Global IDC, CDN Providers Discuss China Market Opportunities


At Capacity China 2012, a conference for the wholesale telecommunications industry, in Beijing today, domestic and foreign Internet data center (IDC) and content delivery network (CDN) service providers met to discuss cooperation opportunities in the China market. Demand for IDC and CDN services in China has grown rapidly, driven by increasing online video usage and robust growth in mobile internet traffic. However, IDC and CDN providers expressed concerns over non-transparent bandwidth pricing and strict regulation over internet content in China. For instance, Chinese CDN service provider ChinaCache (Nasdaq: CCIH) pointed out that bandwidth prices in different areas of China remain highly variable, while Sprint noted the hurdle posed by the need to obtain a content license before it could promote its "Sprint Mobile ID Pack" solution (Sprint Mobile ID Pack allows users to purchase prepackaged apps, ringtones, wallpaper and widgets organized around individual user preferences) to Chinese partners.

ChinaCache CTO Ken Zhang revealed that currently about 1,000 companies - mainly small and medium Internet firms - are using ChinaCache's cloud computing services. Zhang also indicated that ChinaCache is trying to develop more traditional enterprise clients, which currently comprise only a small portion in its total client base. The company is also in the initial stages of providing more secured cloud computing services for the banking and finance industries.


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