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Arbinet Launches Hong Kong IP Exchange


Total Telecom

New Brunswick, NEW JERSEY – November 17, 2008 – Arbinet-thexchange, Inc. [Nasdaq: ARBX], a leading provider of innovative voice and IP solutions for buying and selling telecommunications capacity, today announces it has expanded its IP services with a new Hong Kong IP Exchange. Arbinet’s Hong Kong location is operational and ready to connect ISP sellers and buyers. Located at the MEGA-i Data Center, Arbinet’s new exchange provides customers in Asia with a cost-effective way to connect with ISP suppliers and manage their relationships more efficiently. Arbinet provides a simple, scalable solution for quality IP transit supply for service providers such as ISPs, VoIP operators, ASPs, content and other IP application providers.

Arbinet expects its first group of buyers to connect in Hong Kong by the end of the year. They will benefit from a scalable and affordable solution for connecting directly to multiple global and regional Tier-1 Internet Service Providers (ISPs) such as Telekom Malaysia. Customers will enjoy simplified IP supply management, network cost savings and optimized global internet routing performance. Additionally, Arbinet is in the process of expanding the reach of this exchange to customers in the HKCOLO Sinofavour data center. Arbinet expects to complete this expansion by December 2008.

Unlike traditional IP exchanges, Arbinet’s IP exchange enables buyers to purchase IP transit from multiple suppliers through a single connection, contract and bill. This provides customers a “one-stop shop” for paid peering and IP transit from ISPs selling locally on Arbinet’s Hong Kong exchange as well as its Los Angeles exchange. For quality-sensitive or mission-critical applications, Arbinet also offers an optimization solution for routing traffic based on near real-time quality metrics of jitter, latency and packet loss rather than traditional “best effort” Internet routing.

“Hong Kong has emerged as the second largest Internet hub in Asia and is a vital gateway to China," commented Alan Mauldin, Research Director at TeleGeography. "Our research has indicated that Intra-Asian Internet traffic has grown nearly 65% annually (CAGR) between 2004 and 2008." The Telegeography research demonstrates the demand that Arbinet’s new Hong Kong IP platform will fulfill.

This expansion supports Arbinet’s core business objective of growing the company’s Voice and IP service offerings throughout the world and provides customers with flexible ways to manage their communications supply relationships more effectively.

“Arbinet is committed to providing its customers with more choices and greater flexibility to grow their businesses,” states Steve Heap, Chief Technology Officer of Arbinet. “Similar to our voice exchange business, our IP exchange is an efficient marketplace for buying, selling, routing and settling IP transit capacity. With Arbinet’s access and expertise, our Asian and global customers can now tap into a one-stop buying experience to connect directly to multiple ISPs and peers to conduct business more efficiently.”;=1



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