ACE Launches First Bandwidth-on-Demand (BoD) Service with Lucent's Systems; First Trans-Pacific Trading "Spot" Market for Bandwidth via Implementation of Lucent Technologies ATM Network.

High-Tech Editors

HONG KONG--(BUSINESS WIRE)--Sept. 18, 2000

Asia Capacity Exchange (ACE), the Asia Pacific region's first and only online market for buying and selling international communications capacity, today 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(TM).

Lucent Technologies is supplying its industry-leading 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(TM) to function at peak efficiency creating the first real-time trading in the "spot" (a) 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 laid 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 Paula 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 trans-Pacific 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 utilisation.

ACE will deliver its bandwidth trading/bandwidth-on-demand services through Lucent's CBX 500(TM) Multiservice Wide Area Network (WAN) switches and PacketStar(TM) PSAX AC 60 broadband access devices. Lucent will also supply its NavisCore(TM) centralised 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. "Lucent's industry-leading multiservice solutions support ATM, frame relay and IP services as well as carrier-class reliability allowing us to deliver our promise."

"The ACE initiative to provide the BoD exchange is an exciting move. We are proud that Lucent has been selected to support its on-line capacity trading services," said Kevin Poon, managing director, InterNetworking Systems, Lucent Technologies - Greater China. "Deploying our technology allows ACE to deliver a sophisticated and cost-effective next-generation network and gives ACE customers a means to optimise new revenue sources".

"Today's announcement has further strengthen our position as the world-wide market leader in multiservice WAN switching", Poon added.

Lucent Technologies continues to be recognized as the leading vendor for multiservice WAN switching, most recently in reports by Cahners In-Stat Group, Dell'Oro Group and Synergy Research Group covering the first half of 2000. The company also dominates the worldwide ATM access market, owning as much as 80 percent of the revenue market according to the latest report from Synergy.

(a) spot market = a market for buying or selling commodities for immediate delivery and for cash payment.

About ACE

ACE is the leading exchange through which telecom companies, ISPs and enterprise customers can buy, sell and physically deliver network capacity on demand. ACE's web-based virtual trading floor (ACE VTF(TM) enables its traders to enter bids and offers for capacity - ranging from clear channel, frame relay and IP bandwidth to international circuit-switched voice minutes and voice-over-IP. Operating as a neutral third party, ACE aggregates buyers and sellers to deliver cost savings and efficiencies in transacting capacity trades. Automated delivery is accomplished through ACE's Telehub(TM) using the company's proprietary trading software that directs the flow of bandwidth and minutes between buyers and sellers. ACE provides a turnkey solution to its customers including provisioning, network monitoring, service level agreements, clearing and settlement. In addition to its trading operations, the ACE website has emerged as the industry's leading telecommunications communication spot - offering news and regulatory information to thousands of industry participants and analysts. More information about ACE can be found at http://www.ace-asia.com.

About Lucent Technologies

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.