VIP Calling, Inc.

1
opportunity begins with
Delivering Enhanced IP Services to
CarriersPhilip Mutooni Snr. Manager BSS/OSS
Engineering pmutooni_at_ibasis.net
www.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

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The Internet Economy in Perspective
Source Measuring the Internet Economy.
University of Texas, June 1999
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Growth of the Internet Economy
301.4 BN
5.3 BN
1995-1998 Internet Economy CAGR 174 1995-1998
Global Economy CAGR 3.8
Source Measuring the Internet Economy.
University of Texas, June 1999
7
Critical Transactions of the Internet Economy
Business to Business (B2B)
Source B2B boom. Business 2.0 Magazine
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Number of years it took to reach 50 million
users
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Agenda

• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service Unified
  Communications
• Conclusion

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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)

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Explosion in Worldwide Internet Communications
Revenues In Billions
Source IDC, 1999 / Ovum, 2000
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A Radical Shift is Redefining the Communications
Industry
NEW WORLDData Packet-Switched Mobile,
personalized Open Network encourages new
services
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Large-scale ITSPs Market-Space Defined
P H O N E T O P H O N E
P C T O P H O N E
C O N S U M E R
B U S I N E S S T O B U S I N E S S
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Critical Success Factors

• Seamless integration with the PSTN
• Internet-based solution
• Toll quality
• Global network
• Superior technology platform

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Seamless Integration
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Our Customers are Major Carriers
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Why Major Carriers Choose iBasis

• Superior Quality Internet telephony services at
  low cost
• Speed to market
• Instant worldwide footprint
• Continuous innovation
• Industry expertise

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Internet Central Offices
iBasis ICO, New York City
DS-3
OC48
Switch SS7 / C7 Gateways Gatekeepers Multiplexers
Routers Remote Access Backup Power
PSTN
OC48
DS-3
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Assured Quality Routing
Internet Savings with High Quality Requires
Proprietary Software

• Assured Quality RoutingTM 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

High
Typical ITSP
S A V I N G S
Circuit- switched
Low
Not Great
PSTN
Q U A L I T Y
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Web-based Customer CareInteractive Traffic
Analysis Center
Enables customers to manage their operations
efficiently Provides timely statistics on
traffic volume and quality
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Agenda

• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service Unified
  Communications
• Conclusion

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The Hosting Model
Regional carrier network without global reach
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Business Considerations

• Time to market
• Managed growth
• Minimize risk
• Quality of experience
• New applications

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The Hosting Model
Regional carrier network gains instant global
footprint, speed to market
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The Hosting Model
Regional carrier network now a Global Network and
expands with rapidly growing iBasis Network
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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

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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

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

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Agenda

• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service Unified
  Communications
• Conclusion

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Hosting Unified Communications

• - 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

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Unifying Internet Voice Services
iBasis Network
iBasis Customers
iBasis Customers
End Users
End Users
Internet
iBasis is the brand behind the brand
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OneCore iBasis Unified Communications

• 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

• IP Unified Messaging
• Asynchronous
• Message Exchange
• Voicemail
• Email
• Fax

Infrastructure requirements
Scope of Solution
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Agenda

• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service Unified
  Communications
• Conclusion

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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

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The Advantages of International Internet
Telephony Networks Costs and Flexibility

• 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.
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iBasis ICOs Delivering Value Added Services

• 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.

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Hosting Solutions for Enhanced Services

• Unified Communications
• Audio Conferencing
• Voice Instant Messaging
• Voice Enabled Internet Content

39
opportunity begins with
Thank You. pmutooni_at_ibasis.net
www.ibasis.net