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Wholesale Solutions

In the international voice termination business, a call made by an end-user across borders does not frequently connect directly with one carrier at the destination market. It passes through several service providers, including wholesalers or transit carriers who aggregate traffic from several points and direct the call toward its destination where the final provider serves that mobile or fixed-line number.

The realities of the modern telecommunications infrastructure limit any one carrier from connecting directly to every other telecommunications provider. It would be too costly and inefficient to connect to the thousands of providers directly – particularly in international markets. First, the cost of transport provides a barrier. Second, switch equipment can only accommodate so many connections from other carriers due to port limitation or limited capital to purchase ports. Moreover, managerial, legal, business and technical agreements with every carrier around the world would present a daunting managerial challenge. Therefore, no single carrier can have a direct relationship (often termed a “bilateral agreement”) to exchange traffic with everyone. Carriers must use other carriers. Wholesalers provide a necessary intermediation function, often charging just a fraction of a penny per minute for their services.

Wholesalers also function as aggregation points that can lower pricing, particularly for small and medium sized telecom providers. In fact, even large incumbents who do not have significant traffic volumes to individual countries or destinations take advantage of the services of wholesalers for regions or countries that they cannot effectivly reach.  Hence, wholesalers play a vital role in the delivery of capacity at reasonable prices for everyone.

Arbinet connects more than 1,000 Members to one another and provides a marketplace for wholesalers to connect with retail providers as well as one another. Services such as free VoIP/TDM conversion facilitate connectivity everywhere. Back-office support services, standardized by thexchange model, offers the most cost-efficient management structure from a trading, routing and settlement perspective with the largest number of service providers.

Arbinet offers wholesalers a variety of service solutions, including:

  • RapidClearsm – Recieve net payments in as little as one or two business days
  • thexchangesm – Use thexchange platform to buy and sell global routes
  • AssuredAxcesssm – Choose AssuredAxcess Value to buy routes from price-competitive sellers on Arbinet’s exchange

Arbinet’s solutions enable wholesale carriers to reduce overall cost by increasing efficiency

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