The agreement will come into effect when GBI lights its fibre ring around the Persian Gulf, expected to happen by Q3 2011.
Paolo Gambini, Tinet’s chief marketing officer, said the deal will further stimulate trade between the two regions: “We’ll now have access to new open access infrastructure which will make the delivery of services into and from the Middle East easier and faster.”
Market watchers say the deal will be particularly welcome for service providers moving traffic from under-developed Middle East markets like Iran and Iraq to Europe, historically an expensive and slow process. Hussam Barhoush, a consultant with Pyramid Research, said: “Both Iran and Iraq are booming in terms of internet users, and projects like GBI are essential to help meet current demand.”
Mohamed Elagazy, SVP of strategy and international relations with GBI, said European and US enterprises will also be beneficiaries: “Traffic is increasing rapidly and demand is growing between the Middle East and Europe and between Asia and Europe.”
Elagazy also warned that GBI’s launch might not lead to an immediate drop in wholesale pricing, but the company expects wholesale demand will increase.
