iBasis Growth in Latin America Continues as Movistar Panama Interconnects for Fixed and Mobile Voice

IP-Interconnect Enables Panama’s Second-Largest Carrier to Bring High Quality, Low Cost International Calling to Customers

BURLINGTON, Mass. – 01/10/2011 – iBasis, a KPN company, today announced that Panamas second-largest telecommunications carrier, Telefnica Moviles Panama, S.A. (Movistar Panama) has interconnected to its network for the exchange of international fixed and mobile phone calls. The deal furthers iBasis strong presence in Latin America, as well as its long-time relationship with Telefnica, S.A. One of the worlds leading wholesale carriers of international long distance calling, iBasis operates a global network that spans more than 100 countries, delivering more than 24 billion minutes of voice traffic annually.

The IP-interconnect with iBasis enables Movistar Panama to leverage the greater cost-efficiencies of iBasis global network footprint, which includes both traditional TDM and advanced VoIP infrastructure, resulting in high quality, lower-cost international calling for customers throughout the country. The connection also extends iBasis wholesale termination capabilities in Panama, providing more reliable routes and competitive pricing for its carrier customers and consumers of the companys retail prepaid calling cards and Pingo Web-based services (www.pingo.com).

The agreement enhances iBasis leadership in Latin America, the worlds most rapidly developing telecom market. Based on data from industry research firm TeleGeography, iBasis already carries approximately 25 percent of the worlds phone traffic to the region. According to Cisco Systems recent Visual Networking Index, Latin American consumer and business IP traffic is expected to increase at a 51 percent compound annual growth rate between 2009 and 2014.

Cost efficiency, without sacrificing reliability, is of great importance to our customers and iBasis delivers the perfect blend of service, said David Diaz, Manager of International Long Distance, Interconnection and Roaming for Telefnica Moviles Panama, S.A. The efficiencies offered by IP are undeniable. Not only does iBasis allow us to meet our customers needs most effectively right now, they provide us with a platform to quickly bring new services to market in the future, ensuring our ability to compete and grow.
About Telefnica Moviles Panama, S.A.
Telefnica Moviles Panama, S.A. offers voice, wireless internet and data services to all of Panama, as well as wireless intranet and other corporate products. It is the second largest carrier in the country with more than 1.5 million mobile customers and roughly 80 percent of the population using its pre-paid service. It is a subsidiary of Telefnica, S.A., one of the largest telecommunications companies in the world by market capitalization and number of customers. The activities of Telefnica, S.A. are centered mainly in business fixed and mobile telephony, with broadband as a key tool for the development of both. Telefnica, S.A. has a strong presence in Spain, Europe and Latin America, operations in 25 countries, and a customer base of 268 million. More information can be found atwww.telefonica.com.

Telefnica Latin America which encompasses 13 countries in the region posted sales increases of 11.7 percent in the third quarter 2010, with revenues from the first 9 months rising 10.7 percent, compared to 2009 figures.

About iBasis
A wholly-owned KPN company, iBasis is a leading wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services and enhanced services for mobile operators. The company offers a comprehensive portfolio of voice termination services, value-added messaging, signaling and roaming services for many of the worlds largest fixed and mobile operators and VoBB service providers. iBasis customers include KPN and its mobile operators, KPN Mobile, E-Plus, and BASE, and many other large telecommunications carriers such as Verizon, Vodafone, China Mobile, China Unicom, IDT, Qwest, Skype, TDC, Telecom Italia, and Telefnica. The company can be reached at its worldwide headquarters in Burlington, Mass., USA at +1 781-505-7500 or on the Internet at www.ibasis.com.

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