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  Carolyn Robertson
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  [email protected]


Arbinet Chooses Nortel Networks’ Global Services Platform for Expansion of the Arbinet Global Clearing Network

GENEVA, Switzerland, — October 13, 1999 — Arbinet Communications, Inc., the world’s premier exchange for telecommunications capacity, today announced that Arbinet has selected Nortel Networks’* DMS-Global Services Platform* (GSP) for the carrier-grade expansion of the Arbinet Global Clearing Network™ (AGCN™). Terms of the contract will provide Arbinet with the option to purchase and rollout no less than three Nortel Networks GSPs–enabling Arbinet’s expansion into key geographic markets worldwide.  This contract will supply Arbinet with more than 900,000 ports for routing voice traffic when fully configured.

“We are excited about Arbinet’s efforts towards enabling the real-time buying, selling, and delivery of switched voice minutes between global carriers,” said Bill Hawe, CTO, Nortel Networks.  “We believe the exchange concept will revolutionize the business process among communications providers. This contract positions both Arbinet and Nortel Networks at the forefront of a new era in business-to-business e-commerce in telecommunications.”

AGCN™ provides international telecommunications carriers with a real-time, Internet-based trading exchange.  This switch-based clearing network allows carriers to route calls for the lowest price to any destination worldwide.  Arbinet’s centralized switching infrastructure allows carriers to optimize their network capacity, maximize their interconnectivity with other carriers in real-time, dynamically least cost route on a per-call basis, and minimize network operating costs.  Arbinet currently routes voice traffic for a large number of major international carriers worldwide.

“As we rapidly build critical mass on our exchange, we believe that working with Nortel Networks will provide Arbinet with scalability as we enable hundreds of carriers worldwide to actively buy and sell network capacity in a real-time, fully automated environment,” added Alex Mashinsky, Chairman and Founder of Arbinet.  “Working with Nortel Networks will help to further Arbinet’s leadership position as we establish ourselves as the NASDAQ-style franchise for the buying and selling of global telecommunications capacity.”

About Nortel Networks

Nortel Networks ( delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony, and IP-optimized networks.  Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.  Nortel Networks’ common shares are listed on the New York, Toronto, Montreal and London stock exchanges.  Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 70,000 employees worldwide.

About Arbinet

Arbinet ( is the world’s leading Internet trading exchange and switch-based clearing network for global telecommunications capacity. Arbinet routed over 174 million minutes for international carriers in 1998, which it estimates represented over 80% of all exchange-traded minutes traffic for that year. The Arbinet Global Clearing NetworkTM (AGCNTM) is presently clearing and settling minutes for all types of communications companies including Internet Telephony Service Providers and major carriers. Founded in 1994, the company has 52 employees and is headquartered in New York with offices in Tokyo and Hong Kong. AGCNTM was recently awarded Internet Telephony magazine’s prestigious Editor’s Choice Award for 1999 and named as one of the Top 500 Companies by Telecom Business Magazine, in addition to receiving the World Communication Award for Technological Foresight at Telecom ’99.

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