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ACE LAUNCHES FIRST BANDWIDTH-ON-DEMAND (BOD) SERVICE WITH LUCENT'S SYSTEMS.

Asia Capacity Exchange (ACE), the Asia Pacific region's first and only online market for buying and selling international communications capacity, have launched the first trans-Pacific Bandwidth-on-Demand (BoD) service. This new BoD service allows carriers, ISPs and corporations to purchase dedicated or IP bandwidth on an as-needed basis or to sell their excess bandwidth through ACE's on-line proprietary software trading engine (ACE Virtual Trading Floor ACE VTF).

Lucent Technologies (NYSE: LU) is supplying its carrier class multiservice core switching and ATM (Asynchronous Transfer Mode) broadband access equipment to support ACE's BoD services. Connections between ACE bandwidth suppliers and consumers will allow the new Telehubs to function at peak efficiency creating the first real-time trading in the "spot" market for bandwidth.

ACE's software development and web design team, led by Renaud Palliere, Co-Founder and Chief Information Officer of ACE, has designed a state-of-the-art trading system that will satisfy strong existing demand for real-time trading of bandwidth as it is needed. "This will complement traditional carrier sales channels," commented Renaud Palliere. "We help suppliers to sell more bandwidth by enabling them to offer their unused bandwidth back into the pool. Sellers can effectively reduce their excess inventory by selling on the spot market on an anonymous basis."

As rates for international bandwidth are in a constant state of flux, cost conscious buyers -- such as ISPs, small carriers, and corporates now have the ability to buy on a spot market without having to enter into long-term contracts with bandwidth suppliers. Bandwidth can be purchased on a fixed rate basis for a fixed term or on a time-of-day usage basis. On the other hand, suppliers with excess bandwidth can profitably off-load surplus capacity that would otherwise have lain dormant. ACE also provides 24x7 monitoring and technical support as well as collocation of equipment for our customers. The company manages billing and settlement functions through a propriety operations support system that customers can access directly.

Lucent has already deployed the network for sites between Hong Kong and Los Angeles. "The Hong Kong-Los Angeles route was the logical choice for our pilot BoD product launch," says Brillson, Chairman and Co-Founder of ACE. "We have been actively trading this route over the past year for international voice traffic, using Hong Kong as a hub for rest of Asia for U.S. and Hong Kong originated traffic. As the growth of data and video traffic and growth in Internet subscribers is forecast to rise to US$160Bn by 2005, representing 70% of total market for telecom services in Asia, our decision to deploy Lucent broadband access equipment along with our existing routers in major telecom hubs represents a major step in our development."

ACE plans to deploy additional Telehub operations in key cities in North America, Asia and Europe within the coming months. ACE's BoD capabilities are well in advance of other systems that have been deployed in the U.S., such as Enron pooling points. "We are the first to market with a BoD product that supports Transpacific routing.

"In the coming days and weeks, we will be sitting down with customers and demonstrating our combined strength in networking -- including a new set of offers based on the combined product portfolio," said Brillson. "We're off to a running start."

"BoD will have a large effect on how companies approach issues of bandwidth, allowing them to hedge against future usage and future payment." said industry expert Matthew McGarvey, Internet Analyst for International Data Corporation (IDC).

Lucent's solution will allow ACE to route and bill its customers' bandwidth-on-demand transactions providing a total bandwidth solution to its clients. ACE will additionally premiere a suite of value-added services to simplify its customers' portfolio management of their own subscribed network bandwidth, such as real time web-based traffic utilization.

ACE will deliver its bandwidth trading/bandwidth-on-demand services through Lucent's CBX 500 Multiservice Wide Area Network (WAN) switches and PacketStar PSAX AC 60 broadband access devices. Lucent will also supply its NavisCore centralized service and network management application under the agreement.

"Our promise is to provide our customers with a stable, economic and high quality infrastructure across which they will be able to seamlessly perform bandwidth trading," said Brillson.
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Title Annotation:Company Business and Marketing
Comment:ACE LAUNCHES FIRST BANDWIDTH-ON-DEMAND (BOD) SERVICE WITH LUCENT'S SYSTEMS.(Company Business and Marketing)
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Sep 25, 2000
Words:694
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