1. Policy and Migration Strategies: Exploiting Advanced Vision to Optimize Network Services and Applications Mawuli Tse Director, Africa ITU-D IP Symposium for Africa

2. iBasis Overview One of 10 largest carriers of international traffic Global Footprint – The iBasis Network – 90 countries; > 780 PoPs –182 international carriers 2002 Revenue: $165 million 2002 Traffic: 2.6 billion minutes Top-ranked International Wholesale Carrier* Minutes In Millions VoIP Revenue In Millions * Atlantic-ACM 2003 Carrier Report Card

3. Carriers Rank iBasis the Best International Wholesale Carrier, Two Years in a Row ITXC MCI WorldCom iBasis AT&T Primus Sprint COLT C&W 2003 Overall Scores

4. VoIP Growth Throughout Telecom Industry IDC, IP Telephony Market Forecast 2002 Worldwide Wholesale VoIP Minutes of Use (In Billions) Packet Telephony – Evolution of Public Voice Networks - Probe Research, Inc. 2002

5. VoIP Networks Enjoy a Significant Cost Advantage for ‘Switching’ and Network Management Systematically less expensive network architecture over life- cycle 30% savings is typical Economics of Open Protocols v Proprietary Platforms With Growth of Native IP Traffic, ‘Conversion’ Cost Lessens

6. The Light Network Strategy Private Network Long time to Market Significant Capital Expense Constrained by Network Plan Extensive Network Management A light network is a strategic advantage - but requires specific planning and coordination capabilities Public Network Short time to Market Low Capital Expense Flexibility in Global Connectivity Leverage Partner Network Management Leverage Internet devices for IP Telephony services

7. Public VoIP is the Winning Connectivity Model Avoids high cost of optical builds or leases Bandwidth is flexible – pay once, use anywhere The Internet is a priority for national development in much of the world Natural way to interconnect with IP-based end users and service providers –They have Internet access already

8. But What About Quality? 5.“Can’t Assure QoS Over the Internet” 4.“The Internet is Too Unpredictable” 3.“The Internet is for Hobbyists” 2.“The Internet Doesn’t Work” 1. “You Can’t Do Internet Telephony on the Internet” The Objections

9. High Quality is Achievable on the Internet The Internet works “By Itself” Between “Many Places, Most of the Time” The Internet is a “Network of Networks” -- Use of Multiple ISPs Creates “Path” Alternatives As Necessary, iBasis Establishes “Private Paths” Across the Internet iBasis’ Proprietary “Assured Quality Routing” Capable of Managing the Many Path Choices How it Works

10. “Works Many Places Most of the Time” ISPs have improved Quality and Reach DWDM and Terabit Routing Deployments Have Driven Incredible Increase in Backbone Performance Private Peering Has Likewise Improved Dramatically The Trend is Our Friend

11. Toll Quality on the Internet Internet Central Offices PSTN Internet SS7/C7/PRI Assured Quality Routing® Network Operations Centers USA -- Hong Kong Network of ICOs interconnected via multiple ISPs to form ‘virtual managed backbone’ Real-time monitoring of IP and Voice quality parameters Dynamic routing based on patent-pending technology to maximize voice quality

12. Creating “Private Paths” Targeted Use of “Edge Solutions” –Extending the Network where the Internet doesn’t yet go The iBasis “Virtual Private Backbone” –Using Route Injection to Force Traffic Around Congested Peering Points “IP Tandeming” –Necessary for Interconnecting POPs not Sharing iBasis-Subscribed GSP –Essentially a way of finding best place to hand traffic to a Local ISP whose routing we can’t directly control

13. Edge Solutions Internet IP VPN IPLC Some destinations not reachable via Internet… Edge Solutions Allow Traffic to Complete While Preserving Some of Internet Economics…

14. Proprietary Technology to Manage Quality and Complexity ThenNow Suppliers1 PTT/country Multiple wireline, wireless, metro Routing1 country/1 code100 codes just for Mexico! Pricing Bilaterals good for 3 months 500+ changes per day Profitability“Free” New technologies, processes for managing complexity or lose money iBasis AQR Patent Pending

15. Quality VoIP Requires Robust Network Solutions The Next Generation of VoIP Proprietary, patent-pending technology –Assured Quality Routing ® –PathEngine™ “Real-time” monitoring of every IP route –Latency –Packet loss –Jitter Continuous monitoring of PSTN metrics –Call completion (ASR) –Call Duration –Post Dial Delay (PDD) Results in automated, dynamic ISP selection and IP path selection for best quality of service on every call

16. Real-Time Monitoring & Traffic Management Fully-staffed 7x24, 365 days/year Redundant NOCs in Burlington, Mass. and Hong Kong Full network monitoring of servers, IP, and PSTN networks –Real-time, end-to-end analysis of call behavior –Event alarming –Performance measurement –Analysis of traffic patterns and network utilization –Event correlation –Trouble ticket management Remote access to each device and process

17. Answer Seizure Ratio Comparison Better Quality than Industry Benchmarks Country Industry Avg. Argentina 52% Brazil50%52% China 53% 58% Indonesia46% Israel59%64% Mexico47%50% Russia 39%45% Comparison based on average ASRs from six Tier One PSTN carriers and iBasis average ASR during 1H 2002.

18. Internet Telephony: Meeting the Needs of Global Carriers Incumbent New Carrier ProblemSolution –Overflow capacity –High volume termination –Manage multiple settlements –Tier One quality capacity –Broad termination coverage –Help settlement imbalances –Global footprint –Lower cost of transport –Outsourced service support –Global & Instant reach –VoIP efficiency –24X7 NOCs, customer service & support

19. Major Carriers Adopting VoIP ARGENTINA

20. Momentum Developing in Africa Zimbabwe PTC Ghana Telecom Sonatel - Senegal SotelTchad - Chad Telkom South Africa

21. Migration strategy to VoIP A turnkey POP –Co-Located at one of your switches –Small Footprint and Easy to Install –ISDN or C7/SS7 Signaling Options No capital expenditures –Save time and cost of establishing a TDM link –Up and running in 2-3 weeks following contract execution –Achieve your goals for volumes and margins Opportunity to directly experience VoIP technology and quality in a risk-free way –With option to acquire the POP in the future Best of breed technology –Cisco gateway –iBasis QoS probe Your dedicated ‘on-ramp’ to The iBasis Network –Scaleable capacity –Fully integrated with iBasis’ AQR technology to ensure QoS

22. Outsourcing International Traffic Helps manage settlements Expands efficiently global footprint Limits resources when international traffic is not core business – focus on domestic traffic & mobile customer base Facilitate capacity management Improves service margins Accelerate learning curve

23. Leveraging an existing VoIP Infrastructure for Enhanced Services Rapid service deployment A comprehensive infrastructure solution Reduced operating costs or technical staffing Immediate international footprint Global competitive termination rates Scalability & Flexibility of the platform

24. The Example of Outsourcing Prepaid Calling Card Services Fast ROI for Premium Services A real-time billing service for prepaid and postpaid calling cards A flexible and scalable platform to support high call volume & a large number of accounts A comprehensive set of tools to easily administer rate tables and customer accounts Prepaid, Postpaid origination and call termination in same gateway Fully brandable to fit corporate guidelines

25. OTEnet Case Study Interconnection with The iBasis Network for global Internet Telephony since 2001 OTE, the national carrier of Greece was privatized Accelerate creation of a new, fast-growing international service, offered by the OTE ISP subsidiary, OTEnet Over past 8 months, The network has supported a nearly ten-fold growth in OTEnet’s international traffic. OTEnet routes international voice traffic over The iBasis Network through an iBasis Internet Branch Office (IBO) facility, enabling an efficient, low cost, high quality IP-to-IP interconnection

26. Other Higher Margin Services Cost-effective alternative to PSTN backhaul Local access number portfolio: Local DID, National toll free, Premium rate for Service providers Origination, routing & termination managed by iBasis Termination to customer’s conferencing bridges Co-location option in iBasis ICOs Wholesale conferencing services

27. Why Partner with a Global Network Provider? Simplify your international operations –Immediate global network footprint –Reduce interconnection agreements Improve quality of international service –Quality superior or equal to PSTN Accelerate deployment without capital expense –Turnkey solution for POP deployment Reduce costs of international business –Lower cost of international voice traffic –Lower deployment costs & operating costs Increase revenue –Immediate revenue from termination –Access to higher margin services (pre-paid, conferencing)

28. Other Benefits Training & Knowledge Transfer –Technical assistance –Regulatory guidance Commercial support –Turnkey solution without capital investment – “plug & play” services Improvement of National infrastructure Quality

29. Thank you! mtse@ibasis.net