Telx Buys Atlanta Exchange, Enters Peering

Telx has acquired the Atlanta Internet Exchange (AIX) and has launched a new peering exchange in Phoenix, the company said today. The expansion marks the company's entry into Internet peering, expanding beyond its traditional business in Layer 1 physical interconnections. By adding Layer 2 peering services - in which providers connect via a switch rather than a patch panel - Telx enters a business dominated by Equinix (EQIX) and Switch and Data (SDXC), with an initial focus on markets that are underserved by those providers.

Peering allows two providers exchanging large volumes of traffic to save money by connecting directly, rather than routing traffic through their paid Internet connections. Peering is often free as long as the amount of traffic exchanged is not out of balance, providing substantial cost savings for bandwidth for high-traffic sites and networks. Public peering exchanges allow participants to peer with other providers connected to the exchange.

The AIX is an established open exchange platform already colocated with Telx at 56 Marietta Street in Atlanta, where Telx owns the building and operates interconnection facilities. The deal provides Telx with an Internet Exchange with more than 60 participants. "This is an exciting opportunity for customers on the AIX," said Michael Lucking, founder of the AIX. "Telx's team has illustrated the dedication and enthusiasm necessary to effectively manage an IP Peering Exchange."

Some of the largest participants in the AIX include Google (GOOG), Akamai (AKAM), Limelight Networks (LLNW), Highwinds, NLayer and WVFiber.

Telx has also launched the Telx Internet Exchange (TIE) in Phoenix at 120 East Van Buren Street, the premier carrier hotel facility in that market. Telx will use Ethernet switches from Force 10 Networks to operate its Phoenix exchange.

"We've been seeing tremendous demand for a neutral peering platform in Phoenix," said Telx spokesperson Ilissa Miller. "There's no other public peering platform in that market." (Atlanta is slightly more competitive, as Switch and Data offerd PAIX peering services at 56 Marietta).

"Every Metro needs at least one strong Internet Exchange," said Paul Vixie, co-founder of the Internet Systems Consortium (ISC). "I am glad to see Telx open one in Phoenix."

"Telx is listening and responding to the market," said Eric Shepcaro, CEO and Chairman of Telx. "The acquisition of the AIX and deployment of the TIE service in Phoenix marks an exciting new direction for the company. Our ability to invest in the AIX and play a significant role in the Phoenix and Southwest market expansion is truly an exciting venture. This allows companies in these respective markets to realize the benefits of a quality network-neutral provider."