23 September 2013

Statement Regarding Proposal US-based Legal Entity

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Earlier this month the Board of the AMS-IX Association has done a proposal to our members to setup a US-based legal entity for possible expansion to the United States. The past few days a discussion has been taking place on an internal AMS-IX mailing list about the possible consequences of having a separate entity there. As the strategy of AMS-IX represents the interests of its members, we are welcoming this discussion and also taking notice of their feedback. Following the concerns of some of our members on the mailing list and in the Dutch press on the proposal we would like to provide more detail.

Earlier this year the opportunity arose by the Open-IX initiative to expand to the US. Representatives from content providers, telecom operators and other Internet industry experts, such as datacenters, founded this initiative. It aims to encourage the development of neutral and distributed Internet exchanges and reduce IP interconnect complexity and cost in the US. In the US this is more complicated and higher priced than in Europe, where the neutral and distributed Internet exchange model is common.

The Open-IX initiative is in line with our Long Term Commercial Strategy (LTCS), which has been approved in previous General Meetings by our members. Our aim is to soundly grow the company's operational base and increase economies of scale in a controlled manner. It is up to the AMS-IX BV to manage the operations and reputation plus making sure that the organization is able to absorb the new activities.

To comply with the Open-IX initiative and minimize risk for our members and customers, the board has proposed to setup a separate legal entity in the US. This risk mitigation is of high importance to us, because we will of course never jeopardize the Dutch Association, the Dutch B.V. and thus the members of AMS-IX.

What the best possible structure should be of this US-based legal entity is still under investigation by our lawyers. To be able to proceed we hope to get approval from our members, for setting up a legal entity that will meet everybody’s concerns, this coming Friday, the 27th of September, in an extraordinary General Meeting.