HONG KONG -- (Marketwire) -- 10/28/12 -- Pacnet announced today that it plans to expand its IP VPN footprint in China, increasing its market coverage to serve large customers including carriers and multinational enterprises that offer e-commerce and telecommunications services.
Pacnet's equity joint venture in China, Pacnet Business Solutions (China), or PBS, has received an enhanced value-added service license from China's Ministry of Industry and Information Technology. The license expands PBS's IP VPN coverage from 20 cities to 23 provinces. It is the first Sino-foreign telecommunications joint venture to receive this license, which also allows PBS to continue to operate Internet data centers in five cities and provide Internet access in 10 cities. Pacnet will connect its IP VPN service to these data centers, providing a platform to offer enhanced managed services and cloud-based services.
PBS will now be able to deliver its IP VPN service to the province-level municipalities of Beijing, Tianjin, Shanghai and, Chongqing and 18 provinces including Hebei, Shanxi, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Henan, Hubei, Hunan, Guangdong, Hainan, Sichuan, Shaanxi. The autonomous region of Inner Mongolia will also be covered.
The expanded network gives PBS's clients the ability to reach a greater swath of customers in China and manage their businesses with Renminbi-denominated accounts.
"China now has the world's largest Internet population and it continues to grow rapidly, requiring a need for accelerated infrastructure growth to meet the increased appetite for connectivity," said Carl Grivner, Chief Executive Officer, Pacnet. "Our expansion plan positions Pacnet to capitalize on China's robust growth by broadening the reach of our connectivity solutions around the country as corporations continue to expand their businesses across China."
Domestic Chinese companies, such as the incumbent telecommunications service providers, comprise roughly 50% of PBS's clients. Global multinational corporations account for the remaining half. According to Frost & Sullivan, the domestic IP VPN market in China is forecast to grow from $974 million in 2012 to over $2.5 billion by 2017.
"We believe the expansion of our network and capabilities further cements our role as the premier gateway into Asia's largest market, and one of the fastest growing telecommunications and e-commerce markets worldwide," said Henry Lam, General Manager of Pacnet Business Solutions (China). "It is a significant boost to our business at a time where these services are in high demand."
"The integration with our data center capabilities marks another important stage in Pacnet's corporate growth strategy," said Mr. Grivner. "Pacnet Business Solutions (China) is quickly becoming a platform through which we can offer our innovative, state-of-the-art managed services, further strengthening our leading position in China and Asia Pacific."
Pacnet's industry-leading Domestic IP VPN solution offers comprehensive classes of service that are available in all Pacnet locations around the world, offering customers a broad range of choices for their network connectivity needs. Leveraging Pacnet's powerful Multiprotocol Label Switching (MPLS) network, it can support a wide variety of access technologies including Leased Line, Metro Ethernet and Digital Subscriber Line (DSL), giving customer flexibility in network expansion. Pacnet Domestic IP VPN also supports traffic prioritization, bandwidth management and Quality of Service to ensure guaranteed service performance and access to vital business applications such as CRM, ERP, Internet and database access and Unified Communications.
Pacnet is Asia Pacific's leading provider of integrated network and technology solutions for enterprise, service provider, and carrier customers. Ownership of the region's most extensive high-capacity submarine cable systems with over 46,000 km of fiber and connectivity to 23 data centers -- including its facilities in Hong Kong, Singapore, and Sydney -- gives Pacnet unparalleled reach to major business centers throughout the region including Japan, China, India, and the United States. Combined with a complete set of services for managed data, private line, hosting, collocation, and content delivery, its assets and experience in the region have helped Pacnet service large businesses worldwide including a who's who of the Fortune 1000. Pacnet is headquartered in Hong Kong and Singapore, with offices in all key markets in Asia and North America. For more information, please visit: www.pacnet.com.
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