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  STC Associates
  Carolyn Robertson
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Arbinet-thexchange Introduces Inter-Exchange Trading Between London and New York

NEW YORK – July 20, 2001 – Arbinet-thexchange, the full service trading solution for buyers and sellers of telephony bandwidth, expanded its spot minute market this week when it activated a UK-based switch, allowing members to trade in the spot market on either side of the Atlantic without major investments in infrastructure or personnel. Members can now choose a class of service that allows them to restrict trading to the Exchange Delivery Point (EDP) where they are physically interconnected, or trade with members at both the London and New York EDPs.

The EDPs in London and New York are powered by software from a central location and allow trading in the spot minutes marketplace regardless of a member’s point of interconnection with the switching fabric.

“To date, most members on thexchange have connected with us in New York,” states Curt Hockemeier, President and CEO, Arbinet-thexchange. “However, increased European demand pushed us to quickly activate our London switch — a Nortel GSP located at 12/18 Paul Street – and give members access to two of the world’s leading telecom centers, which touch 60 percent of worldwide traffic.”

In the following examples, members are using thexchange to restore margins in their minutes trading business:

  • One large buying member’s infrastructure uses older switches that can’t support the complex breakout routing required to achieve cost leadership in today’s deregulated telecoms markets. Thexchange’s automatic Least Cost Routing (LCR) feature sends each call to its specific breakout destination via the lowest cost route available on the spot market, actively managing quality to surpass a specified target. This member’s traffic all passes across one interconnect, without its operations group needing to perform multiple routing changes. The system also consolidates all the billing for these transactions onto one bimonthly invoice.

  • A large selling member has an extensive network in Europe, but no significant infrastructure or sales presence in North America. It anonymously offers its network for sale on thexchange without needing to deploy a switch or sales effort in the Western Hemisphere. The system also consolidates billing, manages buyer credit risk and sends one prompt biweekly settlement payment to cover sales to a diverse market of buyers.

  • In another case, retail consumers originate calls using a member’s PC-based software application. The calls to international destinations are sent to thexchange using Voice over Internet Protocol (VoIP) technology. This traffic is passed through one of thexchange’s VoIP gateways and terminated via the spot market using the automatic LCR feature. This frees the member to focus on consumer retail marketing, by outsourcing routing and cost of service management.

About Arbinet-thexchange

Two processes central to all telecom companies are selling access to their networks and routing off-net traffic to destinations worldwide. Arbinet-thexchange has created the spot market and designed and built the world’s most advanced system to automate anonymous minutes trading between telecom companies. The world’s leading telecom carriers use this system to perform dynamic least cost routing via the spot market to reduce their cost of service and expand revenues by reaching new markets without extensive network build out.

Thexchange’s system automates sales and purchase order execution, complex calling code matching, call routing to specific breakout destinations and manages the quality of service of traded capacity. The system also handles the credit risk management, billing and commercial settlement aspects of these transactions. Currently over 130 members are using thexchange to process calls at well over a billion minute per year run rate. Arbinet-thexchange also develops and distributes AXCESSCODESM international calling code breakouts, the standard market reference tool. 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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