Arbinet
Arbinet Corporation operated thexchange, an electronic marketplace connecting over 1,100 carriers across 1,400+ destinations for trading international voice and IP telecommunications capacity. Acquired by Primus Telecommunications Group in March 2011.
- Company typePublic
- Founded1996
- HeadquartersHerndon, United States
- Headcount51–100
- GTM typeB2B
- OfferingServices
What Arbinet does
Arbinet Corporation, founded in 1996 and headquartered in Herndon, Virginia, operated thexchange, an electronic marketplace for trading, routing, and settling international voice and IP telecommunications capacity. Through a single interconnect, the platform connected more than 1,100 carriers across 1,400+ destinations and handled approximately 2% of the world's international voice traffic, with members including roughly 75% of the world's 40 largest communication service providers. Core platform components included intelligent TDM/VoIP conversion, the patented OptimizedIP Layer 2 route optimization service, the Global Number Portability Database (handling 100M+ queries monthly), the AxcessCode calling-code repository, and the thexchange Quality Index (TQI) for route quality scoring. The company was publicly listed on NASDAQ under ARBX and was acquired by Primus Telecommunications Group in a stock-for-stock transaction completed in March 2011, at which point Arbinet ceased independent operations.
The business model was transaction-fee based, generating revenue through marketplace trading fees, accelerated settlement services (RapidClear at 1.5%-3.0% of minute sales), PrivateExchange virtual-direct interconnection fees, and IP transit subscriptions. Around the core thexchange, Arbinet layered multiple service modules: MarketAxcess (exchange-based trading), Carrier Services (fee-free traditional wholesale), PrivateExchange (privately negotiated bilateral routing with conversion), DirectAxcess and AssuredAxcess (managed termination), and OptimizedIP/PrimeIP/SelectIP (IP services). Go-to-market was enterprise field sales with dedicated account teams and regional sales offices in New York, London (EMEA HQ), Singapore, Guatemala City, and Beirut, supported by data-center PoPs in Miami, Los Angeles, Frankfurt, and Hong Kong.
Arbinet raised approximately $76M across funding rounds in 1997, 2000, and 2001 from investors including EnerTech Capital, BancBoston Ventures, ComVentures, JPMorgan Partners, Van Wagoner Ventures, Amerindo, and Breakaway Capital Partners. By 2008, leadership transitioned with Shawn F. O'Donnell appointed CEO; the company refocused on core voice and data, expanded into IP services and emerging markets (Middle East, Central America), launched MarketView 2.0 and Customer-Based Routing, and divested non-core Broad Street Digital. The 2011 Primus acquisition ended Arbinet's standalone trajectory.
Arbinet firmographics
Firmographics- Name
- Arbinet
- Legal name
- Arbinet Corporation
- Website
- https://arbinet.com
- Company type
- Public
- Founded year
- 1996
- Operating status
- Acquired
- Headcount range
- 51–100 employees
- Short description
- Arbinet Corporation operated thexchange, an electronic marketplace connecting over 1,100 carriers across 1,400+ destinations for trading international voice and IP telecommunications capacity. Acquired by Primus Telecommunications Group in March 2011.
- Ownership category
- akta.pro rank
Arbinet industry classification
Industry- Product category
- Wholesale Telecommunications Exchange / Voice and IP Trading Platform
- NAICS
- Securities and Commodity Contracts Intermediation and Brokerage (5231), All Other Telecommunications (5178)
- SIC
- Services-Telephone Interconnect Systems (7385)
- akta.pro primary industry
- Multi-Asset Trading Networks / Interdealer Broker Platforms (FSAFAEAJ)
Keywords
Where Arbinet is headquartered
LocationHeadquarters
- HQ city
- Herndon
- HQ country
- United States
- HQ region
- North America
Offices10 records
Markets served
Arbinet business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Technology or R&D, Infrastructure, Personnel, Operations, Marketing or Sales
Revenue model
- Marketplace Trading Fees: Arbinet generates revenue through transaction fees on thexchange marketplace where carriers buy and sell voice and IP capacity. Transactions valued at approximately $500 million in 2007 through the platform.
- RapidClear Settlement Service: Accelerated settlement service with fees ranging from 1.5% to 3.0% based on settlement option selected (15 Net 2, 7 Net 2 Standard, Same-Day Each Week, or 3 Net 1).
- PrivateExchange Services: Fees charged for transport traffic on PrivateExchange service, enabling virtual direct routes between carriers under privately negotiated commercial terms.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | RapidClear 15 Net 2 - 15 day trading period with 2 business day settlement |
| Transaction based/ take rate | Pay-as-you-go | RapidClear 7 Net 2 Standard - 7 day trading period with 2 business day settlement |
| Transaction based/ take rate | Weekly | RapidClear Same-Day Each Week - Weekly settlement option |
| Transaction based/ take rate | Pay-as-you-go | RapidClear 3 Net 1 - 3 day trading period with 1 business day settlement |
| Transaction based/ take rate | Monthly | Carrier Services - Traditional wholesale model |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels4 records
Arbinet product offering
Product offeringCore offering
Arbinet operates thexchange, an anonymous electronic marketplace where telecommunications carriers buy, sell, route and settle international voice and IP capacity through a single interconnect. The platform connects more than 1,100 carriers globally, reaches over 1,400 destinations, and provides supporting services including automated TDM/VoIP conversion, credit risk management through CreditWatch, accelerated settlement via RapidClear, IP route optimization through the patented OptimizedIP service, and database services for number portability and calling codes.
Product overview
Arbinet was a B2B telecommunications marketplace platform providing voice and IP solutions to carriers and service providers globally. The core offering was thexchange, an anonymous electronic marketplace for trading, routing and settling voice traffic. Around this core, Arbinet offered multiple service delivery modes: MarketAxcess for exchange-based trading, Carrier Services for traditional wholesale, and PrivateExchange for direct bilateral connections. IP services included OptimizedIP, PrimeIP, and SelectIP. Supporting services included RapidClear for accelerated settlement, Global Number Portability Service for routing accuracy, AxcessCode for calling code databases, and CreditWatch for credit management. The company operated points of presence in Hong Kong, Los Angeles, London, New York, Miami, and Frankfurt.
Differentiator
Problem solved
Functional benefit
Brands
- thexchange: Arbinet's electronic marketplace for trading, routing and settling voice communications capacity
- RapidClear
- SelectVoice
- DirectAxcess
- CreditWatch
- AxcessCode
- PrivateExchange
- OptimizedIP
- PrimeIP
- SelectIP
- MarketView
- MarketAxcess
- AssuredAxcess
- ManagedAxcess
- Global Number Portability Service
Products and services
- thexchange
- MarketAxcess on thexchange
- DirectAxcess
- PrivateExchange
- Carrier Services
- RapidClear
- OptimizedIP
- PrimeIP
- SelectIP
- AssuredAxcess
- Global Number Portability Service
- AxcessCode
- MarketView
- CreditWatch
Quantifiable outcome
- Members route approximately 2% of world's international voice traffic to over 1,300 destinations
- +2 more outcomes
Companies that use Arbinet
Customer profileNamed customers11 records
Segments4 records
Ideal customer profiles3 records
Arbinet technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
AI capability3 records
Feature6 records
Arbinet partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core.
- Pangaea NetworkscorePangaea Networks extended its Metro Ethernet service to Arbinet's IP Exchange PoP at 75 Broad Street in New York. The partnership enables Pangaea's Metro Ethernet customers to access Arbinet's carrier neutral IP network solutions including layer 2 access to major Internet backbones and OptimizedIP service.
- NetNumbercorePartnership to extend Arbinet's Global Number Portability Service to NetNumber's TITAN routing database platform customers. NetNumber provides access to Arbinet's Global Number Portability Databases, enabling full portability correction services in USA, Netherlands, Belgium, Switzerland, Sweden, Italy, Germany and Brazil. Arbinet manages 100M queries monthly against its platform.
Scale indicators8 records
Recent moves12 records
Expansion highlights6 records
Arbinet competitors and assessment
Company assessmentDirect peers
- IDT Corporation: IDT operates wholesale international voice termination services and carrier-to-carrier trading through its IDT Telecom division. It targets the same wholesale carrier customer base with similar arbitrage-driven voice termination economics.
- iBasis: iBasis operated one of the largest international voice-over-IP trading exchanges with a similar carrier-to-carrier marketplace model. It was Arbinet's most direct head-to-head competitor and eventually became a KPN subsidiary, offering comparable VoIP exchange services to global carriers.
- Bandwidth Inc: Bandwidth (which absorbed Voxbone) is a communications platform-as-a-service provider serving enterprise and carrier customers with voice, messaging, and IP services. It targets a similar communications buyer with API-first wholesale and carrier-grade termination capabilities.
Broad incumbents
- Verizon Communications: Verizon operates one of the largest wholesale voice and IP service portfolios globally and is a major counterparty in international carrier termination markets. Its international voice services compete with Arbinet's wholesale carrier offerings at the Tier-1 level.
- Primus Telecommunications Group (PTGi): PTGi acquired Arbinet in 2011 and was historically a retail/wholesale international voice carrier. The integration consolidated Arbinet's marketplace into a vertically combined voice operator with overlapping service lines including wholesale termination and IP-based services.
- Tata Communications: Tata Communications operates one of the world's largest wholesale voice and undersea cable networks, serving as both a competitor and significant member of carrier marketplaces. It offers global voice termination, IP transit, and wholesale services across the same international carrier customer base.
- Telia Carrier: Telia Carrier (now Arelion) is a global wholesale IP backbone and voice services provider serving Tier-1 carriers and content providers. It was both an Arbinet member and a competitor in adjacent IP transit and wholesale voice markets.
- BT Global Services: BT operates a major global wholesale carrier voice and IP service portfolio including international voice termination, IP exchange services, and managed network connectivity for carriers and service providers across the same footprint.
Emerging players
- Sinch: Sinch is a cloud communications platform serving enterprise and carrier customers with voice, messaging, and verification APIs. It represents the modern CPaaS alternative to traditional wholesale voice carrier exchanges.
- Voxbone (now part of Bandwidth): Voxbone built a virtual international voice network offering DIDs and global voice termination to enterprise and CPaaS customers. It offered a more programmable, cloud-native alternative to traditional bilateral carrier trading.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights7 records
Customer concentration
Arbinet social profiles
Digital presenceArbinet financial estimates
Financial estimateRevenue estimate
Valuation estimate
Arbinet leadership team
Management profileNumber of profiles
Profiles15 records
Arbinet funding detail
Funding detailFunding overview
Funding rounds3 records
Investors11 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Arbinet M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Arbinet
What does Arbinet do?
Arbinet operates thexchange, an anonymous electronic marketplace where telecommunications carriers buy, sell, route and settle international voice and IP capacity through a single interconnect. The platform connects more than 1,100 carriers globally, reaches over 1,400 destinations, and provides supporting services including automated TDM/VoIP conversion, credit risk management through CreditWatch, accelerated settlement via RapidClear, IP route optimization through the patented OptimizedIP service, and database services for number portability and calling codes.
Is Arbinet a public or private company?
Arbinet is a public company. It is classified as corporate owned and is currently acquired.
When was Arbinet founded?
Arbinet was founded in 1996. It employs 51 to 100 people.
Where is Arbinet based?
Arbinet is headquartered in Herndon, United States, in the North America region.
How does Arbinet make money?
Three revenue lines are on record. Marketplace Trading Fees are the primary driver. The others are rapidClear Settlement Service and privateExchange Services.
Who are Arbinet's main competitors?
Direct peers on record are IDT Corporation, iBasis and Bandwidth Inc. Broad incumbents are Verizon Communications, Primus Telecommunications Group (PTGi), Tata Communications, Telia Carrier and BT Global Services. Emerging players are Sinch and Voxbone (now part of Bandwidth).
Does Arbinet have an API?
No public API is recorded for Arbinet.
What industry is Arbinet in?
Arbinet's product category is Wholesale Telecommunications Exchange / Voice and IP Trading Platform. Its primary akta.pro industry code is FSAFAEAJ, Multi-Asset Trading Networks / Interdealer Broker Platforms. Its NAICS code is 5231 and its SIC code is 7385.