TDM on-demand: WarpSpeed launches dynamic service

Traditional approaches to bandwidth-on-demand typically involve some form of virtual private network, such as ATM. But WarpSpeed, a start-up in which AT&T and 3Com recently invested, is taking an alternative approach.

At the NetWorld+Interop show next week in Atlanta, WarpSpeed plans to launch its Bandwidth-@WarpSpeed service that it says will enable enterprise customers to dynamically set up T-1 connections between any two pre-authorized locations on the WarpSpeed network in less than 30 seconds. Customers will pay $1 per minute for a T-1 connection during peak times.

IT managers "don't believe the statistical multiplexing nature of VPNs gives them the stability of [time division multiplexing]," said Michael Golden, WarpSpeed chairman and chief technology officer.

Key to the Bandwidth@WarpSpeed service is WarpSpeed's Dynamic Private Network technology, which establishes a path between digital cross-connects. WarpSpeed has the right to use AT&T digital cross-connects through a prior agreement with Teleport Communications Group, which AT&T acquired in 1998.

"We make what was a static network into a dynamic private network," Golden said.

WarpSpeed will act as the service provider for Bandwidth@WarpSpeed, but is talking to other carriers about offering the service, WarpSpeed representatives said. The company also plans to add IP to a second phase offering.

"The thing that interests us is the opportunity to provide an offering [that] people want in terms of VPNs, but to do it with a performance, security and reliability advantage," said Mark Perry, general partner for New Enterprise Associates. NEA is a venture capital firm that invested in WarpSpeed when it was formed and increased that investment in the most recent round of financing.