1. www.ibasis.net opportunity begins with Delivering Enhanced IP Services to Carriers Philip Mutooni Snr. Manager BSS/OSS Engineering pmutooni@ibasis.net

2. iBasis, Inc. Founded in 1996 (Nasdaq: IBAS) Worlds Leading Wholesale Provider of Internet Telephony Services: - International Voice and Fax over IP - IP CallCard (prepaid, postpaid) - Internet Telephony Hosting - Unified Communications (OneCore)

3. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

4. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

5. The Internet Economy in Perspective Source: Measuring the Internet Economy. University of Texas, June 1999

6. Growth of the Internet Economy Source: Measuring the Internet Economy. University of Texas, June 1999 1995-1998 Internet Economy CAGR: 174% 1995-1998 Global Economy CAGR: 3.8% $5.3 BN $301.4 BN

7. Critical Transactions of the Internet Economy: Business to Business (B2B) Source: B2B boom. Business 2.0 Magazine

8. Number of years it took to reach 50 million users

9. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

10. iBasis Milestones Customers include 11 out of top 12 US-based carriers of international traffic Providing Global Open Architecture to Support Value- Added Services Deployed worlds largest Cisco Powered Network for Internet telephony Successful IPO November 1999 & Secondary Offering February 2000 (raised over $400M, fully funded)

11. Explosion in Worldwide Internet Communications Revenues In Billions Source: IDC, 1999 / Ovum, 2000

12. A Radical Shift is Redefining the Communications Industry NEW WORLD Data Packet-Switched Mobile, personalized Open Network encourages new services OLD WORLD Voice Circuit-Switched Fixed, generic Closed Network constricts innovation

13. Large-scale ITSPs Market-Space Defined C O N S U M E R P C T O P H O N E P H O N E T O P H O N E B U S I N E S S T O B U S I N E S S

14. Critical Success Factors Seamless integration with the PSTN Internet-based solution Toll quality Global network Superior technology platform

15. Seamless Integration POP Circuit-Switched Network POP INTERNET Circuit-Switched Network Alternate Routes iBasis Network Operations Center Assured Quality Routing

16. Our Customers are Major Carriers Communications Authority of Thailand

17. Why Major Carriers Choose iBasis Superior Quality Internet telephony services at low cost Speed to market Instant worldwide footprint Continuous innovation Industry expertise

18. Internet Central Offices INTERNET PSTN OC48 Switch SS7 / C7 Gateways Gatekeepers Multiplexers Routers Remote Access Backup Power DS-3 OC48 DS-3 iBasis ICO, New York City

19. Assured Quality Routing High Low Not Great PSTN Typical ITSP Circuit- switched Assured Quality Routing TM enables quality over the Internet Real time monitoring and alarming Traffic re-routing to PSTN before voice quality falls below established thresholds Judicious choice of ISPs to provide high speed backbone connection Q U A L I T Y S A V I N G S Internet Savings with High Quality Requires Proprietary Software

20. Web-based Customer Care: Interactive Traffic Analysis Center Enables customers to manage their operations efficiently Provides timely statistics on traffic volume and quality

21. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

22. The Hosting Model Regional carrier network without global reach

23. Business Considerations Time to market Managed growth Minimize risk Quality of experience New applications

24. The Hosting Model Regional carrier network gains instant global footprint, speed to market

25. The Hosting Model Regional carrier network now a Global Network and expands with rapidly growing iBasis Network

26. VoIP Requires Special Resources Human NOC engineers Storage engineers Traffic engineers IP architects Development engineers Systems NOC tools Personalization tools Provisioning tools High availability & redundancy IP billing & mediation

27. IP Billing & Mediation Combination of Expertise & Sophisticated Tools: Different pricing models Effective/efficient rate management Flexible service model support Multiple account hierarchy Real time & non real time information

28. Architecture and Components of Internet Telephony Hosting Hosted Facilities & Mgmt. Hosted Applications 7x24 NOC AQR iTrac Billing Settlements OSS VoIP-tuned Internet PSTN connection SS7, C7 Toll Free Phone number Access Gateways Gatekeepers Switches VAS Servers Equipment Hosted Applications Voice and Fax IP CallCard Unified Communications

29. Internet Telephony Hosting: Key Benefits Speed to market Instant global footprint Access to IP messaging expertise Leverage economies of scale Avoid costly investment and technology obsolescence Open competition cost structure Access to new applications

30. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

31. Hosting Unified Communications Voice Mail E-Mail Fax Mail - Carrier-class, IP-based unified voice, fax, email, voicemail services - Integrated with global VoIP infrastructure - Comprehensive, flexible operational support services - Best-of-breed technologies from Internet industry leaders - Standards-based for extensibility

32. Unifying Internet & Voice Services Wireless End Users iBasis Customers End Users iBasis Network Internet Wireline New Device Directory Servers Application Servers Media Store ISP/ASP Web Portal ISP/ASP Wireline iBasis is the brand behind the brand

33. OneCore: iBasis Unified Communications Infrastructure requirements IP Unified MessagingAsynchronous Message Exchange Voicemail Email Fax Content & Transaction Services Extensible Application Platform Web content Personalized, location-aware Transactions ISVs = new apps IP Communications Real-time Communications Single number reach Notification Paging Outdialing Scope of Solution

34. Agenda Internet Economics Background Overview of iBasis Business Innovative Business Models Example of Value Added Service: Unified Communications Conclusion

35. Observations on the NEW Internet Economy The issue and the challenge is not simply the Internet. - As they say in the U.S.: Its the economy stupid. The Internet sectors are interdependent. - Regulating one Internet sector will adversely affect the growth and development of the other sectors. The dynamism of the Internet Economy comes in part from the anarchy of a large number of small companies that compete. Educated workforce - Education is critical

36. VoIP and IP networks and circuits are more cost effective than circuit-switched networks Compensation mechanisms used in VoIP agreements tend to be more flexible and simpler than those used by traditional switched networks and operators (i.e. accounting rates) VoIP and IP networks and operators seek to provide latest value added services Source: A telecom scorecard 1999-2000: Consumer costs for basic services in the Americas. Alexis de Tocqueville Institution. Feb. 2000. http: www.adti.net. The Advantages of International Internet Telephony Networks: Costs and Flexibility

37. We convert circuit voice into packetized data. VoIP is platform for value-added services. We are a carriers carrier. Will never provide service to consumers. iBasis ICO will be collocated at a carriers site. iBasis ICO will purchase Internet and PSTN access through an authorized carrier. iBasis ICOs – Delivering Value Added Services

38. Hosting Solutions for Enhanced Services Unified Communications Audio Conferencing Voice Instant Messaging Voice Enabled Internet Content

39. www.ibasis.net opportunity begins with Thank You. pmutooni@ibasis.net