Neutral Tandem (Nasdaq: TNDM) has wrapped up the integration process of its IP/MPLS network with Tinet's global Ethernet network to create what it claims will be one of the largest Ethernet exchanges.
According to Neutral Tandem, a service provider that accesses its Ethernet exchange will be able to either purchase or sell their services to every member that's connected any of its exchange Points of Presence (PoPs) or 100 locations outside their network boundaries. In turn, access providers put their available building lists on display for all members of Neutral Tandem's network.
While Neutral Tandem was initially a U.S.-centric provider of voice tandem services, its acquisition of Tinet immediately gave it an international footprint it used to deliver global wholesale Ethernet and VPLS connectivity. Perhaps the more compelling asset of the Tinet acquisition was its established External-Network to Network Interconnection (E-NNI) agreements with various international service providers.
And even though the Ethernet exchange market is still arguably nascent, with the initial players--CENX, Equinix, Neutral Tandem, and TELX ramping up their offerings-the value for service providers will be in their ability to augment their established interconnection arrangements with another tool in the toolbox to provide connectivity for their demanding multinational corporation (MNC) clients.
- see the release
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