Monday December 6, 8:13 am Eastern Time
Company Press Release
iBasis Launches Internet Telephony Hosting
New Services Complement the Company's Wholesale VoIP Business,
Enable New Market Entrants, Accelerate Growth of Internet Telephony
BURLINGTON, Mass.--(BUSINESS WIRE)--Dec. 6, 1999--iBasis, Inc., (NASDAQ:IBAS - news) the leader in
international Internet telephony, today announced the industry's first Internet telephony hosting services. With iBasis Internet
Telephony HostingTM, telephony service providers and international ISPs have access to a turnkey solution that enables them
to quickly begin offering voice, fax, pre-paid calling and other value-added VoIP services, with minimal capital investment.
These new services include hosting of voice-over-Internet protocol (VoIP) equipment in iBasis Internet Central Offices, access
to high quality Internet backbone and Public Switched Telephone Network (PSTN) termination and the Operational Support
Systems (OSS) necessary for traffic management, reporting and customer billing.
''There is a huge wave of traffic moving to the Internet, and iBasis, with these new Internet telephony hosting services and its
proven global network, is well positioned to do for international telecommunications providers what UUNET has done for
ISPs,'' said Mark Winther, group vice president, Worldwide Telecommunications, IDC. ''iBasis is offering service providers a
new model for obtaining the critical infrastructure and management resources they need to be successful in international Internet
telephony.''
''Sharing Cisco's vision of packet-based communications, iBasis established itself early as a leading provider of VoIP,'' said
Kevin Kennedy, sr. vice president and general manager, Service Provider Line of Business, Cisco Systems. ''Now it is
becoming a catalyst, helping other service providers make a swift transition to the New World of IP telephony.''
''We have built the world's largest international Cisco Powered Network for Internet telephony and are delivering toll quality
service to tier one carriers over that infrastructure using our proprietary Assured Quality Routing technology,'' said Ofer
Gneezy, president and CEO of iBasis. ''Now, with iBasis Internet Telephony Hosting, we are combining that Internet
telephony expertise, global footprint and our operational support services to deliver a modular, turnkey solution that enables
service providers around the world to quickly enter the rapidly growing market for international voice and fax services over the
Internet.''
iBasis Internet Telephony Hosting: A World of Opportunity for Service Providers
iBasis is the proven leader in Internet telephony, employing unparalleled technological expertise to develop and deploy the
world's first global VoIP network that provides toll quality service to tier one carriers. Now, with the addition of Internet
telephony hosting, the company is broadening its offerings to deliver services that appeal not only to large international carriers,
but also to new types of customers, such as emerging service providers and international ISPs that want to leverage the
company's world-class platform to rapidly establish a global footprint.
Telecommunications carriers, both wireline and wireless, whose existing network footprint is local, regional or national in scope,
can use iBasis Internet Telephony Hosting to extend both their services and their brand to the international marketplace with
overseas call origination and termination.
For emerging carriers, iBasis Internet Telephony Hosting offers an ''instant global network,'' without the significant investments
in equipment, time and operational and regulatory groundwork required to build a global telephony network. In the same way
that outsourcing dial up access enables ISPs to focus on recruiting and retaining customers, iBasis Internet Telephony Hosting
lets new service providers leverage their brand and focus their resources on sales, marketing, and customer service rather than
on establishing and maintaining a telephony infrastructure.
For network service providers and systems integrators that build enterprise-wide networks, iBasis Internet Telephony Hosting
provides the additional elements required to voice-enable their solutions. An integrated voice and data solution reduces their
customers' telephony costs, with no reduction in call quality or need for end user training. In addition, iBasis Internet Telephony
Hosting can provide IP call-routing and billing management services, access to iBasis' proprietary Assured Quality Routing
technology, as well as low cost, off-net termination for calls to points beyond a customer's network.
With a proven global network and automated billing services, iBasis Internet Telephony Hosting enables e-businesses to
quickly and economically add the power of voice and real-time fax to their solutions.
Global Network Expansion to Create Platform For Value-added Services
In order to meet the rapidly growing demand for its core voice and fax services as well as to deliver new hosting solutions,
iBasis is significantly expanding its global infrastructure. As of December 1999, the company has Internet Central Offices in
Frankfurt, Hong Kong, London, Los Angeles and New York and can terminate voice and fax traffic in virtually every country
in the world. The company plans to quadruple the number of Internet Central Offices (ICOs) in its network from five to 20 by
the end of 2000, substantially increasing infrastructure capacity. As the market for advanced, IP-based communications
expands, this large-scale, network expansion will ensure that iBasis has the global platform necessary to deliver the
value-added services that will drive the next wave of growth in Internet telephony.
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