iBasis VoIP Service Enables Telefonica to Extend Global Reach; iBasis Latin American Traffic and Revenues More Than Double In Past Year

iBasis, Inc., IBAS, the leader in advanced Internet-based voice communications, today announced that global carrier Telefonica has interconnected with The iBasis Network(TM) to expand international service. With this interconnection, Telefonica is able to route its international voice and fax traffic over iBasis' VoIP infrastructure, and iBasis is able to expand the volume of traffic it carries to and from the markets served by Telefonica in Latin America. Telefonica is the leading telecommunications provider for the Spanish and Portuguese speaking countries of the world, and has over 61 million fixed and mobile phone subscribers worldwide.

"We are delighted that global telecommunications provider Telefonica has chosen to connect to iBasis for expanded international service," said Ofer Gneezy, president and CEO of iBasis. "The Telefonica relationship further enhances our strategic position as a leader in Tier-1 VoIP services. With our connection to Telefonica's global footprint, we can provide broad, high quality coverage across Latin America and Europe for our carrier customers."

"Our choice of iBasis for international service reflects our confidence in their quality, reliability, and leadership in VoIP," said Alejandro Hume, Manager, International Voice Services, Telefonica. "Connecting to iBasis offers us strategic competitive advantage by efficiently expanding our global reach, while ensuring our customers call quality indistinguishable from that of traditional transport."

While the international voice services market is expected to be worth more than $70 billion, for most large carriers, international service is not core, and generally represents about 5% of revenues. At the same time, the cost of maintaining global service operations is disproportionately high. This is why large carriers continue to outsource increasing amounts of international traffic to efficient, Tier-1 quality VoIP carriers like iBasis.