212-725-1900 ext. 204
FOR IMMEDIATE RELEASE
Arbinet-thexchange Adds “Peak”, “Off-Peak” Trading, Also Allows
Time-of-Day Routing for Telecommunications Carriers
New York – February 4, 2001 – Arbinet-thexchange, the full-service trading solution for buyers and sellers of telephony bandwidth, today introduced “peak/off-peak” trading on its popular online voice minutes exchange. The new feature allows members to buy or sell the same destination at two different prices, dependant on time of day and/or day of week.
For example, peak rate (weekday business hours) termination to United Kingdom Mobile trades at $0.1195, and off-peak (weekday evenings and weekends) at $0.0980. A carrier that sends 2 million off-peak minutes a month to this destination would save $516,000 a year with this new feature.
Peak/off-peak pricing is one way telecommunications companies create demand for their networks when utilization is otherwise low. Buyers can take advantage of peak/off-peak to reduce their termination costs. Some carriers are not able to peak/off-peak price or route through their switches to take advantage of this opportunity. This Arbinet-thexchange enhancement means its 135 members all now have this capability without expensive switch upgrades.
“Our members are increasingly relying on us to route more of their traffic – in some cases all of their traffic,” explains Curt Hockemeier, president and CEO of Arbinet-thexchange. “We expect Peak/off-peak trading will help them generate more revenue or further reduce their costs.”
Peak/off-peak debuted initially in a number of mobile markets, including Belgium (BEM), Italy (ITM), Netherlands (NLM) and the United Kingdom (UKM). Thexchange will add destinations, notable Mexico, shortly.
“Peak/off-peak trading is part of a larger trend toward improved efficiency and increased complexity in telecom markets,” explains Bob Barbiere, senior vice president of trading at Arbinet-thexchange. “Carriers compete by offering different prices to terminate traffic to breakout cities, mobile and fixed lines and by time-of-day. Shrinking margins have placed greater emphasis on skilled trading and it is much more complicated than it was 15 years ago in the days of government monopolies and fixed tariff pricing. Thexchange is growing rapidly because we let our members simplify the whole process using our automated system.”
Trading volumes on Arbinet-thexchange grew 61% in the fourth quarter of last year, and 53% in the third. Members are now trading traffic on thexchange at an annualized rate of more than 4 billion minutes.
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 135
members are using thexchange to process calls at more than a four 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 www.thexchange.com.
120 Albany St. Tower II, Suite 450, New Brunswick, NJ
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com
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