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Arbinet-thexchange debuts advanced calling code management for members to solve multi-million dollar industry problem

NEW YORK – January 12, 2001 – Arbinet-thexchange, the full service trading solution for buyers and sellers of telephony bandwidth, has implemented an advanced international calling code management program on thexchange. Thexchange is averaging over 255 changes in international codes each month due to deregulation worldwide and explosive growth in wireless services. This program addresses the potential financial impact of code omissions and errors for thexchange members. Financial losses occur when carriers cannot terminate calls to new codes, undercharge customers for premium services, or operate with non-competitive cost structures on routes due to lack of information about low cost termination options. Arbinet-thexchange’s trading platform rationalizes data from over 600 sources, including our 100+ members, government regulatory agencies, PTTs and other sources worldwide to define more than 4,000 precise breakout codes to 700 destinations globally – more than twice the number used by most carriers.

Thexchange estimates that calling code confusion currently costs the world’s telecom carriers hundreds of millions annually. This situation is becoming more difficult for carriers to manage as the number of network operators continues to increase as countries deregulate and encourage competition. This is giving rise to increasing numbers of calling codes and tariffs for fixed, mobile and audio text services.

Code errors cause carriers to lose money for three main reasons. First, carriers often cannot terminate calls to recently implemented codes globally. Second, many do not go to the trouble to break out city destinations from “proper” codes (a “proper” code allows a carrier to complete calls within an entire country, but typically at a higher cost than city breakouts). The result is buyer pays more than necessary for call terminations. Third, many carriers routinely send high priced mobile traffic over standard agreements hoping calls will be completed at the lower priced fixed termination rate. The seller that accepts this traffic loses money-in most cases at least $0.10 per minute.

Thexchange has developed the industry’s most up-to-date and comprehensive code intelligence, which is revised bi-weekly and is available to members. This data is used to define markets, and to program thexchange’s trading engine and switching platform to ensure that buyers and sellers match up exactly on the specific types of service they agree to buy, sell and deliver on thexchange. This has several key benefits for members:

Buy side: Arbinet-thexchange lowers a buying member’s cost by filling orders in real time at the per-call level, with the lowest cost termination available in the market at the specified price ceiling and quality parameters. Because codes are matched by proprietary software at the per-call level, thexchange is able to identify and route individual calls to specific destinations globally onto special low-cost termination breakouts posted by selling members. For example, Arbinet-thexchange recently enabled a member to breakout its aggregate India traffic into city terminations, immediately saving the member $3,290 per T-1 equivalent of traffic per month.

Sell side: Arbinet-thexchange insulates a selling member from the financial risk of code mismanagement and fraud. Thexchange’s software again examines codes at a per-call level and will only allow traffic that exactly matches a specific sell order a member has posted in the market to be sent onto the selling member’s network. Calls destined for higher tariff breakouts such as mobile codes are blocked unless the selling member has entered a specific ask order for this route. For example, a Tier-1 carrier that recently joined thexchange decided not to post sell orders for mobile code termination to European destinations. This member is now able to post very competitive rates for standard fixed termination, leveraging it’s extensive international infrastructure, without having to build in an allowance to cover the cost of any high priced mobile calls that may be routed onto its network by buyers.

“The global telecommunications market is becoming much more complex as a result of the explosion of new carriers and codes unleashed by deregulation,” stated Curt Hockemeier, Arbinet-thexchange President and CEO. “Developing the world’s best international calling code intelligence is core to what we do. It allows us to protect sellers through price and code differentiation and at the same time deliver the lowest prices to buyers by automatically routing to city breakouts where they exist.”

Arbinet-thexchange has produced a detailed white paper that examines the complexities and risks associated with managing calling codes in today’s deregulated global telecom marketplace. For a free copy please e-mail a request including your name, organization and title to Jan-Joost Rueb, thexchange’s Manager of Information and Trading Products at [email protected].

About Arbinet-thexchange

Arbinet-thexchange is the full-service, online exchange for on-demand transactions, automated physical delivery and settlement of trades of telephony bandwidth. Thexchange is neutral, favoring neither buyers nor sellers, and allows participants to trade anonymously. Automated delivery is accomplished by employing advanced trading software and a set of patented processes to link the web-based trading platform with carrier-grade telecommunications switching equipment. Arbinet-thexchange handles all invoicing, collection and payment for trades effected on its exchange and provides continuous monitoring and online rating of the service quality of each seller’ s network.

Arbinet-thexchange estimates the total global market for telephony bandwidth measured in minutes at $706 Billion in 2000. This market is characterized by both falling prices and a high level of SG&A; expense, which at 25% of revenues is 9% higher than the U.S. corporate average. Use of Arbinet-thexchange’s full-service, automated trading solution helps members cut costs and maintain profitability by providing the opportunity to generate incremental revenues, as well as lowering the cost, risk and transaction time required to complete transactions for telephony bandwidth. For more information, visit Arbinet-thexchange at

120 Albany St. Tower II, Suite 450, New Brunswick, NJ 08901
phone: 732-509-9100, fax: 732-509-9101, website:

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