VoIP: Strong Potential for Growth

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VoIP Strong Potential for Growth

• Juan Ramos
• Vice President, Latin America

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iBasis Introduction

• One of 10 largest carriers of international
  traffic
• Global Footprint The iBasis Network
• 100 countries
• 280 international carriers
• 2003 Revenue 178 million
• 2004 YTD Revenue 188.4 million
• 2003 Traffic 3.5 billion minutes
• 2004 Q3 Traffic 1.3 billion minutes
• Top-ranked International Wholesale Carrier, 2002,
  2003, 2004

Minutes In Millions
VoIP Revenue In Millions
Atlantic-ACM 2003 Carrier Report Card
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Our Business

• Wholesale International Services
• Call completion to 100 on-net countries
• Retail Services
• Retail calling cards (through distributors)
• Private label calling cards
• eCommerce prepaid offering --

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One of the Top Ten International Carriers
VoIP is Mainstream
Source Telegeography 2004 iBasis 2003 traffic
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The Trends in International Voice Traffic

• International traffic is moving
• from fixed networks to mobile networks
• from TDM to IP
• from PTTs to LECs

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Intl Traffic Shifting From Fixed to Mobile
Worldwide Mobile Subscribers (in billions)
Portio Research Ltd.
Mobile Term.
Mobile Orig.
Telegeography 2004
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Intl Traffic Shifting From TDM to IP
VoBB Subscribers (in millions)

• VoBB Providers
• Skype
• Yahoo BB
• ATT CallVantage
• Vonage
• Net2Phone
• 8x8/Packet 8
• Primus/Lingo
• Broadvox
• BroadVoice
• Time Warner
• Charter
• Cox
• Cablevision
• Verizon

BB Subscribers (in millions)
ITU World Telecommunication Indicators Database
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Intl Traffic Shifting From PTTs to LECs
Source Telegeography 2004
9
Prepaid Services Taking Share of International
Traffic
U.S. Outbound International Traffic
Revenue
Minutes
Prepaid Cards All Other
Sources FCC 2004 Trends in Telephone Service
Atlantic-ACM 2002 Prepaid History and Industry
Overview
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The Trends Favor Wholesale VoIP

• International Wholesale market Will Double in 3
  to 5 Years
• MNOs, VoBB Providers LECs Dont Have
  International Networks
• And
• Competitors Are Exiting
• International Wholesale is a LOGISTICS business
• PTTs are not achieving required scale and
  efficiency

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1/3rd of Intl Traffic is Already Wholesale
Telegeography 2004
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Latin America and VoIP Market Dynamics

• Latin America represents 35 of global VoIP
  traffic while accounting for about 9 of
  worldwide PSTN traffic
• VoIP accounts for at least 20 of all incoming
  long-distance traffic in Argentina
• According to Telegeography, US-originated VoIP
  routes to Brazil increased 80 between 2001 and
  2002
• Central America Emerging VoIP market

Source Telegeography 2004
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Latin America a Primary VoIP Destination

• 1/3 of all international VoIP traffic
• gt5 billion minutes
• Peru Venezuela the highest destination
  growth
• Mexico gt50 of all incoming voice traffic

Source Telegeography 2004
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iBasis Systems Key to Our Success
Origination
Termination
Carriers PTTs/IXCs LECs/Mobile Emerging
PoPs

• Core Systems
• Routing Rating
• Pricing/Quoting/Buying
• Automated Billing/Margin/Revenue Analysis
• Prepaid/Postpaid CDR Processing
• Real-time Network Performance Monitoring
• Configuration/Provisioning

iPoPs
Prepaid Disposable POSA
Mobile
eCommerce Web Portal
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Quality of Service

• Taming the Internet
• Providing Redundancy
• Virtual Backbone Eliminates Peering Points
• Performance Monitoring and Dynamic Selection
• Strong ISP Agreements
• Diversity in Termination Options
• Extensive Partner Interconnects
• Overflow to TDM Carriers
• Routing Efficiency
• Global Routing
• Rapidly Dealing with Constant Complex Code
  Changes

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Wholesale VoIP The Key to International
Telecommunications

• Lower cost
• VoIP margin 15
• TDM margin 10
• Simplicity of Network Deployment Management
• Lower Capital Expense

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Thank you.

• Jramos_at_ibasis.net