Online Bandwidth Trading Goes Live
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[May 22] Australian telecommunications bandwidth exchange eSwitch has gone live today, with the announcement that its trading systems are now operational.
Buyers and sellers of telecommunications capacity who become members of eSwitch can now view and trade voice minutes on the online spot market, which was established to provide an independent and open market for trading telecommunications capacity.
"The creation of an independent and anonymous market place for bandwidth is a strategically important step for the Australian telecommunications industry," said eSwitch managing director Nick Haddad.
"It introduces significant advances in flexibility and competition for all players. Bandwidth deals do not have to be locked in months at a time, or months in advance - the eSwitch exchange allows buyers and sellers to trade the capacity they want, when they need it, and at the market rate available at that time," he said.
Transactions occur on the eSwitch Web site where prices for bandwidth are anonymously posted. When a sale is finalized, a centrally located eSwitch exchange ensures delivery of the bandwidth is immediate. eSwitch is currently trading in minutes for long distance phone calls, but will expand into other areas of bandwidth and telecommunications services in the near future.
eSwitch expects its service will improve the flow of information between carriers and service providers and introduce an efficient method for the trading of bandwidth.
According to Haddad, this process has traditionally been a complicated, time consuming and costly exercise for both carriers and service providers based on individual one-on-one contracts that varied on a case by case basis. "The time and effort required to establish multiple trading arrangements between service providers and carriers can now be reduced significantly," he said.
eSwitch's revenue comes from a small commission taken from each transaction. The company said it has struck agreements with a number of telecommunications companies who will have the opportunity to participate in real time online trading, and will seek more participants to increase the depth and efficiency of the marketplace.