NEW YORK (CNNfn) - Energy concern Enron Corp. Thursday said its communications unit would begin trading bandwidth as a commodity.
Enron Communications' move would allow businesses to preserve communications capacity to provide Internet services to their customers.
"The trading of bandwidth will supercharge the entire Internet industry by dramatically increasing the efficiency of bandwidth provisioning and deployment," said Tom Gros, Enron Communications vice president of global bandwidth trading.
"Bandwidth transactions that used to take months to close will literally take seconds, creating wholesale market efficiencies for the industry."
Enron (ENE), a natural gas and electricity provider, recently entered the telecommunications market through its communications subsidiary, which is building a fiber-optic network across the United States.
Under its new plan, Enron Communications would allow companies to buy and trade bandwidth for such applications as streaming multimedia and Internet video conferencing.
Cisco Systems Inc. (CSCO) and Sun Microsystems Inc. (SUNW) will provide hardware and software for the system.
Enron shares were up 1-1/2 at 74-1/2 in morning trade.