Arbinet Member Uses PrivateExchange^SM to Interface with Next Generation Network (NGN) Bilaterals

As TDM gives way to VoIP, a leading European competitive operator and Arbinet Member experiences difficulties managing its bilateral business. In the past, a bilateral was a simple way for this Member to exchange stable, long-term volumes of minutes with a major partner. This Member has found that PrivateExchange offers the perfect way to address the complications of establishing bilaterals in an industry evolving from TDM network technology to VoIP technology.

Business Requirement
The Member is currently unable to directly interconnect with carriers whose networks are built using next generation network architecture, based on VoIP technology. This Member would like to establish interconnections with several leading NGN carriers, while retaining features of traditional bilaterals such as it’s ability to control it’s own commercial agreements and settle directly with its partners.

The Member required a single platform that would scale to support all its new bilaterals with NGN carriers. This Member found an innovative solution using Arbinet’s PrivateExchange service.

Member’s Experience with PrivateExchange
The Member established a PrivateExchange and then invited its NGN partners to interconnect at Arbinet. Arbinet converts the traffic between network technologies and provides accurate, timely reporting and call detail records (CDRs) to both parties. This gives each side a neutral, central source of information for traffic routed via Arbinet. This Member currently operates two NGN bilaterals, routing more than 100,000 minutes per day, on PrivateExchange since turning up the solution in January. The Member is in the process of establishing additional NGN bilaterals via PrivateExchange.

Additionally, the Member was able to enjoy the cost savings of a one-to-many interconnection through PrivateExchange, which typically reduces expense through better utilization.

Results
This Member has been able to overcome a significant network interoperability barrier, avoid a capital investment in equipment and retain its preferred bilateral-type agreements with large partner carriers with Arbinet’s PrivateExchange solution.

The PrivateExchange management solution simplifies carrier sales management and enables Members to reap the benefits of trading on a single interconnect. A carrier invites its partners to PrivateExchange and directly manages its commercial relationships and rate negotiations while Arbinet manages routing, reporting and performance. The Member has the option to manage settlement directly or via Arbinet.

PrivateExchange Benefits Summary

• TDM to VoIP protocol conversion
• Streamlined back-office costs
• Interconnection delays eliminated
• Optimized margins
• Relationship control