Optynex expects 300% revenue growth

Panamanian data services and internet access provider Optynex expects revenues of US$2mn this year, up about 300% from 2003, through organic growth and the launch of local telephony services, company chief executive Eric Meyer told BNamericas. Optynex already provides voice services exclusively within its network to about 120 of its customers, compared to about 60 clients three months ago, Meyer said, adding that for 2005 the company expects to double revenues. The company had intended to launch full local and long distance telephony services for the corporate sector last month, but postponed the launch until late April because of a last minute decision to change interconnection plans. The new strategy is to integrate Optynex's fiber network with that of incumbent, Cable and Wireless Panama (C&WP), which will give the company flexibility for faster expansion, without being dependent on C&WP for capacity to access its network, Meyer said. C&WP suspended interconnection work in December and January because of increased seasonal traffic, causing a 30-day delay, but this does not mean the company is dragging its feet, Meyer said. By launching local, domestic long distance and international long distance telephony, Optynex will become Panama's fourth basic telephony provider, alongside C&WP, Clarocom and Telecarrier. Mobile operator BellSouth Panama also plans to compete in this market this year, adapting its network for fixed wireless telephony. Optynex currently has fiber in Panama City and the port of Colon, and Meyer expects the company to expand coverage to the city of David by the end of the second quarter, as part of its efforts to build a national backbone. Optynex already serves David through a third party, but both partners are in talks to establish a permanent relationship, he said. To this end, Optynex is in a second round of financing with Panamanian investors, which Meyer expects to conclude in 30 days. He could not say the amount involved, but said about 50% of it has been secured. The company is also working on a third round of financing, with international investors, to cover expansion to other parts of Central America, principally Nicaragua. This third round could conclude as soon as the third quarter this year.