To All DMIT Customers and Partners: Service and Operational Update

DMIT is currently working on several major initiatives in parallel, including IP resource procurement, LAX infrastructure expansion, storage deployment, and customer support restructuring.

1. IP Resources and LAX Progress

IP Resources

The relevant ARIN application has been formally approved, and we are completing the final provisioning and delivery process.

LAX Hardware

All servers have been racked and are awaiting completion of the datacenter’s power provisioning. The storage equipment has also arrived and is awaiting installation and configuration.

Expected Restoration Sequence

Once the IP resources are ready, DMIT will resume processing IP replacement requests and announce the related compensation plan separately.

Once the servers are powered on and configured, and the IP resources are ready, DMIT will resume sales of selected products.

Once the storage expansion is complete, DMIT will fully resume product sales.

The extended suspension of product sales and IP replacement processing was not caused by a single issue.

While responding to recent network incidents, DMIT also had to proceed with IP procurement and approval, LAX hardware deployment, and storage expansion. IP resources require a lengthy application, approval, and provisioning process. Running several infrastructure projects in parallel also created significant short-term capital requirements, engineering workloads, and operational pressure.

To avoid increasing delivery obligations before sufficient IP, compute, and storage resources became available, DMIT temporarily suspended selected product sales and new IP replacement processing. These services will resume progressively according to the sequence above.

2. IP Replacement Policy and 95th-Percentile Billing

IP Replacement and the TOS

DMIT’s current IP leasing prices have risen to approximately 2.3 times their previous level.

The IP replacement interval stated in the TOS represents the minimum eligibility period before a customer may submit another replacement request. It is not a guarantee that an IP address will automatically be replaced at each stated interval.

Once the minimum interval has passed, a customer may submit another request. Actual processing remains subject to IP availability, technical conditions, network operations, and abuse-prevention requirements.

Historically, DMIT obtained a substantial portion of its IP resources through monthly leasing. As monthly leasing costs continue to rise, DMIT is gradually transitioning part of its IP inventory to direct acquisition.

Direct acquisition requires greater upfront investment, but the cost can be allocated over an approximately five-year period. This converts an escalating monthly expense into a more stable and predictable long-term cost and reduces the potential impact on existing customer pricing.

Traffic Quota Reset Policy

All of DMIT’s upstream bandwidth is billed using the 95th-percentile, commonly referred to as 95/5, billing model.

The traffic allowance and port speed of each service plan are designed around expected bandwidth costs during a billing period. Frequent traffic quota resets can cause actual usage to substantially exceed the plan’s original cost model and place additional pressure on shared network resources.

DMIT therefore needs to adjust the pricing and usage rules for traffic quota resets to preserve fairness and ensure long-term service sustainability.

Traffic quota reset is an additional, non-standard feature. It is not presented as a default service entitlement in the shopping cart and is not guaranteed under the SLA or TOS. The adjustments made over the past several months were intended to evaluate actual usage patterns and support a more reasonable and sustainable long-term policy.

3. Responding to Industry Cost Increases

Recurring expenses—including power, network transport, IP resources, and datacenter services—remain major drivers of operating cost increases. At the same time, the cost of newly procured servers, storage systems, IP resources, and additional datacenter capacity has risen significantly.

DMIT’s current strategy is to absorb the cost pressure associated with new infrastructure through direct acquisition, longer cost-allocation periods, and longer capital recovery cycles, while seeking to maintain stability in the renewal structure of existing products.

Although the current procurement costs of servers, storage systems, and IP resources are significantly higher than in previous years, these assets can remain in service for multiple years. DMIT can therefore accept slower capital recovery and lower short-term margins rather than concentrating the cost of new infrastructure purchases into existing customer pricing.

Based on DMIT’s recent quotations for newly procured resources and the adjustment mechanisms under existing contracts:

Memory and storage equipment prices have risen to approximately 2 to 2.5 times their 2025 levels. In some cases, refurbished DDR4-platform hardware now costs more than the brand-new equipment DMIT purchased three years ago.

Pricing for new datacenter orders and additional capacity has generally increased by approximately 30% to 50%, with some locations approaching twice their previous pricing.

DMIT’s existing datacenter contracts generally continue under their original contracted pricing, subject to the annual CPI adjustments specified in those agreements. Cross-connects, Internet Exchange ports, and other ancillary services are adjusted according to their respective contract terms.

Quotations for certain new local transport facilities have increased by approximately 80%, and some carriers have begun passing government-imposed fees through on new orders or during contractual adjustments.

DMIT will continue using long-term procurement, resource consolidation, and longer capital recovery periods to reduce the impact of new infrastructure costs on the renewal structure of existing services.

4. Customer Support Restructuring

DMIT remains committed to providing high-quality customer service and to offering competitive compensation and stable career development opportunities across our support, datacenter, development, and network teams.

Due to the recent combination of cost and operational pressures, DMIT has slowed the pace of team expansion to avoid overextending company cash flow and compromising long-term employee stability. DMIT has not implemented proactive layoffs as a result of these pressures.

DMIT previously operated multiple segmented support workflows. In practice, requests often required unnecessary handoffs, increasing workflow complexity and reducing the efficiency of information sharing, technical escalation, and incident handling.

DMIT is therefore consolidating all customer support operations into a unified global support organization. Going forward, all customer support, ticket communication, and technical escalation will be conducted in English.

Under the new structure, all requests will follow the same ticketing, scheduling, internal communication, and escalation processes. This change is intended to reduce unnecessary handoffs and improve response times, information consistency, and overall service quality.

The transition to the new support structure was also one of the factors that affected response efficiency during several network incidents over the past week.

5. Conclusion

DMIT is currently completing additional IP resource procurement, LAX infrastructure deployment, storage expansion, and the restructuring of its global support operations. These projects have required substantial capital, technical resources, and management attention, and have contributed to a temporary decline in certain aspects of service and customer support quality. We sincerely apologize for the inconvenience this has caused.

DMIT’s immediate priorities are to progressively restore IP replacement processing and product sales, complete the LAX deployment, and finalize the new global support structure. DMIT is also deploying multiple new datacenter locations to support a wider range of customer requirements, including geographic coverage, network routing, latency, hardware configurations, and product types.

DMIT will continue using long-term capital investment, multi-year cost allocation, and disciplined operational planning to maintain service quality, long-term sustainability, and stability in the renewal structure of existing products.