Select your localized edition:

Close ×

More Ways to Connect

Discover one of our 28 local entrepreneurial communities »

Be the first to know as we launch in new countries and markets around the globe.

Interested in bringing MIT Technology Review to your local market?

MIT Technology ReviewMIT Technology Review - logo

 

Unsupported browser: Your browser does not meet modern web standards. See how it scores »

{ action.text }

Indeed, he and Elliott still have a ways to go to create a true commodities “spot market” where traders can agree on amounts, quality and price at the same time for prompt exchange. A bona fide commodity exchange, where traders lay bets on future bandwidth prices, is still further off.

But these are the goals the new online exchanges are working toward. At RateXchange, former Sprint executive and company founder Sean Whelan has brought in an expert from the Kansas wheat exchange to help create something akin to a true commodities market for bandwidth. Whelan says RateXchange already offers standardized contracts, and that circuit tests for determining the quality of sellers’ connections is next.

Still, the key to an efficient exchange-whether for stocks, wheat or bandwidth-is the ability to deliver the goods. To that end, Band-X recently installed its own switch at Telehouse, a major telecom hub in London where many carriers’ lines converge. The switch, network hardware for selecting the path along which data or phone calls will travel, should allow Band-X to actually juggle traffic between clients once they complete a deal.

0 comments about this story. Start the discussion »

Tagged: Business, Communications

Reprints and Permissions | Send feedback to the editor

From the Archives

Close

Introducing MIT Technology Review Insider.

Already a Magazine subscriber?

You're automatically an Insider. It's easy to activate or upgrade your account.

Activate Your Account

Become an Insider

It's the new way to subscribe. Get even more of the tech news, research, and discoveries you crave.

Sign Up

Learn More

Find out why MIT Technology Review Insider is for you and explore your options.

Show Me