28 September 2013

Majority of AMS-IX Members Support Set Up of US-based Legal Entity

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As announced earlier, the Board of the AMS-IX Association proposed the set up of a US-based legal entity for possible expansion to the United States. In an extraordinary General Meeting (GM) held on 27 September 2013, AMS-IX members approved the set up of a US-based legal entity by a majority of votes.

Recently, an opportunity arose with the Open-IX initiative for AMS-IX to expand and build exchanges in the US. Representatives from US-based content providers and telecom operators - many of them current AMS-IX members or customers – as well as other Internet industry parties, such as datacenters, founded this initiative. It aims to encourage the development of neutral and distributed Internet exchanges and reduce IP interconnection complexity and cost in the US. In the US this is more complicated and prices are higher than in Europe, where the neutral and distributed Internet exchange model is more common.

Our aim to grow AMS-IX’s operational base abroad is in line with our Long Term Commercial Strategy (LTCS), which was approved in previous General Meetings by our members. However, to minimize the possible risk for our members and customers and to become Open-IX endorsed, the Board proposed the set up of a legal entity in the US. Risk mitigation is extremely important to us and we would never jeopardize the Dutch Association, the Dutch B.V and thus the members of AMS-IX.

With the approval of our members, the Board of the AMS-IX Association will now further investigate the formation of a US-based legal entity. The best possible structures for setting up this legal entity will be reviewed and shared with the members. The chosen structure will need to protect AMS-IX’s current operation and the AMS-IX Association’s customers and members from commercial, legal, financial and technical risks and, more specifically, from interception activities by US government agencies.

Note:
Electronic voting opened on 27 September, 2013 at 12:00AM and closed on 28 September, 2013 at 12:00AM. AMS-IX member representatives were invited to vote individually. The electronic voting was handled by BigPulse, a notary approved environment for e-voting.