1. VoIP: From Disruptive Innovation to Mainstream Opportunity
Gordon VanderBrug Executive VP & Co-founder

2. The Trends in International Voice Traffic
Retail traffic is moving:
From Fixed to Mobile
From TDM to VoIP
From PTTs to New Carriers

3. Mobile Growth Mobile Subscribers Worldwide % Mobile Orig.
% Mobile Term.
Mobile Subscribers Worldwide
(in millions)
Mobile traffic
DR: mobile lines 3x fixed lines
Jamaica: Mobile penetration is 59%, 2nd highest in LatAm (Chile #1)
Portio Research Ltd

4. Consumer Voice over IP Revenues Users Providers Skype Vonage
(in millions)
Revenues
(in billions)
Providers
Skype
Yahoo BB
AT&T- CallVantage
Verizon-Voice Wing
Time Warner BT
Vonage
8x8-Packet 8
Primus-Lingo
Broadvox
BroadVoice
Iliad-Free
Cablevision
FastWeb
Charter
Cox
Comcast
AOL
Ovum, August 2004

5. New Carrier Share of Intl. Traffic
New carrier figure includes only carriers that began operations after 1989
Telegeography 2005

6. Trends Drive International Traffic to VoIP Carriers
International Wholesale Market Growing Fast
MNOs, Consumer VoIP providers & LECs don’t have international networks – dependent on wholesalers
Inefficient Carriers Are Exiting or Scaling Down Wholesale
International wholesale has become a TRADING business
Many PTTs are not achieving required scale and efficiency
Recent exits, scale downs:
France Telecom, Global Crossing, Cable & Wireless, TeliaSonera…

7. VoIP - 13% of Intl. Traffic, & Growing
International VoIP and PSTN Traffic, 1998 – 2004
(Minutes in Billions)
Source: TeleGeography 2005

8. Significant Market Share
iBasis Carries 10 – 30% of International Traffic to:
Brazil
Jamaica
Argentina
Thailand
Mexico
Indonesia
Colombia
Russia
Peru
Nigeria
Based on iBasis annualized 2005 traffic and Telegeography 2005

9. Rapid Adoption of VoIP in the Caribbean
Jamaica and Dominican Republic: top 10 destinations of international VoIP in Latin America*
St Maarten: VoIP roll out in 2004 from International long distance provider
Barbados: international long distance licenses awarded at the end of February 2005
SmitCom in St. Maarten (bought by Telem, the PTT of St. Maarten)
Barbados licenses granted to?
* Telegeography 2005

10. Changes to the VoIP Landscape
Deregulation continues to spread across the region
IP Interconnects with Major PTTs
Reduction of costs from TDM interconnects
VoIP solutions with SS7/C7 capabilities
Carrier Class Gateways and Softswitches
Interoperability is easier – Session Border Controllers

11. PTTs & Local Exchange Carriers
Get Your Share of the Minutes!
iBasis sends more than 10 million minutes per day of VoIP traffic to PTTs in Latin America
Our fastest growing region
Leverage the Efficiency
TDM and IP Interconnects
High quality international service for retail voice

12. iBasis Customers in Latin America

13. iBasis Overview Minutes In Millions VoIP Revenue In Millions
One of 10 largest carriers of international traffic
Two growing businesses – wholesale & retail
Global Footprint – The iBasis Network
100+ countries
300+ international carriers
Achieving Steady Growth in Minutes and Revenues
2004 Revenue: $264 m
2005 Q1 Revenue: $89 m
Projecting 40 – 50% growth
Top-ranked International Wholesale Carrier, 2002, 2003, 2004, 2005**
Minutes
In Millions
VoIP Revenue
In Millions
iBasis is a leading global provider of voice on the net services.
We are focused on three complementary areas:
Internet telephony – the worldwide transport of voice and fax over the Internet,
Messaging – hosted unified messaging services, and
Speech solutions – developing and hosting speech enabled applications, as well as the infrastructure providing global access to speech applications and voice-enabled web sites for customer relationship management, eBusiness, content delivery and transactions
All of these business areas leverage the iBasis Network and our proven ability to provide high quality voice communications over the Internet.
iBasis was founded in 1996 and has grown rapidly into a global leader in Internet-based communications. During 1999 and 2000 we completed very successful public offerings of stock and bonds that have provided iBasis with sufficient cash reserves to achieve profitability and to continue to invest in the new technologies and capabilities that will help our customers grow and prosper.
. Given the conditions in the capital markets today, this is a tremendous strategic advantage for iBasis.
* Assuming stable ARPM
** Atlantic-ACM Int’l Wholesale Carrier Report Card

14. Global Reach Points of Presence in >100 Countries
Network Operations Center
(Burlington)
Network Operations Center
(Hong Kong)
Points of Presence in >100 Countries
>1,000 Direct Routes
Internet Central Offices
iBasis Offices

15. iBasis Customers – Rest of World

16. Retail: 20% of Our Business and Growing
Retail Revenue in Millions
All Major Metro Markets
eCommerce Channel

17. Sophisticated Quality & Management Systems
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
In addition to our network, iBasis has developed core operational systems that are the key to delivering the quality of service required by our customers and the financial performance of our business. Functionally, these systems route and rate the calls, maintain the buy/sell margins, provided automated billing, margin and revenue analysis, process prepaid and postpaid Call Detail Records, or CDRs, monitor network performance in real time, and configure/provision services. By managing margins and network performance in real time, we are able to respond immediately to routing changes that result in negative changes in financial performance.
eCommerce
Web Portal
Off-net

18. Conclusion
Global adoption of VoIP: wholesale, enterprise, broadband consumers
VoIP is opportunity, not disruption
Partner with a leader to capture traffic and efficiencies
VoIP capital spending is moving from the core of the network to the edge, broadband deployment acceleration

19. Thank you.