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Press Release


  STC Associates
  Kristen Massaro
  212-725-1900 ext. 204
  [email protected]

Arbinet Launches PeeringSolutionsSM for US Domestic Market

Seven US Competitive Operators Agree to Exchange and Settle Domestic Traffic

NEW BRUNSWICK, NJ, February 27, 2007 – Arbinet-thexchange, Inc. (Nasdaq: ARBX), the leading provider of solutions to simplify the exchange of digital communications, announced today introduction of its managed paid PeeringSolutions offering, customized for the US Domestic market at the COMPTEL Spring 2007 Convention & Expo in Las Vegas. Initial participants include XO Communications, PAETEC Communications, InfoHighway Communications, BBCOM, RIO Communications, plus two unnamed service providers.

PeeringSolutions allows US Domestic carriers, including competitive local exchange carriers (CLECs), cable and mobile operators, to peer and exchange traffic with each other regardless of their network technology. Arbinet queries each inbound call attempt against a database supported by the SPIDER Registry and sends routable calls via its switches to terminating Members based on instructions from this database. Settlement for these calls is determined and agreed upon by the providers, with a variety of settlement options including traditional paid settlement and bill and keep agreements, allowing carriers to maintain full control of the economics of their business.

"Arbinet’s PeeringSolutions provides efficient call-by-call routing between Members supported by ANI/DNIS screening and jurisdictional rating,” stated Curt Hockemeier, President and CEO of Arbinet. “Additionally, these carriers gain access to Arbinet’s 700+ global Members, allowing them to exchange traffic with international providers and smoothly transition to VoIP peering at their own pace.”

Customized features for the PeeringSolutions US Domestic offering include:

Joe Ambersley, Executive Vice President, PAETEC Communications and Vice Chair/Treasurer of COMPTEL commented, “PeeringSolutions gives a competitive carrier a simple way to establish and manage paid peering relationships with other carriers in the U.S. and internationally. The carrier maintains control of its payment terms for terminating minutes and benefits from the high call quality generated by direct routing to and from other paid peering members. In addition, the competitive carrier eliminates intermediary carrier termination fees, improving its cost structure. PeeringSolutions also eliminates expenses associated with carrier access billing (CABS) and provides interoperability between TDM and VoIP networks, delivering the benefits of VoIP peering today without requiring costly network upgrades.”

Edwin Lara, Account Executive of Verizon Dominicana states, “We are currently peering through Arbinet and selling access to our network to Arbinet’s community of global peering partners. This solution has increased our revenues with excellent call quality and simple, streamlined billing and settlement. We are pleased to see continuing growth of Arbinet’s peering community, as we will benefit from increased traffic and gain the ability to terminate our customers’ calls to new networks around the world.”

Arbinet’s global peering community now includes 141 million numbers from 55 service providers including Telecom Argentina, Telefonica Argentina, Columbus Communications Jamaica, Telefonica Chile, Telefonica Peru, Telmex Chile, and Verizon Dominicana.

About Arbinet

Arbinet solutions simplify the exchange of digital communications in a converging world. These include exchanges, a transaction management platform, and managed services which streamline performance and improve profitability for Members.

Arbinet’s 900 voice and data Members, including the world’s 10 largest international carriers, use Arbinet’s Internet based electronic platforms to buy, sell, deliver and settle transactions valued at about $500 million in 2006. These Members include fixed, mobile and VoIP carriers, ISPs and content providers from more than 60 countries who exchange voice, data, content and value added services.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements about the Company’s strategic and business plans. Various important risks and uncertainties may cause the Company’s actual results to differ materially from the results indicated by these forward- looking statements, including, without limitation: the effects and outcomes of the Company’s exploration of strategic alternatives; the ability of the Company to integrate its acquisition of Flowphonics Ltd., whether any of the strategic alternatives will result in enhanced shareholder value; members (in particular, significant trading members) not trading on our exchange or utilizing our new and additional services (including Data on thexchange, DirectAxcess(SM), PrivateExchange(SM), AssuredAxcess(SM), and PeeringSolutions(SM)); continued volatility in the volume and mix of trading activity (including the average call duration and the mix of geographic markets traded); our uncertain and long member enrollment cycle; the failure to manage our credit risk; failure to manage our growth; pricing pressure; investment in our management team and investments in our personnel; system failures, human error and security breaches which could cause the Company to lose members and expose it to liability; and the Company’s ability to obtain and enforce patent protection for our methods and technologies. For a further list and description of the risks and uncertainties the Company faces, please refer to the Company’s Amendment No. 1 to its Annual Report on Form 10-K/A and other filings, which have been filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements; whether as a result of new information, future events or otherwise and such statements are current only as of the date they are made.

120 Albany St. Tower II, Suite 450, New Brunswick, NJ 08901
phone: 732-509-9100, fax: 732-509-9101, website:

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