HONG KONG, 23 April 2014 – Pacnet’s equity joint venture in China, Pacnet Business Solutions (China) (“PBS”) and China Telecom Corporation Chongqing (China Telecom) today announced a strategic partnership to advance data center and cloud development in the city of Chongqing. Under the partnership, China Telecom will establish new Points of Presence (PoPs) in Pacnet’s Chongqing data center, CQCS1, enhancing its capability and helping propel Chongqing as well as the Liangjiang New Area to the forefront of the cloud computing industry in China.
The partnership combines Pacnet’s unrivaled infrastructure in Asia-Pacific with China Telecom’s extensive network reach to provide customers that are colocated in the CQCS1 data center with low latency, reliable bandwidth and fully diverse connectivity to critical hubs throughout an expansive footprint. CQCS1 is the first Tier III data center in Southwest China providing flexible solutions that meet the expanding business requirements of multinational organizations.
“Pacnet is honored to support the Chongqing municipal government in fostering cloud development to meet the growing power, efficiency and availability demands of this emerging telecommunications hub,” said Carl Grivner, Chief Executive Officer of Pacnet. “A significant milestone for Pacnet’s business in China, our strategic partnership with China Telecom enables us to provide low latency and reliable services for customers with existing operations or expansion plans in Southwest China.”
Pacnet is the only foreign invested company licensed to provide data center network services in the city of Chongqing.
“We are pleased to be a part of this strategic partnership and paramount technical initiative. The collaboration enables us to combine our extensive network coverage in China with a Tier III data center service delivered by a leading regional data center provider in order to effectively serve the growing cloud communities in Chongqing as well as the rest of the country,” added Zhaoqiang, General Manager at China Telecom Corporation Chongqing.
China leads the Asia-Pacific region in data center services demand. Its Southwestern megacity, Chongqing, is growing at an annual rate of 12%, and has become a very important hub for Pacnet in China as well as the rest of the Asia-Pacific region. By 2017, the Software and Information Services industry in Chongqing is forecasted to reach $350 billion and e-commerce volumes are forecasted to grow to $250 billion.
Speaking at the agreement signing ceremony, Zhaogang, Chief Engineer, Chongqing Economic and Informatization Commission said, “Pacnet’s partnership with China Telecom will help drive new growth in software and information services for both foreign and local enterprises, further advancing Chongqing as a major cloud computing hub in China.”
This collaboration expands on the Pacnet and China Telecom June 2013 Master Service Agreement (MSA) to provide IPVPN, Internet and data center services to global enterprise and carrier customers as well as cloud service providers looking to establish or expand their presence in China, one of the world’s largest and fastest growing digital populations.
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Pacnet is Asia-Pacific’s leading provider of managed data connectivity solutions to major telecommunications carriers, large multinational enterprises and government entities. Ownership of the region’s most extensive high-capacity submarine cable systems with over 46,000 km of fiber and connectivity to interconnected data centers across 14 cities in the Asia-Pacific region gives Pacnet unparalleled reach to major business centers in key markets including China, India, Japan and the United States. Combined with a comprehensive set of managed network and value-added data center services, its assets and experience in the region help Pacnet service large businesses worldwide including Fortune 500 companies. Pacnet is headquartered in Hong Kong and Singapore, with offices in all key markets in the Asia-Pacific region and North America. For more information, please visit: www.pacnet.com.
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