Arbinet adds London switch for bandwidth exchange

Business-to-business telecommunication bandwidth exchange Arbinet-thexchange activated a U.K.-based switch this week, allowing members to trade in the spot market for telephone minutes in both London and New York, the company announced Thursday.

Essentially a commodity market for telephone lines, Arbinet's online exchange anonymously matches a buyer's bid for network capacity on a specified route with the lowest priced capacity offer for the route posted by a seller, subject to service quality specifications. Thexchange, as it is called, is designed to permit network carriers to sell off their excess capacity quickly.

The new switch permits exchange members with extensive networks in Europe to offer their networks for sale on thexchange without needing to deploy a switch or sales effort in New York, where Arbinet's other switch operates.

Arbinet is one of several bandwidth exchanges -- Enron Corp. offers exchange services, and Band-X Ltd. operates an exchange in London, New York and other locales.

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