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FOR IMMEDIATE RELEASE
Arbinet-thexchange Expands Spot Market for Minutes,
Adds Fourth Exchange Delivery Point in Frankfurt/Main to
Create Liquidity in Germany, Central Europe
New Brunswick, NJ – May 19, 2003 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of voice minutes, expanded its spot market this week with a virtual Exchange Delivery Point (EDP) in Frankfurt/Main, Germany. Arbinet-thexchange gives its Members access to a liquid spot market of buyers and sellers for more than 1,000 breakout destinations, and advanced software to improve carrier minutes trading margins.
Traffic can enter or leave thexchange in New York, London, Los Angeles and now Frankfurt. It is routed by software from a central location and allows seamless trading in the spot minutes marketplace regardless of a member’s point of interconnection. Arbinet-thexchange has received 22 patents for its platform. Members use it to optimize their trading from any of these leading traffic hubs. Arbinet-thexchange’s new points of interconnection are in rooms 1.1 and 1.3 at Itenos, Kleyerstrasse 90 in Frankfurt/Main. From there Members can trade on the London EDP without incurring additional long-haul transport cost.
"In addition to demand from existing Members, telecommunications companies in Germany, Central and Eastern Europe have been asking us to provide an easy, cost effective way for them to reach thexchange," says Bill Haner, Arbinet-thexchange SVP of Worldwide Sales. "The addition of this strategically located EDP will increase Membership and liquidity in these markets and create new buy and sell opportunities for all Members."
Arbinet-thexchange created and operates the spot minutes market, currently trading more than 22 million minutes per day, or 8 billion minutes per year. Buyers boost their gross margins by increasing their call completion rates through highest quality first routing or lowering their cost of minutes with lowest price first routing. Sellers benefit from reaching new markets without incremental sales or network expense and eliminating losses from buyer bad debt. Both reduce network and administrative cost and complexity.
"Our first quarter trading volumes grew 14% over the fourth quarter of 2002. This rapid growth in today’s tight telecom market gives us the confidence to expand our business," adds Curt Hockemeier, Arbinet-thexchange President and CEO.
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 12 of the 15 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.
A Member inputs 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.
For more information, visit Arbinet-thexchange at www.thexchange.com.
120 Albany St. Tower II, Suite 450, New Brunswick, NJ
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com
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