EdgeCast Announces Big CDN Deal With Chunghwa Telecom In Taiwan

EdgeCast continues to expand their network and sales reach with a new telco managed CDN partnership with Chunghwa Telecom’s data communications business group (HiNet) In Taiwan. HiNet will use EdgeCast technology to build a high-performance CDN within Taiwan and provide caching, streaming, acceleration and security services to Taiwanese media and content providers. HiNet will invest from a hardware, colocation and bandwidth perspective and EdgeCast will contribute their software and manage the newly built CDN.

This is a big deal for EdgeCast as Taiwan is one of the most difficult markets to reach, has a very high population of Internet users, is a tremendously desirable CDN market for traffic termination, and is a fast growing market for CDN customers. Once built, HiNet will be EdgeCast’s local reseller and will take their new offering to all of HiNet’s enterprise customers, where they are a major market leader for IP infrastructure in Taiwan. It will also give HiNet an excellent domestic CDN to service all their big enterprise and content customers.

This is another example of EdgeCast once again beating out other larger CDNs whom offer licensed/managed CDN services, as multiple CDN vendors were competing for Chunghwa Telecom’s business. EdgeCast has the most licensed/managed CDN deals in the market, and this deal structure with Chunghwa Telecom is very similar to ones they have done with PT Telecom in Indonesia and Telia in the Nordics.

EdgeCast says they now carry more than 5% of all worldwide Internet traffic, have 4Tbps of egress capacity deployed, and at their current rate of growth, is on a run rate of over $140M in revenue by the end of 2014. Based on my estimates, EdgeCast’s managed/licensed deals will account for about $15M in total revenue for the company in 2013.