iBasis and Russian Mobile Operator MegaFon Interconnect to Exchange International Voice Traffic

Leading Russian Mobile Operator Enlists iBasis Premium Voice Service for High-Quality International Calling, Advanced Features and Global Reach Through a Single Connection

BURLINGTON, Mass. – 06/08/2010 – June 8, 2010 iBasis, a KPN company, today announced that OJSC MegaFon (MegaFon), one of the leading Mobile Network Operators (MNOs) in Russia, has interconnected with iBasis for high-quality international voice services. The interconnection enables MegaFon to route its international mobile voice traffic over the iBasis global network and enhances iBasis ability to complete mobile calls in Russia.

MegaFon is taking advantage of iBasis Premium Voice service, which provides MNOs very high-quality worldwide voice termination and advanced features including guaranteed transfer of CLI, support for international voice traffic on roaming number ranges (MSRN) to all mobile destinations, fax, ISDN data and ISUPv2. MegaFon joins more than 250 MNOs that are interconnected to iBasis for exchange of international voice and/or data.

iBasis Premium Voice service provides the service quality and direct routes MNOs need to quickly expand global termination as more international traffic originates on and terminates to mobile phones, said John van Vianen, CEO of iBasis. As one of the leading mobile operators in Russia, MegaFon enlisted iBasis to ensure highly reliable quality of international calling for its rapidly growing subscriber base. As more MNOs prepare to meet this demand via new IP interconnect models, such as the GSMAs IPX, the relationship with MegaFon will further strengthen our position in Russia.

MegaFon provides the widest wireless coverage and broadest range of 3G services in Russia. The company is licensed to sell its services throughout Russia and currently serves 52 million customers, accounting for more than 24 percent of all mobile subscribers in the country. MegaFon is the fastest growing mobile operator in Russia with revenue growth of 28 percent. The companys subscriber base grew by 16 percent in 2009 and by 22 percent in 2008.

Consistent with the rest of the region, mobile growth in Russia continues to be fueled by mobile subscriber expansion. According to market research firm Hot Telecom, there were an estimated 427 million mobile subscribers at the end of 2009 in Eastern Europe.

High quality is one of MegaFons competitive advantages, said Konstantin Solodukhin, vice president of Fixed Network Services and Carrier Business Development for MegaFon. Through cooperation with iBasis, MegaFon is obtaining direct access to mobile operators networks, including those within the KPN group, which will enable us to assure a high level of service quality for the companys customers.

About MegaFon
About OJSC MegaFon
OJSC MegaFon is the first all-Russian mobile operator in the GSM 900/1800 standard. The company was founded in 2002 as a result of the renaming and reorganization of OJSC North-West GSM and integration under one brand with CJSC Sonic Duo (Moscow), CJSC Mobicom-Kavkaz, CJSC Mobicom-Centre, CJSC Mobicom-Novosibirsk, CJSC Mobicom-Khabarovsk, CJSC Mobicom-Kirov, OJSC MSS-Povolzhie, CJSC Volzhsky GSM and CJSC Uralsky GSM. The license area of OJSC MegaFon, as well as that of 100 percent of its subsidiaries, covers the entire territory of the Russian Federation with a population of over 145 million. MegaFon develops its business based on the principle of maximum satisfaction for its subscribers, fair competition and information transparency. MegaFon makes use of advanced technologies, providing the companys subscribers new possibilities for communication and working with information. The set of high-quality, mobile communication services, unique for the Russian mobile market, is targeted both at individual and corporate subscribers.

About iBasis
Founded in 1996, 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 mobile operators, as well as outsourcing services for many of the worlds largest fixed and mobile operators and VoBB service providers. In December 2009, iBasis became a wholly-owned subsidiary of KPN. iBasis customers include KPN, KPN Mobile, E-Plus, BASE, TDC and many other large telecommunications carriers such as Verizon, Vodafone, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia, and Telefonica. 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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