Ethernet services

DE-CIX Eyes Tepid US Exchange Market

DE-CIX, the Internet peering exchange giant based in Frankfurt, Germany, appears to have ambitious plans in the US for an interconnection business model that has thus far failed to fully take root with US carriers.

The company today announced the launch of its US operation, DE-CIX North America, which plans to roll out distributed carrier-neutral and datacenter-neutral Internet peering exchanges in major US metro regions, starting with New York City. (See DE-CIX Enters US Exchange Market.)

The exchanges will use Ethernet switching fabrics connected to all-fiber metro backbones, and will aim to win over carriers looking for an easier way of cultivating interconnections than the tedious and complex business of private interconnection agreements.

DE-CIX has had success with the open model for interconnections in places like Frankfurt and Dubai in the United Arab Emirates.

Why this matters:

  • An ambitious, well-heeled company from outside the US certainly could be a positive factor for helping both foreign and small domestic carriers expand their Ethernet footprints in more US markets.

  • The business model for so-called interconnection exchanges seemed very appealing a few years ago when the Metro Ethernet Forum boosted its prospects via its Network-to-Network Interface specification. Companies like CENX, Inteliquent, and Equinix positioned themselves at the center of what looked to be a hot trend.

However, the concept has fizzled to some degree because carriers have shown a preference for working closely with a select group of partners to establish interconnections, rather than going shopping for them in an open marketplace. Still, many folks in the interconnection realm feel the exchange model still has a bright future, particularly for helping new market underdogs expand their reach. A global player like DE-CIX could help revive its appeal.

Related posts:

— Dan O'Shea, Managing Editor, Light Reading

Interested in learning more on this topic? Then come to Ethernet & SDN Expo, a Light Reading Live event that takes place Oct. 2-3, 2013 at the Javits Center in New York City. Co-located with Interop, Light Reading's Ethernet & SDN Expo will focus on how the convergence of Carrier Ethernet 2.0 with emerging carrier software-defined networking (SDN) and network functions virtualization technologies could change the whole telecom landscape for service providers. For more information, or to register, click here.

DOShea 9/19/2013 | 10:16:34 AM
Business models Should be noted that carrier-to-carrier Ethernet exchange is just one part of the business model for all the companies mentioned. CENX was arguably the company here most designed round that concept, and has modified its busisness model somewhat to support carrier's private interconnection deals.
Sign In