Ibasis Home Page
About iBasis
Services
Doing Business With Ibasis
News And Events
Investors Relations
Careers
Home Send Us Mail Site Map

 

iBasis Provides International VoIP for Telefónica Deutschland GmbH

DirectVoIP Interconnection Supports Leading German Provider's IP Telephony Services for Business Customers

Burlington — August 22, 2005 — iBasis, Inc., a leader in international long distance, VoIP, and prepaid calling cards, today announced that Telefónica Deutschland GmbH, one of the largest independent IP carrier in Germany, has interconnected with iBasis to deliver comprehensive VoIP services to Internet Service Provider, other carriers and corporate customers. Using iBasis' DirectVoIP™ Broadband service, Telefónica has quickly established a direct IP interconnection with the iBasis global VoIP network in Germany which enables them to add competitive international calling to their IP Telephony offering without the large capital expense associated with fixed TDM circuits, local loops, digital cross-connect switches and gateway ports in global interconnect facilities and data centers.

"We required a highly reliable Voice over Internet Protocol provider to deliver international call termination and expand the global services we provide to Internet Service Providers, other carriers and corporate customers," said Susana Calvo Redondo, Manager Carrier Wholesale of Telefónica in Germany. "We selected iBasis for its proven track of record in providing secure IP interconnections and reliable quality, which are critical to our customer base. As a result, we are able to very quickly expand our international offering with almost no additional capital investment."

"There is growing demand from business customers around the world for converged voice and IP services, and leading innovative carriers like Telefónica are seizing the opportunity to grow their business efficiently by working with proven VoIP providers like iBasis," said Ofer Gneezy, President and CEO of iBasis. "We are very pleased to partner with Telefónica in Germany, as they help to drive mainstream adoption of enterprise IP telephony solutions."

According to Ovum, a leading industry research and analysis firm, the market for enterprise IP telephony solutions such as those provided by Telefonica is moving into a new growth phase. The firm predicts that the market for network-based IP telephony solutions in Europe will be worth $1.4 billion by 2008.

Cost-Effective and Scalable Interconnects with DirectVoIP Broadband

iBasis DirectVoIP Broadband enables service providers to reduce the capital and operating costs required for international voice services. DirectVoIP Broadband interconnections allow cost-effective and scalable VoIP interconnects to carriers and providers, eliminating the need for increased capital expense associated with fixed TDM circuits, local loops, digital cross-connect switches and gateway ports in global interconnect facilities and data centers. DirectVoIP Broadband leverages iBasis' extensive VoIP interoperability capabilities in supporting a broad range of VoIP infrastructure equipment, including multi-vendor gateways, gatekeepers, proxy servers, session border controllers, softswitches, IP phones and PC-Phone applications that have been DirectVoIP Certified. DirectVoIP Broadband also provides enhanced call signaling control and conversion using standards-based protocols such as SIP and H.323 thus allowing a large array of IP phones and PC-Phone applications to operate effectively with the iBasis network.

About Telefónica Deutschland GmbH

Telefónica Deutschland GmbH, a leading IP carrier in Germany, concentrates exclusively on providing comprehensive IP services to business customers. Through its redundant backbone network of more than 440 points of presence in Germany and its connection with the worldwide network of Telefonica, its Spanish parent company, Telefónica Deutschland provides a portfolio of services including Virtual Private Networks (VPNs), integrated voice, video and data solutions, value-added services such as Voice of over IP, and outsourcing services including Hosting and Security solutions. Telefónica Deutschland's customers include more than 40 national carriers and 160 Internet Service Providers (ISPs), including AOL. The company also hosts data centers and corporate networks for major international corporations including Bertelsmann AG, Bank of China, Toyota, Adecco, BMG, Gruner+Jahr, Krombacher, Toto Lotto Lower Saxony, and Xerox.

About iBasis

Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services, including the Pingo™ web-based offering (www.pingo.com) and disposable calling cards, which are sold through major distributors and available at retail stores throughout the U.S. iBasis customers include many of the largest telecommunications carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Skype, and Telefonica. iBasis carried approximately 5 billion minutes of international voice over IP (VoIP) traffic in 2004, and is one of the ten largest carriers of international voice traffic in the world1. For four consecutive years service providers named iBasis the best international wholesale carrier in ATLANTIC-ACM's annual International Wholesale Carrier Report Card2. iBasis was also ranked among the fastest-growing technology companies in New England in the 2002, 2003, and 2004 Technology Fast 50 programs sponsored by Deloitte & Touche. The Company can be reached at its worldwide headquarters in Burlington, Massachusetts, USA at 781-505-7500 or on the Internet at www.ibasis.com.

   
 
 
     

 

 


1 Telegeography 2005 data compared with iBasis 2004 traffic volume.

2 ATLANTIC-ACM International Wholesale Carrier Report Card - 2002, 2003, 2004, & 2005.

Assured Quality Routing and iBasis are registered marks, Pingo, DirectVoIP, and The iBasis Network are trademarks of iBasis, Inc. All other trademarks are the property of their respective owners.

Except for historical information, all of the expectations, projections and assumptions contained in the foregoing press release, including those relating to the company's current expectations regarding revenue growth, sources of revenue, margin improvement, profitability, future capital expenditures, and cash flows constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties. Important factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, (i) the extent of adoption of the company's services and the timing and amount of revenue and margin generated by these services; (ii) fluctuations in the market for and pricing of these services; and (iii) the other considerations described as "Risk Factors" in the Company's most recent Forms 10-K and 10-Q, and the company's other SEC filings. We have no current intention to update any forward-looking statements.

Use of Non-GAAP Financial Data
The Company provides certain financial data in addition to providing financial results in accordance with GAAP. This data is not in accordance with, or an alternative to GAAP, and may be different from Non-GAAP financial data used by other companies. This Non-GAAP financial data includes average revenue per minute, which the Company believes provides useful information, to both its management and investors about the Company's current performance.