article reprint — TELLABS INSPIRE q3 2008
Diveo Gets Set for MPLS
Latin American service provider seeks flexibility and network efficiencies as it expands capacity and reduces costs.
By Joan Engebretson
Diveo
Gets Set
for MPLS
Latin American service
provider seeks flexibility
and network efficiencies
as it expands capacity
and reduces costs.
B y Joa n E n geb r e t s o n
In the 1990s, a start-up called Diginet Americas decided to build
a communications network in Latin America to provide high-speed
data services sold on a wholesale basis. Today that business, now
known as Diveo Broadband Networks, boasts operations in Brazil,
Colombia and Mexico, and its customers include financial institu-
tions such as Schahin, ABN Finance and Visa.
With their revenue on the line, such high-profile customers demand
the highest QoS and have little tolerance for network downtime or
performance issues. They also seek to gain competitive advantage
through advanced communications services such as increased
broadband connectivity, employee one-number mobility between
fixed and wireless networks and advanced messaging services.
The increasing volume of traffic from these new services and data
applications has placed substantial demands on Diveo’s ATM-based
backbone. Last year, Diveo management realized customer demand
for bandwidth in São Paulo and other major cities in Brazil was
growing so fast that capacity would have to be expanded.
Rather than continuing with ATM, the company saw an opportunity
to gain significant network efficiencies and expand the services it
could offer by converting to an IP-based network infrastructure that
uses MPLS. Unlike traditional IP networks, an IP/MPLS network
can assign different priorities to different data streams, enabling
it to support guaranteed bandwidth rates and service level agree-
ments and to offer transparent replacement for ATM-based services.
Deployment of Diveo’s São Paolo IP/MPLS network is under way and
the company expects to carry live traffic before the end of this year.
“IP/MPLS is the future of networking,” said Rodrigo de Oliveira,
Diveo Brazil engineering and operations executive director. “By
deploying the technology today, Diveo gains network efficiencies
and flexibility that will serve us well into the future.”
Simplification and Savings
A key component of Diveo’s MPLS network is the Tellabs® 8800
Multiservice Router (MSR) Series. “We chose the Tellabs prod-
uct because it would enable us to have a smooth migration from
ATM to IP/MPLS and to offer a seamless transition for our clients,”
Oliveira said.
An important goal for Diveo was to move customers from the ATM
network to the IP/MPLS network with no interruption of service.
The solution also needed to be scalable and to replace a wide
range of existing ATM-based services on a feature-for-feature basis.
Decision-makers at Diveo opted for the Tellabs solution because it
required minimal customization and a limited number of network
elements, said Armando Camargo, sales director for Tellabs.
“In the initial phase, Diveo will deploy the Tellabs® 8800 MSR series
for traffic aggregation at the network edge,” Camargo said. “Phase
Two, which will occur in 2009, will involve loading the old [manage-
ment] systems onto the new ones.”
Diveo expects significant savings in capital and operating costs as
a result of the network migration. “They will gain cost savings by
reducing the number of network elements and simplifying daily
operational work, including a Tellabs maintenance plan that includes
software repairs,” Camargo said. Also, because the Tellabs 8800
MSR series can support any service on any port, Diveo will be able
to minimize the inventory of spares it will need to keep on hand.
On the services side, deploying IP/MPLS over the backbone will
give Diveo an extra level of flexibility and open up new revenue
streams by offering IP and Ethernet services, Camargo said.
Help Wanted
After a thorough analysis of the competitors, the company decided
to enlist Tellabs® Global Services to coordinate network architecture,
design, planning, installation and integration.
“Tellabs Global Services delivered a comprehensive solution to help
Diveo maximize its return on investment with the Tellabs equipment
being deployed in our network,” Oliveira said. “Using this approach,
we were able to take advantage of the experience and best prac-
tices of a team that had been involved in similar projects around
the world. Tellabs’ real-world deployment experience enabled us to
reduce risk, ensure quality of service and deploy a forward-looking
solution for our network. Effectively, the Tellabs team was able to
come to us and understand our needs. They were ready to support
us, and Tellabs was chosen.”
A targeted team of Tellabs employees participated in the Diveo IP/
MPLS migration project, including senior engineers, a senior project
manager and a network consultant. All of the employees have been
involved with the project since its inception a year ago.
2 article reprint — diveo gets set for mpls

“For the past four months, they have all been 100 percent Getting It Right the First Time
dedicated to Diveo,” said Ivan Vlasak, director of customer service
Diveo undoubtedly saved time by using the help of Tellabs Global
for Tellabs. About a dozen employees from Diveo’s engineering
Services, Vlasak said. But more importantly, he added, Tellabs’
organization teamed up with Tellabs Global Services. “We worked
involvement mitigated risk. Diveo’s owners include Goldman
together to create the entire network,” Vlasak said.
Sachs, Norwest Venture Partners, One Liberty Ventures and
other key investment groups.
Careful planning was critical to the success of the project. “First,
we needed to understand both the equipment and traffic types
“They couldn’t put their money at risk,” Vlasak said. “The
on their network because the new network had to work in a totally
network had to work 100 percent.”
transparent manner,” Vlasak said. “Then we mapped how that will
be done in an IP/MPLS network. On top of that, we also discussed
After the São Paulo IP/MPLS network is implemented, Diveo
the advantages of the new network and the new services we would
expects to undertake the same network migration process in
be able to deliver in the future.”
some of its other markets.
Tellabs also provided a training and support agreement. “We
“We found Tellabs to be the right partner for a project of this
trained them on Tellabs-specific IP/MPLS features,” Vlasak said.
magnitude, where the marching order is trust,” Oliveira said.
“The support agreement includes remote technical support 24/7,
“From the beginning, Tellabs demonstrated that Diveo was
along with hardware replacement and software upgrades.”
not just another customer. That makes a real difference.”

Acronym
ATM Asynchronous Transfer Mode
IP Internet Protocol
MPLS Multiprotocol Label Switching
QoS Quality of Service

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