Post on 04-Jun-2018
iBasis Overview
#1 International Wholesale Carrier*
• One of 10 largest carriers of international traffic
• Global Footprint – The iBasis Network– 90 countries; 700 PoPs– 160+ international carriers
• 2002 Revenue (est.): $180 - 200 million• Annual run-rate > 2.5 billion minutes• Average daily minutes: 7.6 million
* Atlantic-ACM 2002 Carrier Report Card
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700
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
051015202530354045
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Minutes In Millions
Revenue In Millions
iBasis Named #1 International Wholesale Carrier
Overall Score:
7.06.05.5 5.75 6.25 6.755.25 6.50
Atlantic-ACM2002 International Wholesale Carrier Report Card
One of the Top International Carriers
0 2000 4000 6000 8000 10000 12000 14000
KDDI
TelMex
Singapore Telecom
Teleglobe
PTT Telecom (KPN)
PCCW HK Telecom
Bell Canada
Telefonica
China Telecom
Swisscom
iBasis
Telecom Italia
Cable & Wireless
Sprint
France Telecom
Deutsche Telecom
British Telecom
ATT
Worldcom
millions of minutes
Source: Telegeography 2002*iBasis based First Half ‘02 traffic volume
International Telecom: Large and Growing
132.761.633.5Minutes of Int’l Traffic(billions of min.)
31%5%<1%Market Share of New Carriers
50%72%86%Top 20 Carriers’ Share of Traffic
49186Countries Permitting Competition
$70$55$37Revenues from Int’l Traffic(billions of US$)
200019951990Indicator
Source: Telegeography 2002
Explosion in Worldwide VoIP
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$5
2001 2002 2003 2004 2005
Worldwide Wholesale VoIP Revenues (Billions $US)
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2001 2002 2003 2004 2005
Worldwide Wholesale VoIPMinutes of Use (In Billions)
iBasis has 13% share of Int’l VoIP TrafficIDC, IP Telephony Market Forecast 2002
iBasis Services
• International Wholesale Voice ServicesOrigination and termination of voice and fax traffic
• IBOxpress Enables Carriers to Originate and terminate international traffic and prepaid traffic over the iBasis Network w/o capital expense
• IP CallCard A full turnkey prepaid & postpaid platform leveraging the iBasis IP infrastructure
• ConnectPoint Global Access services Local access numbers that terminate to service providers’ platform, conference bridges, prepaid server or IVR in any location and country
Breadth & Depth of International Coverage
Meet carriers needs• Comprehensive outsourced worldwide
coverage• Full country coverage with overflow capacity
& redundancy• Termination in select destinations using
iBasis direct routes
Match carriers’ requirements• Competitive prices• Completion rate • High quality
The iBasis Network™
Largest International Cisco Powered Network for Voice on the Internet
Internet Central OfficesInternet Branch Offices
Over 700 Points of Presence in 90 Countries
Network Operations Center (Hong Kong)
Network Operations Center (Burlington)
Challenges facingSouth East European carriers
• Diverse regulatory frameworks and markets
• Low teledensities and underdeveloped infrastructure
• Lower level of foreign investment
• Rapid progress towards modernization & liberalization
• Growing demand for services
International VoIP: Strong and Growing
• Improves service margins
• Efficiently expands global reach
• Provides competitive advantage
• Quality indistinguishable from PSTN
• Penetration on many routes exceeds 20%
• 6% of global traffic –double the level in 2000
International VoIP Forecast, 2000-2006
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20,000
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60,000
70,000
80,000
90,000
100,000
2000
2001
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2006
mill
ion M
OU
0%
5%
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15%
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30%
35%
40%
45%
50%
penetr
ation
Million MOU PenetrationSource: TeleGeography 2002, Probe Research 2001
Global Circuit-switched Deployments Shrinking
• VoIP equipment deployments growing
• Circuit-switched equipment deployments declining
• VoIP being adopted by leading carriers
–Cable & Wireless
–BT
–SBC
–China Unicom
–Sprint
Global Equipment Sales, 2000-2006Circuit Switched vs IP
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$10
$15
$20
$25
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2001
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$U
S b
illi
on
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$1
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$2
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$3
$U
S b
illi
on
Circuit Switched Equip IP Toll Gateways
Source: Wintergreen Research 2001, IDC 2001
VoIP: A Worldwide Phenomenon
Worldwide VoIP Growth 57% (total traffic growth 15%)
VoIP Growth Rates by Region 2000 - 2006
Avera
ge A
nn
ual G
row
th o
f V
oIP
Min
ute
s %
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N America Latin Amer Af & M EastW Eur E & S Eur Asia Pac
Origination Termination
Source: Probe Research 2001, TeleGeography 2002
Same Trend Underwayin South East Europe
• Regions
• Regulations
• Infrastructure capacities
• Economic development
• Culture and history
Varying markets Same VoIP Benefits• Lower costs
• Improved service
• Increased access &
connectivity
• Advanced technology
transfer
• Economic development
South East Europe Seeing Growth in VoIP Termination
International Inbound VoIP Traffic
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800
900
2000 2002 2004 2006
min
ute
s (
mil
lio
n
Croatia Greece Turkey Bulgaria Romania
Source: Probe Research 2001
VoIP Origination Also Growing
International Outbound VoIP Traffic
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1,000
2000 2002 2004 2006
min
ute
s (
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lio
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Croatia Greece Turkey Bulgaria Romania
Source: Probe Research 2001
VoIP Penetration in South East Europe
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2001 2006
Inbound Outbound
• VoIP penetration will increase four-fold in the next five years
• iBasis traffic in the region grew 217%from Q3 00 to Q3 01
International: Not Core for Most Major Carriers
% Revenue from International Traffic
0%
5%
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15%
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25%
30%
AT&T
Belga
com
Deuts
che
Tele
com
Fran
ce T
elec
om
Sprin
tSw
issc
omTe
leco
m I
talia
Tele
fonic
aTe
lmex
Tels
tra
Wor
ldCo
m
OTE
Sing
apor
e Te
leco
m
Source: TeleGeography 2002
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
The Move to VoIP in The Region
• Predicted to post four-fold growth in VoIPtraffic by 2006 (Probe Research 2001).
• iBasis provides international service in Bulgaria, Greece, Romania, and Slovenia
• More than 45 European carriers are connected to iBasis for international service
• Traffic growth in Southeastern Europe: + 173% from 2000 to 2001
VoIP is Poised for Growth
• Governments see VoIP as “Leapfrog” technology, growth
driver
– China
– Latin America
– Africa
– Central & Eastern Europe
• Opportunities to capture new revenues– International service expansion
– Value-added services
• Carriers outsourcing international service to VoIP providers
to focus on “core” domestic businesses– Fixed-line
– Wireless, etc.
VoIP: Threat or Opportunity?
• Reduces capital expenditure, operational & transport costs
• Helps manage settlements• Provides instant global footprint• Offers access to new markets• Enables new services• Delivers PSTN reliability & quality