Telecom partially hosting Mega
Telecom is now acting as a supplier to Kim Dotcom's Mega online storage service.
Until recently Mega had been hosted only in Germany and Luxembourg, but Mega chief executive Vikram Kumar said today that Telecom's Gen-i business unit was now hosting about 10 per cent of the files that have been uploaded by Mega's 3.5 million subscribers since the launch of Dotcom's new service in January.
It was hosting files from customers in New Zealand, Australia, the Pacific Islands and the west coast of the United States, he said.
Kumar said he did not believe Telecom had any qualms about doing business with Mega.
Dotcom is facing extradition proceedings on United States' copyright charges, but the agreement appears to mark another step in his rehabilitation in the court of industry opinion as a legitimate businessman.
Gen-i spokeswoman Kate Woodruffe would not say whether the company had any reservations before entering into the contract, saying Telecom "did not talk about our clients without their permission".
Kumar said it was usually 10 or 20 times more expensive to host files in New Zealand than in Europe, but Mega and Telecom were able to strike a commercial deal that made sense for both firms.
The terms took into account the fact that about four times as much internet traffic flowed into New Zealand than flowed out of the country. That meant there was excess capacity on New Zealand's outbound links. On the other hand, traffic to and from Mega's New Zealand servers would mostly be outbound.