Arbinet-thexchange completes agreement with GE Capital Commercial Services to deliver credit risk assurance and accelerate cash flow for bandwidth exchange members
NEW YORK – December 12, 2000 –
Arbinet-thexchange, the full-service trading solution for buyers and
sellers of telephony bandwidth, today announced an agreement with GE Capital
Commercial Services that provides thexchange with global credit risk management
services and a variety of financing and back office support services. This
facility supports thexchange’s compelling value proposition-providing a centralized
e-commerce service that integrates the trading and real time delivery of bandwidth
capacity through thexchange’s switching infrastructure. This facility allows the
avoidance of bad debt risk for sellers, options to accelerate cash flow for
selling members and a range of payment timing options for buyers.
Financial strength and high volume settlement capability is required because
thexchange acts as a full-service centralized solution that replaces laborious
bilateral wholesale bandwidth transactions. Thexchange platform dynamically links
an on-line marketplace with a physical delivery infrastructure and clearing and
settlement systems. Thexchange operates a true many-to-many style commodities
exchange in which any single buy order may be filled in real time from multiple
sellers according to market dynamics.
“GE Capital understood right away what we were trying to do, and has developed an
integrated set of financial services that really expands our value to our members.
Thexchange had already automated the negotiation and physical delivery services of
our marketplace. GE Capital is enhancing the automation of our credit risk management
and financial settlement services, completing our end-to-end e-commerce solution,”
stated Curt Hockemeier, Arbinet-thexchange President and CEO. “This provides a means
for our members to increase network utilization and reduce sales and marketing, operational,
bad debt and capital costs at a juncture when telecommunications industry earnings are
under heavy siege.”
“Thexchange has been able to develop a very advanced e-commerce application
because it has been able to integrate the physical delivery of bandwidth via switching
and routing equipment with an online marketplace,” stated Joe Krum, President of GE
Capital Commercial Services. “We are delighted to be involved in enhancing the credit
risk management and financial settlement services that allows thexchange to safely scale
its role as the counter party to all transactions, completing this full-service offering.”
About
GE Capital
Through its Commercial Services group (www.geccs.com), GE Capital is a leading global
provider of working capital financing, accounts receivable risk management, and related
back office services to clients in both electronic and conventional business-to-business
supply chains.
GE Capital, with assets of more than $345 billion, is a global, diversified financial
services company with 28 specialized businesses. A wholly owned subsidiary of the General
Electric Company, GE Capital, based in Stamford, Connecticut, provides equipment management,
mid-market and specialized financing, specialty insurance and a variety of consumer products
to businesses and consumers around the world. General Electric is a diversified manufacturing,
technology and services company with operations worldwide.
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 www.thexchange.com.
120 Albany St. Tower II, Suite 450, New Brunswick, NJ
08901
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com
