FOR IMMEDIATE RELEASE
Membership Growth Fuels 5 Billion Minute Run Rate for Arbinet-thexchange
New York, June 27, 2002 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of voice minutes, signed its 190th Member in May. The combination of organic growth and Member growth propelled trading on thexchange to a 5 billion minute/year run rate, 500% growth in just over a year.
In a tough economic market buyers are turning to thexchange to take advantage of price improvement and liquid supply from a diverse base of carriers to a wide range of countrywide, city and mobile destinations. Buying Members typically save an additional 6-20% below their limit buy order when thexchange’s automated breakout routing sends calls to the lowest cost destination that satisfies the Member quality requirements.
"As our membership grows, buyers have been able to take advantage of more quality routes where they can benefit from spot market prices," says Arbinet-thexchange president and CEO, J. Curt Hockemeier. "As an example, in May a Tier-1 Member saved $392,000 on 42 million minutes purchased on thexchange. This 8% savings is typical."
"The seller’s biggest worry is still credit," according to Bill Haner, senior vice president of sales at Arbinet-thexchange, "and the way we mitigate risk is a key advantage for PTTs and carriers worldwide." Thexchange’s CreditWatchsm monitoring system automatically warns and then suspends a Member’s ability to buy when it approaches and then reaches its authorized credit line. "We believe the CFOs of our Member companies appreciate the visibility they get to payment streams through our 15 net 15 settlement terms and our robust credit management system and processes," said Haner.
On a Tuesday in May, a Tier-1 Member sold 1,568,000 minutes to 80 buyers on 3 continents. Thexchange managed the interconnections to these buyers, screened for and secured any credit risk, collected payment, presented one statement and sent one wire transfer to the selling Member.
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 more than 190 Members are using thexchange to process calls at a five billion minute per year run rate. Arbinet-thexchange also develops and distributes AXCESSCODESM international calling code breakouts. For more information, visit Arbinet-thexchange at www.thexchange.com.
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