China Launches Internet Exchange Center to Improve Net Neutrality

June 30, 2020 7:22 pm

BEIJING (PingWest) — China’s tech and telecommunication giants NetEase, Alibaba, China Unicom, China Mobile, among other companies founded a new company, named Internet Exchange Center Co., Ltd. in Hangzhou, Zhejiang province in China.

Press release regarding the company is vague, but public information indicates that the Internet Exchange Center facilitates peering among internet service providers, or ISPs. 

With a registration capital of 100 million RMB, the new company is expected to be a major step towards net neutrality in China, lowering internet companies' operating cost when transmitting large amounts of data.

Traditionally, those internet companies, including major ones like Alibaba, pays higher-than-market prices when connecting to ISPs in order to maintain high connectivity and low latency when serving customers, especially across different ISPs. The establishment of Internet Exchange Center is expected to facilitate better, more neutralized services to those internet companies.

According to the press release, approximately 40 companies, including major ISPs, internet companies, content delivery networks (CDNs), and data centers have connected to the Internet Exchange Center.

By making it easier, cheaper, and faster for companies to deploy services and move data, the Internet Exchange Center could also be of service to China's "New Infrastructure" national initiative.