TM AND CHINACACHE STRIKE STRATEGIC PARTNERSHIP TO DELIVER CHINESE CONTENT TO MALAYSIA

ChinaCache International Holdings Ltd., ("ChinaCache") (Nasdaq: CCIH), a leading provider of content delivery network (CDN) services in China; together with Telekom Malaysia Berhad (TM), Malaysia’s leading new generation communications provider and Broadband Champion, have recently established a strategic partnership in a joint effort to provide Chinese content localisation in Malaysia.

The partnership will improve the accessibility of Chinese content for Malaysian Internet users, where ChinaCache will provide the technology to localise Chinese content in Malaysia which will enhance users’ experience and reduce costs for carriers. The localisation technology will allow content to be stored in, and served, via the caches deployed in Malaysia before reaching the end customers through TM’s network.

Joe Zhu, General Manager of ChinaCache’s North American branch stated: “The strong social media presence in Malaysia has accounted for growing interest in Chinese content and ChinaCache is committed to the goal of making that content easily accessible internationally.”

Commenting on the partnership, Rozaimy Abd Rahman, Executive Vice President, TM Global said, “TM is indeed very pleased with this collaboration with ChinaCache, where Malaysians, especially TM’s customers, will not only be able to enjoy excellent Chinese content but also enjoy enhanced surfing experience as the source of content is stored locally here, which will result in seamless network performance. This new collaborative effort between both companies will definitely help cement the value of Malaysia as an important content hub in this region, complementing Malaysia’s existing sound Internet infrastructure.”

A content delivery network (CDN) is an interconnected system of computers on the Internet that provides Web content rapidly to numerous users by duplicating the content on multiple servers and directing the content to users based on proximity. CDNs are used by Internet Service Providers (ISPs) to deliver static or dynamic Web pages but the technology is especially well suited to streaming audio, video, and Internet television (IPTV ) programming.

Historically, Internet users in Asia only received large amounts of content such as websites and videos from the North American region. Therefore, this partnership between ChinaCache and TM will cater to the increasing demand and encourage growing interest on Chinese content in Malaysia.

ChinaCache is a leading provider of professional CDN services in China which owns approximately 53% of China's CDN market share. It was establishes in Beijing in 1998 and was the first content and application delivery service provider licensed by China’s Ministry of Information Industry (MII), a predecessor of the Ministry of Industry and Information Technology (MIIT). Its customers include those from Asia, North America and other parts of the world that collaborate with ChinaCache to support their Chinese and Asian content delivery needs.

TM, in its transformation to evolve into an Information Exchange, recently launched its first regional data centre facility in Hong Kong. The data centre, named VADS Hong Kong Data Centre (HKDC) is expected to meet the increased demand for cloud-based services, via its ICT arm, VADS Berhad (VADS) which provides Managed ICT services. With this latest establishment, it marks the expansion of TM’s presence in data centres market and strengthens its position as a leading player in communications industry. Most importantly, the opening of this data centre marks the expansion of TM’s ICT and BPO footprint outside Malaysia to enhance TM’s ability to meet the expectations and requirements of the industry as well as generating new revenue streams in line with the Group’s aspiration to be a regional ICT and BPO power house and supporting Malaysia as the Regional Data Centre Hub by 2015 via VADS Berhad.

In November 2011, TM also established a strategic partnership with Akamai, a leading cloud platform provide in the US which will see Akamai’s NetStorage being hosted on TM’s network. The collaboration with Akamai on the NetStorage arrangement will see Akamai’s only such storage facility in South Asia hosted in Malaysia. The Akamai NetStorage, which will attract high volume of Internet traffic to TM’s network, will definitely strengthen Malaysia’s position as a regional Internet hub. Akamai currently carries 30% of global internet traffic and thus, TM’s ability in attracting them to host their data in Malaysia is further testament to the acceleration of Malaysia into a global data centre hub. This collaboration will help reduce our dependency of reaching content from other countries and generate higher traffic volume from regional ISPs into Malaysia.

TM owns or leases capacity on more than 10 submarine cable systems, which span more than 60,000 fiber-route miles around the globe, including several submarine cable routes that the company uses to carry traffic between Asia-Pacific region and North American region.

TM is also a member of the various consortiums for submarine cable systems in the region, which include Asia America Gateway (AAG) submarine cable network, South East Asia-Middle East-Western Europe Cable System 3 (SEA-ME-WE3 – SMW3), SEA-ME-WE4 (SMW4), Asia Pacific Cable Network 2 (APCN2) and Batam-Dumai-Melaka (BDM), and TM’s wholly-owned CAHAYA MALAYSIA.