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Canada’s Accedian bullish on private 5G growth in Latin America

Bnamericas Published: Monday, November 28, 2022

Canada’s Accedian, one of the world’s main providers of network and application monitoring solutions, sees opportunities to expand its Latin American business as enterprises and telcos advance on dedicated connectivity and private networks deals.

While the company does yet not have specific contracts signed in the region covering private networks, “several proposals are on the table,” Latin America sales VP Carlos Brito told BNamericas.

Among the industrial verticals seen as most promising for Accedian’s private network business in the region are banking, mining, general manufacturing and retail. Some of the main players in these segments are already Accedian's clients for other solutions.

Worldwide, Accedian estimates that 76% of manufacturers plan to use private 5G by 2024 to enable smart factories and industrial automation, which will require more control over security and performance over latencies as low as 1 millisecond.

“We have the ability to mediate a critical, forensic situation. For example, by monitoring packet loss and managing to prevent a self-driving car from colliding, a robot that does not respond to command, etc. By being part of this ecosystem, being a supplier, we manage to give this visibility. That's the value we are bringing,” Brito said.

The company’s clients include Latin America’s biggest telcos like América Móvil and Telefónica, as well as AT&T and TIM in Brazil.

One of the most recent contracts in the region was signed with Claro Brasil, the biggest subsidiary of América Móvil in Latin America. Brito also said Accedian’s solutions are now present at around 70% of Telefónica's subsidiaries in the region.

PARTNERSHIPS

One of the group's main bets to leverage private networks is through commercial partnerships and alliances.

These include network equipment and solutions providers such as Cisco and VMware or integrators such as NEC and consultancies like Capgemini. The company also has technology alliances with Ericsson and Nokia, among others.

NEC is participating in a dozen private network projects in Latin America, regional CEO Roberto Murakami told BNamericas in an interview.

Cisco, for its part, revamped earlier this year its approach to private 5G to include open RAN technology and further alliances. The strategy, heavily based on partnerships, encompasses mobile and internet of things portfolios, including sensors, gateways, device management software and monitoring tools.

“We have been a Cisco Solutions Plus partner for just over a year. It is a rigorous selection process. With that, we became part of the company's portfolio for network and application performance management. This means that Cisco engineers come to put our solutions into various projects and with that we get to participate in different initiatives,” Brito said.

With increasing automation and virtualization of networks and proliferation of connected devices and sensors, the need for comprehensive network monitoring solutions equally grows.

According to a recent report by MarketsandMarkets, the global network probe market is expected to reach US$908mn by 2027, up from US$549mn in 2022.

The opportunity for the company in the region is great.

CEO Dion Jouannou told BNamericas in an interview last year that Latin America represented about 10% of Accedian’s revenues and that the group was eyeing a 15% revenue share in the near future as 5G cloud edge and digital transformation projects unfold.

Brazil and Mexico are the company's main markets in the region.

Operating mostly via partners and resellers, Accedian has offices or local pre-sales teams in Brazil, Mexico, Colombia, Peru, Argentina and Nicaragua.

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