Online bandwidth exchange makes its debut
A new minutes and bandwidth exchange has been set up in Dubai, offering an Internet-based trading floor for telecoms' networking capacity.
Allocation of underused bandwidth is not something you might instantly identify as a problem for the telecommunications industry, but, according to International Telecommunications Clearing Corporation (ITCC), it is, and much can be done to increase efficiency.
The Dubai-based company has just set up a new minutes and bandwidth exchange, offering an Internet based trading floor for the buying and selling of bandwidth between telecoms.
"The massive growth of telecom companies has made it necessary to have a third party to help companies utilise capacity and therefore increase profit," said Bonaventure C.K. Wong, CEO, ITCC. "Thousands of companies now regularly look to buy minutes and bandwidth at lower cost and overhead. ITCC's Web-based exchange will allow organisations to improve their profitability and significantly reduce their cost of doing business."
The company will operate the system over its global network, with hubs in London, Hong Kong, Los Angeles, New York and Miami, which are due to be set in place by March 2001. Once connected to an ITCC Exchange Point (hub), carriers can buy or sell minutes and bandwidth using the Web-based trading floor. Wong revealed that talks were being held between themselves and Etisalat regarding the possibility of the UAE telecom gaining greater bandwidth through the system.
"Yes, we are talking to Etisalat, and others. Any one who has a network or is a telecoms provider is a potential customer," said Wong. "Our approach, which is essentially providing a business-to-business marketplace for telcoms to acquire capacity, will drastically minimise companies' operating costs. Currently, reaching agreements among carriers for buying and selling of minutes and bandwidth can take months to complete, causing carriers to lose millions of dollars in potential business as their networks sit idle. The development of ITCC's minutes-based trading floors signifies a positive change from the lengthy and inefficient trade process to an automated, real time trade process."