Light Reading

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        ADD A COMMENT
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.

Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (8) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (2) comments


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Hot Topics
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones