FOR IMMEDIATE RELEASE
Arbinet to Introduce Paid Voice Peering
New Service Will Enable VoIP Companies to Commercialize Inbound Calling to their Customers over the Internet
New Brunswick, NJ, June 1, 2005 – Arbinet-thexchange, Inc. [Nasdaq: ARBX], the leading electronic market for trading, routing and settling communications capacity, announced today that it will introduce a new service that will allow voice over Internet protocol (VoIP) companies to get paid for telephone calls to their customers.
Local access charges, the fees for terminating a call to a customer, which total an estimated $14 billion annually in the United States alone, have been unavailable to a VoIP service provider until now because calls destined for a VoIP customer are typically sent through a local telephone company’s network and that company retains the termination charge. Two key puzzles needed to be solved to enable commercial settlement for inbound Internet phone calls. The first was a way to match a traditional phone number to the IP address of a VoIP customer, and the second was the ability to charge for routing the call directly to the customer over the Internet.
“There are companies today who provide free termination of calls between VoIP service providers, but, in our view, that will not be of interest to large telecom companies,” explains Curt Hockemeier, President and CEO of Arbinet. “Our new service commercializes this activity in such a way that we expect it will eliminate an expense and create a new revenue stream for VoIP service providers.”
Arbinet’s new commercial voice peering service provides a central telephone number to IP address mapping database and settlement system. An inbound call from an Arbinet buying Member will be checked against this database and sent directly to the selling Member’s VoIP equipment. The seller can charge a termination fee for receiving the call. Arbinet will collect and settle the transactions with buyers and sellers each 15 days.
Arbinet operates a voice exchange service which processes approximately 1 billion minutes of traffic monthly for 375 telecommunications service providers worldwide. Arbinet’s new paid voice peering service will allow telephone calls to find their way through the Internet to the called party, bypassing the local, incumbent telephone companies.
Arbinet is the leading electronic market for trading, routing and settling communications capacity. Members of the exchange, consisting primarily of communications service providers, buy and sell voice calls and Internet capacity based on route quality and price through its centralized, efficient and liquid marketplace. Members place orders through a web-based interface. Its fully automated, highly scalable trading platform matches these orders using proprietary software and delivers them through state-of-the-art facilities.
120 Albany St. Tower II, Suite 450, New Brunswick, NJ
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