Abstract: With the development of telecom technology and the openingup of telecom markets, the competition in the telecom industry in China has become more and more intensified. The paper introduces Telehouse, a mode of service successfully provided in Europe and America, and analyses its features and advantages. The paper also discusses the opportunities and challenges if Telehouse is to be provided in China as a new area for the growth in telecom industry.

Key words: Telehouse, IDC, telecommunicationvalue-addedservices