IP interconnect provider XConnect and Malaysian and Indonesian ICT specialist Extol this week launched the Asian Interconnect Exchange (AIX), giving local service providers access to an IP hub where they can exchange IP traffic and services.

The combined population of Malaysia and Indonesia is nearly 300 million, according to the CIA Fact Book, and the aim of the AIX is to make adopting IP services like VoIP easy for local and regional operators in order to drive growth in IP services in Southeast Asia.

AIX allows service providers to interconnect to multiple networks via a single IP connection to the hub, supporting the interworking of voice and advanced IP services, such as HD voice, video and Unified Communications (UC) between fixed, mobile and OTT service providers.

“The transition from legacy TDM networks to IP interconnection is crucial for the development of new IP services and we believe that with a partner like XConnect we can make a lasting impact on ICT in the region. Our collaborative efforts will result in advanced and efficient VoIP interconnect solutions for our customers and new opportunities in IP in the future,” said Mr. Mohd Badaruddin Bin Masodi, president of Extol Malaysia.

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Malaysia is one of the fastest growing communications markets in Asia with VoIP traffic alone set to grow at CAGR of 18 per cent to 2018, according to Ovum. In addition, mobile broadband connections are due to increase at a CAGR of 11 per cent over the next five years as LTE rolls out. This will take the total number close to 44 million by 2018 or 165 per cent population penetration.

Catherine Haslam, senior analyst at Ovum, said “With such high growth from IP-based communications there will be an increasing demand for interconnection from both legacy and IP networks and at a cost base that supports new business models. Federated or hub solutions represent an effective way of meeting both the technical and business requirements for the future of interconnection.”

XConnect already enables similar IP hubs in Germany, the US and Hong Kong.