(Yicai Global) Dec. 3 -- A unit of Chinese telecoms firm Montnets Rongxin Technology Group will join hands with Alibaba Group Holding on cloud computing to come up with new solutions in content distribution, fifth-generation wireless networks, and next-generation messaging services.
Shenzhen's Montnets Technology Development will purchase over CNY15 million (USD2.1 million) worth of products from Alibaba Cloud, based on their three-year cooperation agreement, the Shenzhen-headquartered parent said in a statement yesterday.
Montnets Technology and Alibaba Cloud will consider each other preferred partners in the fields of edge computing, 5G, and Alibaba Cloud Content Delivery Network, a content distribution service used to make websites and streaming platforms faster. Montnets will promote the Hangzhou-based tech giant's CDN products.
The deal will help Montnets to respond to its client's needs of digital transformation via advanced cloud computing technologies, it added.
The pair will form a team to develop Rich Communication Services, a messaging protocol that is deemed to take over SMSs with more interactive features, within Alibaba's ecosystem. They aim to boost the number of these types of advanced notes sent by Montnets's clients to at least 10 billion each year. The number of RCS messages within Montnets's service suite should make up 20 percent of that.
Alibaba Cloud will help Montnets to develop targeted solutions to key customers in the fields of finance, utilities, and government. The pair aims to prompt at least 10 financial and public sector clients to adopt Alibaba Cloud's products and co-create at least two new service solutions.
Montnets's [SHE: 002123] share price fell by 6.1 percent to CNY21.10 (USD3) this afternoon.
Alibaba's Hong Kong-listed shares [HKG: 998] dropped 1 percent to HKD193.40 (USD24.70).
Editor: Emmi Laine