Colocation Services
We have 110 colocation facilities ready to provide colocation services available for rental throughout Myanmar and Cambodia.
In response to customer demand, we have built, and will continue to build colocation facilities and to make them available for lease to our customers. These customers, who are already purchasing and/or leasing fiber from us, are able to access a shared, one-stop access point for backbone pathways, further increasing their stickiness to our network. As of December 31, 2018, we operated 110 colocation facilities, which are equipped to provide colocation services and can be made available to rent for a period of up to 14 years, throughout Myanmar and Cambodia. These colocation facilities are constructed and located along our network routes, at important nodes in our network and in properties leased by us from third parties, and can be expanded to increase the space available for colocation services with minimal capital expenditure.
We provide customers with the ability to house and operate their own optronic equipment in our rooms for an additional fee, or as part of a bundled package with purchases or leases of our fiber. Customers utilizing these rooms are able to link their optronic equipment to the fiber they have purchased or leased from us. By doing so, our customers are able to forgo building colocation facilities for their own use and can share the expenses relating to housing such equipment with other purchasers of our colocation services, thereby decreasing their capital and operational expenditures. Our colocation facilities are secured with locks, constructed with reinforced concrete, and are fully equipped with grid power, uninterruptible power supplies, batteries, rectifiers, and/or diesel generators, subject to our customers’ requirements. Our customers may house their racks with us with or without an on-site battery and/or generator, which would allow for uninterrupted power in the event of a grid failure.
As of December 31, 2018, we provided colocation services to 22 customers, each of whom were already purchasing or leasing fiber from us, from 104 of our 110 colocation facilities. Although the revenues we generate from the provision of our colocation services is currently immaterial, we believe providing this service to our customers supports our value proposition and will facilitate our customers’ continued use of our fiber networks. As a result, we expect to increase the number of colocation facilities capable of providing such services in the near—to mid-term, subject to our customer’s utilization and demand for such services.
