FOR IMMEDIATE RELEASE
Arbinet-thexchange Expands Spot Market for Minutes,
NEW YORK – November 28, 2001 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of telephony bandwidth, expanded its spot market for minutes this week with an Exchange Delivery Point (EDP) in Los Angeles. Arbinet-thexchange will now allow members to connect in one location and execute spot market trades with telecom companies in Europe, North America and Asia without requiring out-of-region investments in infrastructure or personnel. Thexchange had planned to introduce service in the Los Angeles market in 2002, but accelerated its plan.
“Our members needed an outsourcing solution in L.A. sooner and the downturn in the industry meant we could get into business there for a fraction of the cost we had forecast,” Curt Hockemeier, President and CEO of Arbinet-thexchange explains.
Traffic between the EDPs in Los Angeles, New York and London is routed by software from a central location and allows trading in the spot minutes marketplace regardless of a member’s point of interconnection with the switching fabric. This means that large Asian carriers will be able to easily access thexchange and participate in the global minutes spot market. Arbinet-thexchange’s EDP switch is located at 611 West 6th Street in Los Angeles.
“This gives our 135 members access to three of the world’s leading telecom centers, and access to over 80% of the world’s off-net traffic,” states Mr. Hockemeier. “The addition of this strategically located EDP will further develop liquidity on key Asian routes.”
Arbinet-thexchange has created the spot minutes market in telecommunications, currently trading over eight million minutes per day, or 3 billion minutes per year. Members interconnected in North America and Europe have been successful in enhancing their margins as a result of their use of thexchange. 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 reducing losses from buyer bad debt. Both reduce network and administrative cost and complexity.
“Our third quarter trading volumes grew 53% over the second quarter. This rapid growth in today’s depressed telecom market demonstrates that our service is creating real value for our members and gives us the confidence to expand our business,” adds Mr. Hockemeier.
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.
Thexchange’s 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.
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