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To: IndioBlues who wrote (1983)5/20/1999 10:17:00 PM
From: Frank A. Coluccio  Read Replies (1) | Respond to of 3873
 
Indio, interesting release.

Bandwidth has been swapped on the open market as far back as I can recall among carriers, and even some very large users. More recently these processes have been formalized, already, for 3 and up to six and 12 month commitments, typically.

In '95 I recall the first mention of it becoming a future in the open outcry marketplace, along with some other unconventional issues, such as air pollution rights, with actual trading screen apparatus and regs, in a formal setting. Coffee, cotton and photons?

In the past three years, there has been considerable movement in this direction, with several notable exchanges and clearinghouses set up to swap minutes of use where international voice services are concerned, and larger denominations of bandwidth, too. The models and the ideas are there. It's waiting for someone to kick it off big time. Could Enron be the one?

The following is a release that tells another similar story, albeit for lower denominations of use.

Regards, Frank Coluccio
========================
Brokers Trade Voice-over-IP Minutes

By Sheridan Nye and Kenneth Cukier at
CommunicationsWeek International

19-OCT-98

The sustained growth in bandwidth dedicated to voice
over IP has spawned two new exchanges seeking to
provide a trading floor for buyers and sellers of
IP-telephony minutes.

San Francisco-based RateXchange Inc. has carried
offers and bids for voice-over-IP (VoIP) minutes since
February, initially as a low voice-quality option within the
exchange's market for international circuit-switched
bandwidth. But strong growth in VoIP trading volumes
and ever-improving quality prompted the creation of a
dedicated exchange, said Sean Whelan, RateXchange's
founder and president.

Separately, Jeff Pulver, the high-profile Internet telephony
consultant, created The Minutes Exchange (Min-X.com),
a similar virtual commodities market for voice over IP.

Both markets offer an on-line brokerage service allowing
buyers to respond to the anonymous bids placed by
sellers. The parties are then put in contact to finalize
deals.

Managed delivery

While Pulver intends to leave it "up to our customers to
manage the quality of their IP minutes," RateXchange
plans to expand its brokering service for VoIP to
includemanaged delivery within the next year. The
company launched its Real-Time Bandwidth eXchange
for traditional voice minutes last month with switches in
New York and Los Angeles, enabling carriers based in
the two cities to set up and test circuits and to complete
deals within days rather than weeks.

Pulver said he may later expand Min-X.com's scope to
include trading in bandwidth minutes in GSM, cable,
satellite and PSTN traffic.

In the meantime, both Min-X.com and RateXchange have
a major competitor to contend with.

U.S. carrier AT&T this month unveiled the AT&T Global
Clearinghouse service, which will manage routing,
settlements, billing and administration as well as
providing a brokerage for global VoIP minutes. Members
can terminate IP calls on the public telephone network in
the 140 countries reached by AT&T's network.

Pulver welcomed AT&T's move, which he claimed would
not alleviate the need for operators to maintain their
bilateral agreements. "While it's OK for a carrier to
terminate the minutes of Internet telephony service
providers, most carriers won't let just anybody terminate
their minutes," he said.

The announcement marks the global rollout of services
AT&T began earlier this year in Asia, and takes the U.S.
giant into the territory of third party clearinghouses, such
as Princeton, New Jersey-based ITXC Corp.
==========================