TOKYO -- BBIX will start offering Internet exchange services in Hong Kong and Singapore next month, aiming to reduce costs and lag time as the advent of smartphones causes network traffic to swell.
Internet exchanges allow different Internet service providers and telecommunications companies to connect to each other's networks. Using an exchange can cut connection costs for telecom companies by 40-60%.
This will mark the first time that BBIX, a subsidiary of Japanese mobile provider SoftBank, will offer this service outside Japan. The company will set up local units in Hong Kong and Singapore and spend a total of roughly 1 billion yen ($9.74 million) to build new exchange points. They will begin operating on a trial basis next month, with service to start fully in October.
BBIX will also set up an organization Friday to create an environment to support low-cost, high-quality service, with 25 Asian telecom companies participating. It will offer technical research and advice for maintaining fast, stable connections even as data use balloons.