Telecom bandwidth index on the way
News Story from Telephony Magazine, April 11, 2000
internettelephony.com
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What did China open at?
Telecom bandwidth index on the way
BRIAN QUINTON
Dow Jones Newswire, a subsidiary of the Dow Jones Corp., will launch a commodity index for those interested in tracking telecom network bandwidth prices.
The new index, which probably will make its appearance in May, will be produced in conjunction with bandwidth market maker RateXchange and will track three global bandwidth routes: a trans-Pacific route, a trans-Atlantic one and one spanning North America.
RateXchange will collect the data from its Real-Time Bandwidth eXchange, an online business-to-business market for telecom capacity, and compile the indices, which will be founded on the volume-weighted contract prices at which transport over those routes is being offered to wholesale carriers. Prices will be updated weekly, quoted in U.S. dollars and published through Dow Jones Newswires? real-time news services.
Presumably, retail service companies including competitive local exchange carriers and ISPs, then will apply those price indices when they negotiate access to long-haul networks.
RateXchange will also use the indices as a benchmark to support trading on its real-time bandwidth exchange, which company officials expect to start next month. Last month, the company received $32.7 million toward the completion of its proposed exchange in a funding round for which Soros Fund Management acted as adviser. |
