Light Reading
Neutral Tandem hopes new IT investments will attract Tier 1 providers to its Ethernet peering service

Neutral Tandem Takes on Ethernet Peering

Craig Matsumoto
News Analysis
Craig Matsumoto
4/30/2010
50%
50%

Neutral Tandem Inc. (Nasdaq: TNDM) is taking a Service Provider Information Technology (SPIT) approach to Ethernet peering, vowing that its North American Ethernet Exchange will break new ground in IT tools for carriers.

The approach isn't unique: CENX Inc. appears to be taking the idea even further. But it's particularly important to Neutral Tandem, a nine-year-old company in the crossconnect business, because CEO Rian Wren sees it as the company's ticket to attracting Tier 1 operators and graduating into the IP world.

It's another example of how new types of information technology are becoming crucial in telecom. (See The SPIT Manifesto.)

And Ethernet peering services -- the interconnection points where carriers can hand off Ethernet services to one another -- looks to be fertile ground for more sophisticated customer interfaces.

Neutral Tandem's day job is in the business of transit -- interconnecting CLECs and mobile operators, providing a service that competes with exchanges run by the Tier 1s. But that work is all about phone numbers. Neutral Tandem doesn't want to be left behind as the world goes to IP and Ethernet. So, the company is starting an Ethernet exchange, launching in 14 US cities, probably later this quarter, Wren says. (See Neutral Tandem Plans Ethernet eXchange.)

The exchange will certainly include smaller carriers as customers, but Wren wants the big fish, too. To get them, he thinks he needs that IT overhaul. In fact, IT has made up the bulk of the company's hiring lately, he says.

Neutral Tandem aims to create a platform that will give carriers remote access to Neutral Tandem's network. Carriers would be able to do their own provisioning and even launch their own test signals onto the network.

"What's going to be successful for those guys is if you make these switches look like they're owned by the carriers," Wren tells Light Reading. "I worked for AT&T Inc. (NYSE: T) for 20 years. I know what they want. They want the ability to control and manage everything in this network."

Equinix Inc. (Nasdaq: EQIX), which recently took its competing Ethernet peering service out of beta, isn't giving that kind of freedom at first. But it wouldn't be surprising to see it quickly create strong tools for its carrier customers. (See Ethernet Europe: Equinix Opens Ethernet Exchange Doors .)

CENX, though, appears to be taking the concept further than Neutral Tandem is. The startup aims to simplify, not just the physical hooking-up of services, but the business aspects as well, CEO Nan Chen tells Light Reading in an email. For instance, carriers would be able to bill one another through CENX's service. (See Ethernet Gets a CENX View.)

— Craig Matsumoto, West Coast Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:37:38 PM
re: Neutral Tandem Takes on Ethernet Peering


Tidbit I forgot to include: Neutral Tandem's voice cross-connecting involves an MPLS network, so it's not like they're strangers to that world.  Seems like a good move, for them to get into the Ethernet services market.


CENX's plans do seem more involved than Neutral Tandem's and Equinix's, in terms of how many functions they'll take over from the carriers (billing, e.g.).  I'm hoping to follow that up in more depth.

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (0) comments


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Introducing 'The New IP'
Stephen Saunders, CEO and founder, Light Reading, 9/11/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
Apple's New iPhones Have 20 LTE Bands, VoLTE
Sarah Reedy, Senior Editor, 9/9/2014
T-Mobile Accuses Huawei of Espionage
Sarah Reedy, Senior Editor, 9/9/2014
Like Us on Facebook
Twitter Feed