iBasis Completes Successful GSMA Trial Of IPX Interconnect Service And Standards

Extensive Test a Significant Step in Ensuring Commercial Transactions and Delivery of Robust IP Applications between Mobile and Fixed Telecom Carriers

BURLINGTON, Massachusetts and COPENHAGEN, Denmark – 02/11/2008 – iBasis (NASDAQ: IBAS), a KPN affiliate, today announced it has completed an extensive trial of the IP eXchange (IPX). Overseen by the GSM Association (GSMA), the IPX is being developed as a private global Internet protocol (IP) backbone open to any telecommunications company adopting necessary technical and commercial standards. Once established, the IPX will provide fixed and mobile service providers a technical and commercial platform to exchange IP-based traffic — including person-to-person voice, content and emerging consumer and business applications — securely and with guaranteed quality of service (QoS) levels.

It is widely believed that the IPX and effective standards will result in the migration to IP of a large volume of voice traffic from mobile networks and the proliferation of innovative IP-based services generating substantial growth in the global communications market.

The iBasis-lead trial tested much-needed interconnect service standards of the IPX for critical commercial functions including secure billing across multiple networks and platforms.

During the trial, an iBasis solution for managing IP traffic was successfully demonstrated, illustrating the IPX’s ability to facilitate commercial transactions and deliver secure, reliable and high-quality IP services across a network linking mobile and fixed telecom operators in Europe and Asia. The year-long trial was completed on January 18, 2008 and incorporated more cases than any IPX testing initiative to date. The trial was performed in close cooperation with Alcatel-Lucent, which provided expertise on system integration and IMS technology in a multi-party environment. NextPoint provided SBC equipment and expertise.

“We strongly believe the IPX model will have a very significant impact on the industry,” said President and CEO of iBasis, Ofer Gneezy. “With the rapid rise of IP communications, it is particularly crucial that all carriers and service providers involved have an effective interconnection for handling advanced mobile data services and the growing volume of mobile and fixed VoIP traffic.”

The iBasis trial encompassed intercontinental calling, interoperability between two distinct IMS platforms and IPX platforms from different vendors, as well as fixed-to-mobile testing. Utilizing a fixed retail operator in Europe and a mobile operator in Asia, tests covered such areas as verification of the IPX transport layer to ensure it is suitable to carry voice traffic in the SIP-I profile C interconnectivity protocol; measurement of QoS; the correct transport of CLI and DTMF; testing over different geographical distances and under varied scenarios; call forwarding, specific charging test cases and more. Call detail records and traces of all parties compared showed no inconsistencies. Results required levels better or equal-to latency thresholds specified in IR34 for conversational class traffic.

iBasis’ IPX trial addressed key principals identified by the GSMA as vital for a successful and sustainable IP Interworking solution. Areas of particular importance include:

  • Openness — All potential “players” in the delivery of IP services have the option to become involved;
  • Quality — The IPX is focused on end-to-end quality, requiring a participating party to voluntarily agree to be responsible for the performance of the next organization in the transit chain. This includes committing to specified Service Level Agreements (SLAs);
  • Security — The commercial and technical design of the IPX has been developed and tested to offer protection on many fronts, including commercial agreements, attack prevention (the IPX is not addressable from the Internet), individual traffic segregation to prevent localized security breaches and keeping core networks probe-free, and
  • Cascading Payments — Commercial agreements set on principles described in a mutually understood and agreed upon business model. Similar to the traditional voice model, this will encourage healthy competition, while assuring QoS and SLAs.
    A second phase of the iBasis IPX trail will begin during the second quarter of 2008.

About iBasis

Founded in 1996, iBasis (NASDAQ: IBAS) 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. iBasis customers include KPN, KPN Mobile, E-Plus, BASE, and many other large telecommunications carriers such as AT&T, Verizon, Vodafone, China Mobile, China Unicom, IDT, Qwest, Skype, Telecom Italia, Telefonica, and Yahoo. In October 2007, iBasis acquired KPN Global Carrier Services to create one of the three largest carriers of international voice traffic in the world, and KPN became a majority stockholder of iBasis. On a pro forma basis, the combined company carried approximately 24 billion minutes of international voice traffic in 2007. The Company can be reached at its worldwide headquarters in Burlington, Mass., USA at +1 781-505-7500 or on the Internet athttp://www.ibasis.com/.

About the GSMA

The GSM Association (GSMA) is the global trade association representing more than 700 GSM mobile phone operators across 218 countries and territories of the world. In addition, more than 200 manufacturers and suppliers support the Association’s initiatives as key partners. The primary goals of the GSMA are to ensure mobile phones and wireless services work globally and are easily accessible, enhancing their value to individual customers and national economies, while creating new business opportunities for operators and their suppliers. The Association’s members serve more than 2.5 billion customers – 82% of the world’s mobile phone users.