The operating subsidiary of Trunkbow, a provider of mobile payment and mobile value added solutions in China, is entering an agreement with Shanghai Telecommunication Engineering (STE) for the construction, management and operation of a cloud based data centre in Shanghai, China (view press release). This data centre will provide hosted mobile payment solutions for both m-commerce and POS transactions. By extending its services to the cloud, Trunkbow will enable SMBs to utilise their technology under SaaS and PaaS models.
Under the agreement, Trunkbow will invest approximately RMB 180 million (USD 28 million) in the 8,262 square metre data centre and STE will provide the design and construction services. Trunkbow will receive transaction fees and a fixed percentage of the hosting fees paid by merchants for use of the cloud services. STE will also provide a minimum revenue guarantee of RMB 304.3 million (USD 47.9 million) over the initial ten-year contract term. STE will operate the facility and provide maintenance services through a partnership with China Telecom.
Construction of the new data centre will begin towards the end of the year and is expected to be completed within twelve months.