Telx to Open Ethernet Exchange

Adding to the growing number of Ethernet-based carrier interconnection facilities, colocation provider Telx said it will establish an Ethernet Exchange that will allow operators and enterprises to seamlessly interconnect their Ethernet networks.

Based on Cisco gear, the new exchange will debut later this year in seven data centers, including Telxs New York City facilities and its centers in Atlanta and San Francisco. The company plans to roll out the exchange to its remaining locations over the next year or so.

Based in New York, Telx operates 15 data centers in large markets across the country, providing connections with 750 carriers, ISPs, content providers and enterprises. The company also said it will partner with interconnection provider Neutral Tandem to connect the companies Ethernet exchange systems. Neutral Tandem earlier this year said it will launch its Ethernet eXchange in 14 markets by the end of 2010.

The relationship with Telx will enable us to create the largest Ethernet Exchange platform in the nation, said Neutral Tandem CEO Rian Wren, in a statement.

The companies join a swelling march toward interconnected Ethernet systems for long-haul transport and wireless backhaul systems. In late 2009 CENX opened three carrier Ethernet exchanges, in Los Angeles, New York City and Chicago. CENX called its facilities the first fully neutral carrier Ethernet voice exchange service. Previously, carriers have had to exchange Ethernet traffic either in one-off bilateral exchanges, which are cumbersome and difficult to scale, or in multi-operator voice tandems, which typically charge on a per-minute basis.

Driven by rapid growth in demand for mobile backhaul, video, virtualization and other high-bandwidth applications, carrier Ethernet will grow at a rate of 24 percent per year through 2015, according to analyst Rosemary Cochran, a principal with Vertical Systems Group.

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