Arbinet-thexchange opens London facility, bringing real-time bandwidth trading to European telecoms
LONDON/NEW YORK – November 29, 2000 –
Arbinet-thexchange, the U.S.’s premier
on-line bandwidth trading exchange, today announced the launch of a direct connection
center in London that will enable UK and European telecommunications carriers to trade
bandwidth online, realizing new revenue opportunities and improving profit margins.
With the opening of Arbinet-thexchange’s London Exchange Delivery Point (EDP), British
and European telecoms operators will be able to directly connect from London to
thexchange’s advanced, automated trading platform. They will be able to buy and sell
capacity, in real-time, with the current members of thexchange-over 100 of the world’s
leading telecommunications companies. Arbinet-thexchange’s advanced infrastructure
transforms the current telecoms exchange marketplace.
Arbinet-thexchange operates the only full-service, e-commerce platform that dynamically
links an on-line telecommunications marketplace with a physical delivery infrastructure and
integrated clearing and settlement systems. In doing so it replaces laborious bilateral
wholesale bandwidth transactions. This means:
Real-time capacity trading, with transactions completed and traffic flowing right
away
Dynamic, real-time pricing, so buyers can continually optimize their price/quality
requirements
Automated credit risk management to minimize members’ bad debt exposure
Centralized, automatic billing for all parties
The elimination of the cost and time of traditional wholesale capacity negotiations
and transactions-which on average take 28 weeks to complete
Arbinet-thexchange’s new London EDP is located in central London with immediate access
to major fiber carriers. Today, seven European carriers are already members of
thexchange, and interconnect at the New York EDP with more than 93 other members from
around the world.
Arbinet-thexchange has invested more than US$30 million to implement the first
automated, full-service bandwidth trading solution that links a member’s buy/sell
transactions to the dynamic delivery of the traded capacity. The system is designed to
accept the addition of new EDP modules with an emphasis on scalability and reliability. The
success of thexchange’s infrastructure technology and market adoption in New York has
triggered the first step in the company’s world wide geographic expansion.
“With the opening of our new London EDP, carriers can now choose to interconnect with
thexchange’s physical delivery infrastructure in either London or New York,” stated Curt
Hockemeier, Arbinet-thexchange President and CEO. “They can buy and sell, deliver and
settle transactions for telephony capacity with thexchange’s 100 plus existing members
from either location. This expansion makes it easier for members to join and enjoy
opportunities to increase revenues and reduce costs by trading on the world’s only full-
service automated bandwidth exchange.”
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 US$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
