FOR IMMEDIATE RELEASE
Arbinet-thexchange Provides Credit Enhancement For Telecom Carriers With New GMAC Agreement
NEW YORK – March 3, 2003 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of voice minutes, today announced it has signed a new agreement with GMAC Commercial Finance, a member of GMAC Financial Services, which is a wholly owned subsidiary of General Motors. GMAC Financial Services employs over 29,000 people in 40 countries and holds the financial power of over $200 billion. GMAC Commercial Finance will provide the company with credit enhancement for its Members, effective immediately. In addition, thexchange announced that Silicon Valley Bank will now perform the Company’s outsourced wire and collections services.
Arbinet-thexchange anticipates that, in signing with GMAC Commercial Finance, many of its Members will improve cost structures and increase their buying power on thexchange as a result of the credit enhancement. Consequently, sellers will experience an increase in demand.
“We are pleased to have the world-class financial muscle of GMAC Commercial Finance behind our Members’ transactions on thexchange,” says Arbinet-thexchange President and CEO J. Curt Hockemeier. “The benefits of these new arrangements, coupled with thexchange’s recently introduced online billing, are the keystones of our enhancement program that further increases the efficiency of trading and settling on thexchange.”
“We are delighted to provide thexchange with our credit enhancement services,” says Stuart Brister, President – Commercial Services Division of GMAC Commercial Finance.
About GMAC Commercial Finance
GMAC Commercial Finance (www.gmaccf.com) provides business-to-business lending, leasing and factoring products to a wide variety of clients in diverse industries. The group is regarded as a leader in its segment of the financial services market. With locations in the United States, Canada, Hong Kong, and the United Kingdom, they are positioned to provide lending services worldwide.
Two processes central to all telecom companies are selling access to their networks and routing calls off their networks to destinations worldwide. Arbinet-thexchange has created the spot market and designed and built the world’s most advanced system to automate anonymous minutes trading between telecom companies. More than 250 Members, including eight of the ten largest international telecom carriers, use thexchange to reduce their cost of service, improve route quality and expand revenues by reaching new markets without extensive network build out.
Thexchange’s Members input trade parameters and the system automates sales and purchase order execution, complex calling code matching, call routing to specific breakout destinations and manages the quality of service of traded capacity. The system also handles the credit risk management, billing and commercial settlement aspects of these transactions.
Arbinet-thexchange also distributes spot market transaction data that provides carriers with reliable pricing, quality and routing information for use in planning and negotiations. These products include: AXCESSCODEsm international calling code breakouts and AXCESSRATEsm spot market price and quality data.
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