KT Corporation has unveiled plans to enter the internet data centre market in Thailand supported by a strategic partnership with Jasmine Group, as the South Korean telecommunications provider targets Southeast Asia expansion.
Terms of the alliance will see the Seoul-based business join forces with Jasmine Telecom Systems (JTS) - a data centre subsidiary of the Thai network operator - to expand internet capabilities across the local market.
“This internet data centre business partnership with JTS is a great opportunity for KT to prove its business capability in the global market," said Kim Youngwoo, head of Global Business at KT. "We are ready to expand our outreach to global markets through our endeavour in Southeast Asia, which is a newly emerging internet data centre market."
According to the agreement, plans are in place for KT and JTS to enter the Thai market by the second half of 2021 with the aim of providing “high-quality services” to global cloud service providers.
Central to such efforts will be the delivery of consultation services alongside the development of financing strategies and new business models specific to the internet data centre market.
“The hyperscale data centre and cloud service business will be a foundation to add value to Jasmine Group's network business,” added Somboon Patcharasopak, president and director of JTS. “Through joint development of IDC business, we look forward to long-term cooperation with KT.”
The partnership comes six months after KT signed a US$19 million contract with Jasmine Group affiliate, 3BB TV Co, to provide commercial internet protocol TV (IPTV) services in Thailand.
The data centre market across Southeast Asia is forecast to expand at an annual growth rate of 16 per cent during the next five years, driving by emerging markets such as Thailand and Indonesia, according to Frost & Sullivan findings.