Arbinet-thexchange Proves Value Membership and Traffic Skyrocket, Trading Exceeds One Billion Minute Annual Run Rate
NEW YORK – April 19, 2001 –
The 130 members of Arbinet-thexchange, the full-service trading solution for buyers and sellers of telephony bandwidth, are now trading minutes at a 1.2 billion minute per year clip. Thexchange now processes over 300,000 trades per day.
“Arbinet-thexchange built its model around providing value to members,” comments Curt Hockemeier, Arbinet-thexchange President and CEO. “We’ve had an obsessive focus on providing solutions for the wholesale minutes business because we believe this is where we can add value for our members today. We allow carriers to buy and sell network capacity on an as-needed, real-time basis, and get paid within 15 days. In light of today’s challenging telecom market, the value proposition of our service has been adopted by more and more carriers striving to strengthen and enhance their wholesale minutes business.”
So much so, in fact, that Arbinet-thexchange has seen membership and adoption of thexchange skyrocket. Growth in trading volume has averaged over 30% month over month since thexchange turned up its carrier-grade platform in August 2000.
“Arbinet-thexchange is a remarkable enhancement to our business,” comments Mark Nichols of Dialpad Communications, a VoIP carrier based in Santa Clara, CA. “We’ve had tremendous success. Since joining Arbinet-thexchange six months ago, we have saved close to one million dollars.”
Sellers benefit from the ability to sell capacity and manage their risk exposure. Hockemeier remarks, “Using thexchange brings a whole new dimension to the wholesale capacity business for our members. They can sell excess network capacity and receive prompt payment, which is crucial at a time when many carriers are defaulting and leaving sellers holding the bag.”
Hockemeier concludes, “Our automated wholesale distribution platform helps solve the two biggest challenges in the telecom industry today, weakening revenues and inefficient cost structures. The market agrees and the result is the first real liquid exchange for telecommunications capacity.”
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
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com