Up 90% in last 2 days...gotta love it!! Arbinet hasn't even FILED their S-1 yet, so this is a much earlier reaction from the market than I expected.
Snip from 2/17/00 Giga report: "Two Streams of Hub Site Activity in Communications
Industries":
Two separate types of business-to-business (B2B) hub site activities are taking place in the communications
industry. Communications companies are building hosted e-procurement services and partnering with
metamarketplace owners, such as Ariba (www.ariba.com) and Commerce One (www.commerceone.com),
to offer their corporate customers new value-added services (see Table 1). Also, online marketplaces are
emerging to enable buyers and sellers to exchange communications equipment and services.
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RateXchange Inc. (www.ratexchange.com) operates a broker hub called Real-Time Bandwidth eXchange (RTBX) in the telecommunications industry. Via RTBX, buyers and sellers of
telecommunications capacity participate in an online commodities exchange. RTBX is
anonymous: all traders have equal and open access to price information. Trading partners use a
standardized contract that incorporates credit, settlements, delivery and billing.
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(others in this category, discussed in the report: VerticalNet's wireless networks online and wireless design online; telezoo.com; telebizz.com (Newtron and Deutche Telecom collaboration); Simplexity.com; and Telephone.com)
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Recommendations
Among communications industry hub sites, RateXchange has made the most significant investment and has
the best chance of success. Not only does the company match buyers with sellers, as others do, but it also
facilitates real-time interactions and has established delivery hubs in order to facilitate physical delivery of
traded bandwidth. RateXchange tests networks, prequalifies route quality, audits performance and monitors
delivered routes to assure compliance with the service-level agreement (SLA) contained in the standardized
contract. The initial products available on RTBX include one-month spot and one-year forward bandwidth
contracts between Los Angeles and New York, cities where RateXchange's delivery hubs are located. Giga
expects to see RateXchange add more products in the coming few months.
Communications companies and communication services buyers that are looking for a real-time exchange
should consider RateXchange. Communications companies that are looking for additional sales channels
should consider the VerticalNet sites, telezoo.com, telbizz.com and Simplexity.com (and Telephone.com
when it goes live). Communications buyers that need only an RFP/RFQ capability, not a real-time exchange,
could benefit from evaluating Wireless Networks Online, telezoo.com, telbizz.com and Simplexity.com. |
