Telecom, Unicom will jointly establish CDN company to break the network barrier

"China Telecom, China Unicom to jointly fund the formation of a CDN company, the Chinese CDN market is likely to usher in a shuffle." "A few days ago, a former Chinese telecom senior to reporters that the cooperation has been discussed for half a year, will be the group of strategic investment by both parties to set up a company, may be listed recently." The newly established company will be operated by China Telecom Cloud Computing branch.

According to the reporter understand, not long ago, China Telecom chairman Wang in Guangdong research work instructions mentioned: "We and China Unicom jointly set up CDN company, greatly improve the quality of our two basic operators, and other Internet companies to compete." ”

This message was not officially confirmed by telecommunications and Unicom.

CDN Market or Shuffle

The CDN (content IBuySpy receptacle), known as contents distribution network, is an important means to alleviate network congestion and improve the response speed of Internet service. CDN Service Quality directly determines the user's video, online shopping, web browsing experience. With the rise of mobile internet, CDN Market has been paid more and more attention.

At the end of 2013, China Telecom Cloud Computing Branch officially launched the cloud accelerated CDN products, into the CDN market. At that time, coincided with the Chinese CDN market ushered in the peak, with the launch of CDN service with the same Aliyun.

2013, China CDN Market size reached 2.2 billion, compared with 2012 growth of 50%. In the meantime, CDN-related shares created a record 500% per cent a year. March 2013-March 2014, the domestic largest CDN service provider network technology prices from 20 yuan to 132 yuan, or 560%; in the U.S.-listed CDN Enterprise Blue Flood, the share price climbed from 3.7 U.S. dollars to 25 U.S. dollars, or 575%.

However, China Telecom's CDN product has not been able to rise rapidly. At present, net-host, blue flood in the domestic market share of 43.8%, 40.1%, the two are China's CDN market "duopoly."

Compared with the internet, the Blue flood, China Telecom has the number of rooms, servers, broadband network coverage, capital scale and other advantages, but always limited by the "cross-net" problem.

"CDN Service, the most important measure is the whole network." Limited by the "South Telecom, North China Unicom," the pattern of telecommunications in the north of the CDN coverage is relatively weak, only with the resources of the third party unicom cooperation, affecting the competitiveness of the business. "A China Telecom cloud computing company product line people told reporters:" With Unicom set up a joint venture, can provide coverage of the whole country CDN service, completely solved the ' cross-net ' problem. ”

This is also the purpose of cooperation between telecom and Unicom. "The above mentioned above the former China Telecom senior said:" CDN Market will take place some changes, network, the blue flood season will face some pressure. ”

"How much the operators will win in the future depends on their market operations," he said. "These people told reporters that because of the lack of open source software talent, China Telecom CDN Business in DNS resolution, TCP optimization, network traffic scheduling and other operational technologies are not very good," now weaker than the opponents, but they have attached importance to. ”

However, the web-hosting technology is not worried about competition from operators. Network accommodation technology in response to reporters said: "The network of CDN business has been operating for more than 10 years, technology, market, organizational structure to maintain the lead, the current market capitalisation of the domestic professional CDN first." More competitors will expand the market and urge the company to grow faster. ”

Breaking the network barrier

"For operators, harvesting the CDN market is only superficial. The deeper significance is that the two sides in the network resources level of cooperation, can help the Internet business open a broader market. A Chinese Unicom told reporters, "Today's internet companies, in fact, hope that operators can provide across the three major operators of the business, or platform." ”

Earlier this year, the reporter interviewed China Telecom "wing bit Platform" business director Hu Yanqiang, wing bit platform is China Telecom's innovative business, is China Telecom based on fiber-optic broadband development of a value-added service, mainly for Internet enterprises, can significantly enhance the download, video, games and other business experience. In Fujian Telecom's pilot, the wing-bit platform makes Fujian Telecom's pilot broadband business increase by 20%. Since then, the business has been the focus of China Telecom group, and demand nationwide implementation.

Hu Yanqiang told reporters at that time, in Fujian, the wing-bit platform covers only millions of broadband users, only to attract the cooperation of the Thunder, expanded to 11 provinces of China Telecom, covering users reached 60 million, and quickly attracted Baidu, Youku, Tencent, such as routing companies.

For the wing-bit platform, if you can break the network barrier, covering Unicom, mobile users, the value will be magnified several times, the three operators can also use for their broadband services to open a "New World", reversing the disadvantage of the decline in broadband revenue.

Have this appeal, not only China Telecom. 2013, China Mobile developer platform has United Telecom, Unicom, the release of the integrated Billing SDK, to get through the three operators of the application store phone payment, to help developers realize a development synchronization coverage of the three major operators of the application store.

Wu, an open platform business manager for China Mobile, previously interviewed by reporters, said: "The converged Billing SDK has opened the payment channels for the three major carriers, which can help developers save a lot of development time." We also hope that we can unite telecom and Unicom to open more platforms and attract more developers. ”

It should be pointed out that only through the payment Channel One, the three major operators to negotiate for nearly 1 years. Currently, no other platforms have been opened. Wu told reporters: "You know, operators of the system, do this kind of thing difficult." ”

But Huawei, the telecoms equipment company that sees the business, is building an open platform that can get through all the operators, which Huawei calls CaaS, which has made breakthrough progress in Europe and South America.

For Telecom, Unicom, CDN Company in the future operations will be able to accumulate a large number of integration experience, whether the experience can be replicated to other Internet business, all still need to be in the future operator decision.