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ATX creates a sustainable online voice spot market in Australia

  • 12 May, 2004 13:00

<p>The Australian Telecoms Exchange (ATX) creates a sustainable voice spot market in Australia</p>
<p>Sydney, 10th May 2004:</p>
<p>Trading on Australian Telecoms Exchange’s (ATX) bandwidth exchange has reached a critical mass, creating a strong and sustainable voice spot market in Australia.</p>
<p>Managing Director of ATX, Nick Haddad, said today the value of a bandwidth exchange to the telecommunications industry in Australia has been confirmed with the participating carriers and service providers having traded millions of voice minutes through the ATX marketplace since it commenced in July last year.</p>
<p>With ATX’s Sydney exchange now being commissioned five new trading partners - three service providers and two carriers – are joining the voice spot market. This is expected to generate a significant increase in trading volumes on ATX over the coming months.</p>
<p>Mr Haddad said ATX has been extremely thorough in developing and installing its systems to ensure it provided a tier one carrier grade service to all customers. This had caused a later than anticipated opening of the Sydney exchange, and it is now expected to come online in June with robust systems in place.</p>
<p>“We remain focussed on the voice spot market as our primary trading stream, and are developing additional services for customers such as historical traffic and quality measurements, online access to billing and accounting information, and the development of the ATX Index which will show trends in market prices,” he said.</p>
<p>“The market for data traffic remains in the development stage, and we are watching the effects of the recent wholesale price reductions by major carriers. Data traffic is growing, but the price reductions are moving equally fast, so we are re-evaluating our business model at the moment.</p>
<p>“We are seeing increased acceptance of VoIP traffic, particularly for national calls and backhaul traffic and ATX has the required technology in place for this transition by the market. However we believe the need for circuit switched technology will remain for some time, particularly for overseas destinations.”</p>
<p>For carriers, ATX acts as an aggregator of smaller service providers, keeping the credit risk of these players at arms length and allowing carriers to access new streams of traffic volumes.</p>
<p>ATX also offers carriers a new method of improving network utilisation. By knowing the purchase price for each destination, carriers can judiciously win specific destinations on the ATX spot market and increase their traffic to meet volume purchase agreements, or off-load excess capacity on specific links. Analogous to hydroelectricity power generation, the bandwidth exchange can assist managing the peaks and troughs in voice traffic demand without disrupting the “brown coal” type wholesale arrangements already in place between the major carriers.</p>
<p>Through ATX, service providers can increase their buying power and get access to many carriers through one connection. Typically many service providers keep their existing carrier to terminate their primary traffic, and use ATX for their secondary destinations.</p>
<p>The web site at www.atx.net.au gives access to the standard market rates and will soon offer customers secure access to billing information, historical traffic volumes, and quality measures for each destination.</p>
<p>-- ENDS –</p>
<p>Media enquiries:
Bob Pritchard
Communecom Strategic Communications
02 9960 6000
0413 825552
bob.pritchard@communecom.com.au</p>
<p>About ATX</p>
<p>Australian Telecoms Exchange Pty Ltd uses state of the art telecoms and web based technology to operate the only commercial, independent bandwidth exchange in Australia.</p>
<p>ATX is offering wholesale trading of voice minutes at daily market rates and is currently developing wholesale internet trading and point-to point bandwidth trading.</p>
<p>The company is backed by experienced investors with considerable experience in the financial services and telecommunications industries.</p>
<p>How ATX operates</p>
<p>ATX cuts the time and cost of trading bandwidth, making it much easier and more efficient for both buyer and seller.</p>
<p>The voice spot market established by ATX is at www.atx.net.au and trades are completed through its carrier-grade switches located at the Stock Exchange Building in Melbourne and the now being commissioned Sydney exchange located near the Southern Cross cable header at the carrier-neutral Equinix premises.</p>
<p>All ATX pricing has a flat margin across all destinations which allows carriers to derive the purchase price of any destination. Using a reverse auction style of bidding, carriers can win specifically chosen destination on routes where they want to increase capacity utilisation.</p>
<p>To maintain a fully automated system essential for the highest standard of accuracy and efficiency, ATX has adjusted the way it works to seamlessly interface with each carrier’s methods, thus creating substantial efficiencies in the market.</p>
<p>Ultimately ATX will be pushing for its proven standard approach to apply across all bandwidth trades, thus helping build a fluid voice spot market and further increase efficiency in the wholesale market.</p>

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