& cplSiteName &

Ethernet Exchanges Shift From Public to Private

Light Reading
News Analysis
Light Reading
11/6/2012
50%
50%

NEW YORK -- Ethernet Expo 2012 -- Just three years after it was all the rage at Ethernet Expo Americas 2009, the public Ethernet exchange concept has been pushed onto the back burner by the thing it was trying to light a fire under -- long, highly proprietary carrier purchasing patterns.

Instead, as Ethernet Expo Americas 2012 kicks off, Ethernet exchanges are shifting away from being public marketplaces for physical Ethernet interconnection to focus on software-based or cloud-based back-office processing to support privately created interconnections.

“We would not describe ourselves as an Ethernet exchange,” says Paolo Gambini, VP of product management and development at Inteliquent , a statement which shows how much things have changed. Inteliquent started life as Neutral Tandem Inc. (Nasdaq: TNDM), which shortly after its acquisition wholesale operator Tinet in September 2010 described itself as “the largest Ethernet exchange in the world.” (See Neutral Tandem Integrates Tinet.)

Gambini says that merger confirmed Neutral Tandem’s move away from the exchange model, enabling it to leverage Tinet’s wholesale Ethernet platform and its EtherCloud Network-to-Network Interconnection (NNI) platform.

The Neutral Tandem/Tinet merger came at a time when the industry was still excited about the exchange concept, and not long after the model received what was thought to be a major boost from the MEF ’s approval of an Ethernet NNI specification.

“We thought the public exchanges would be a bigger market by now,” says Nan Chen, president of the MEF, and co-founder and president of CENX Inc. , which made its debut as a public Ethernet exchange in November 2009. (See Ethernet Gets a CENX View.) Chen says: “The exchange business has evolved from public operator-neutral exchanges into private exchanges. The public concept till holds great promise, but not as strong as expected. Telecom carrier buying patterns are hard to change. The slow uptake had to do with too many people wanting to sell, not enough wanting to buy.”

"A big reason carriers didn’t buy into the original concept is they didn’t want to open themselves to thousands of potential business relationships; they just wanted a handful of close partners," Gambini adds.

For more, see Page 2

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
The time has come for a telecom app store to save the industry.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 50-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
LRTV Huawei Video Resource Center
The Challenges of Mobile Banking Implementation

5|12|17   |     |   (0) comments


Kamal Quadir of bKash Limited explains the challenges and needs of implementing mobile banking in the Bangladesh market.
LRTV Interviews
Tel Aviv: A Hub of Innovation

5|10|17   |   07:58   |   (0) comments


Light Reading's Ray Le Maistre and Dan Allen discuss the technology innovation, food and amazing sights they witnessed during a recent trip to Israel.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
BSS Is BS, Says KPN Tech Boss
Iain Morris, News Editor, 5/16/2017
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Verizon on M&A: Who Needs a Cableco?
Mari Silbey, Senior Editor, Cable/Video, 5/17/2017
Standardization Needs Room for Innovation
Mitch Wagner, Editor, Enterprise Cloud, 5/17/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.