber networks – we’re laying the foundation for Latin America’s digital future.

TR: How big a team do you envision putting together for your fiber business?

MA: As we build out our ambitious 30,000km fiber network, we’re strategically scaling our operations. Our expansion plan includes adding approximately 35 core team members focused on critical functions: fiber operations, DWDM systems, network operations center (NOC), customer support, sales, and marketing.

Additionally, we’re establishing a network of roughly 180 on-call contractors specialized in fiber construction and maintenance. This flexible structure ensures we can respond quickly to build, repair, and maintain our infrastructure across the region.

This is just the beginning of our network expansion – we’re laying the foundation for a robust operational model that can scale with our growth.

TR: What timeframe do you envision for this fiber buildout?

MA: We’re on track to begin construction of our first major fiber route in Q2 2025. Currently, we’re in the final stages of fiber procurement for this strategic path. While specific route details are forthcoming, this initial deployment represents the first step in our comprehensive 30,000km network expansion across Latin America.

A formal announcement detailing the route and its strategic importance will be made once procurement is complete.

TR: Why do you think investments in infrastructure in South America have been biased toward subsea and how do you plan to challenge that trend?

MA: While Latin American telecoms struggle with debt and inefficiency, our zero-debt position makes us uniquely agile. We act decisively, building fiber networks with speed and precision. Like a nimble tugboat guiding massive carriers to harbor, we’re the agile disruptor transforming Latin American connectivity.

For visionary investors and private equity partners: join us in building the future of Latin American internet infrastructure. Your capital, combined with our proven execution and debt-free operations, can generate significant returns while revolutionizing digital access across the region.

TR: What does the Latin American bandwidth ecosystem look like today?  How far has it matured in recent years?

MA: The economics of fiber infrastructure in Latin America have fundamentally shifted in our favor. Construction and equipment costs have dropped significantly, while our access to skilled labor has expanded beyond traditional telecom incumbents. This democratization of expertise, combined with Latin America’s competitive labor costs, creates a perfect opportunity to disrupt the market.

Currently, limited fiber availability lets providers charge premium prices. We aim to introduce European-style pricing models while navigating unique regional challenges like remote maintenance and infrastructure access. With an educated workforce now available even in remote areas like the Amazon, we’re positioned to build and maintain fiber networks efficiently across the region.

TR: How do you view the fiber ecosystem changing in response to your buildout plans?

MA:  Latin America’s internet infrastructure faces a critical vulnerability: when a single route fails, entire regions can lose direct connectivity. We’re solving this by building diverse terrestrial paths that ensure regional networks never go dark.

We’re not competing with existing routes – we’re complementing them. Through strategic partnerships with subsea cable operators, we’re creating a resilient network mesh across Latin America. Our vision is simple: São Paulo should never need to connect through Miami to reach Chile. That’s why we’re building the redundant infrastructure Latin America needs for a truly reliable digital future.

TR: What does your data center and edge compute look like today and how will it fit into your future?

MA: Our core business has evolved into a premium infrastructure service, managing over 5,000 physical CPUs and GPUs across Latin America for our partners. This white-glove service, providing customized server and network solutions, currently generates 91% of our revenue.

We’re now transforming our cloud and bare metal offerings into a standalone Edge Compute company. This new entity will operate like AWS, Google Cloud, or Azure – with independent buying power, negotiating leverage, and potentially its own brand identity.

Our infrastructure already includes two strategic edge delivery data centers owned and operated by us in Colombia and Ecuador. Rather than competing in saturated primary markets, we’re targeting high-potential secondary locations like Cancún, partnering with local companies for expansion.

Security underpins everything – it’s not just a service division, but a fundamental component of our connectivity and cloud ecosystem.

TR: At the other end of the spectrum, you mentioned that EdgeUno has been looking at the FTTx opportunity.  How would you approach that?

MA: We’re identifying promising ISPs across Mexico, Argentina, Chile, Peru, Colombia, and Ecuador that could benefit from our expertise. Through minority partnerships, we can provide these ISPs access to our network infrastructure, systems automation, and equipment support – dramatically reducing their operating costs without taking control of their operations.

But our mission goes beyond business efficiency. We’re committed to bringing high-speed internet to underserved communities across Latin America. While others avoid challenging markets, we actively seek them out. We believe every child and adult deserves the same quality internet experience, regardless of their neighborhood. This isn’t just about building infrastructure – it’s about building digital equality.

TR: Do you see any markets in which the FTTx opportunity is particularly attractive in general right now?

MA: Argentina stands out as the market with exceptional growth potential. Despite its current business complexities, we see parallels with Brazil before its internet market explosion. The indicators we’re seeing in Argentina today mirror those early signals that preceded Brazil’s dramatic digital transformation. This positions Argentina as potentially the most promising growth market in the region.

TR: Any final comments?

MA: We’ve transformed from a $100K startup to a $50M ARR company in just 5 years by solving critical challenges in Latin America’s internet infrastructure. Our zero-debt position allows us to move swiftly, building diverse fiber networks that prevent regional blackouts and reduce dependency on single connection points.

While major telecoms struggle with debt and inefficiency, we’re revolutionizing connectivity across Brazil, Mexico, Argentina, Chile, Peru, Colombia, and Ecuador. Through strategic ISP partnerships and targeted infrastructure investments, we’re bringing high-speed internet to underserved communities while operating a highly profitable white-glove infrastructure service managing over 5,000 CPU and GPUs powering future of Cloud and AI in Latin America.

TR: Thank you for talking with Telecom Ramblings

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Categories: Cloud Computing · Fiber Networks · Industry Spotlight

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