Band-X, the virtual market for international telecom capacity, has moved into the Chinese market and the Asia-Pacific region. The springboard for this expansion is the acquisition of Hong Kong-based International Telecommunications Exchange Centre (ITX), the neutral exchange for wholesale telecoms minutes. Band-X plans an investment program to upgrade services and launch new offerings.
Andrew Pang, chief executive officer of ITX, has been appointed chief executive officer of the newly named Band-X Hong Kong.
“Whenever we move into a new country, we are faced with a ‘buy-or-build?’ decision,” said Marcus de Ferranti, founder and chairman of Band-X. “We decide whether to build a Band-X presence from scratch, or partner with an existing independent exchange. In this case, the choice was clear: Andrew has built a high-caliber team which has established a successful business in the Hong Kong market, and demonstrated both its knowledge of the market and its commitment to the exchange model.
“Pooling our resources to bring the benefits of Band-X’s services to the rapidly deregulating and highly competitive Asia-Pacific market was easily the best solution,” he added.
“This is a tremendously exciting development for ITX’s staff, customers and for me personally,” Pang continued. “With Band-X’s resources behind us we will be able to offer our customers a set of services which have already been proven to be winners.”
Band-X launched the first independent virtual market for international wholesale telecom capacity in 1997, becoming the world’s first telecom-specific B2B exchange. It offers switched, routed, co-location and recruitment services to the telecoms industry.
It has an international membership of over 10,000 and many of the world’s largest telecommunications carriers use its services. Band-X’s IP Routed exchange has also recently been awarded Cisco Powered Network status.
Its web-based exchange provides a secure, anonymous trading floor for:
• Specialist co-location and telehousing
• Switched international voice traffic
• Routed IP capacity
The company is drawing on $40 million of second round funding to finance its ambitious global expansion. Goldman Sachs, Morgan Stanley Dean Witter Private Equity and existing investor Madison Dearborn Partners, have all provided finance for the company, which has opened offices in the US, India, France and Benelux this year.