TDC, iBasis Announce International Voice Service Agreement

iBasis, a KPN affiliate, and TDC of Denmark announced that the companies have reached an agreement that will make iBasis the exclusive provider of international voice services for TDC for a five-year period. iBasis will pay TDC approximately $10 million in cash, while the outsourcing arrangement is expected to generate approximately $80 million in new annual revenue for iBasis, the companies said. TDC will become a preferred partner for terminating iBasis traffic into the Nordic region. Other financial details of the agreement are undisclosed.

Upon completion of the agreement, which is pending customary approvals, iBasis will acquire the voice-related assets, contracts, office rental and employees of TDC subsidiary TDC Carrier Services U.S., which will be fully integrated into iBasis. Approximately 130 non-Nordic international wholesale voice customers, as well as all of TDCs interconnection and bilateral agreements for inbound and outbound international phone calls will be transferred to iBasis. TDC will maintain its Nordic customer base and its pan-Nordic reach, and will benefit from becoming iBasis preferred partner for termination of international traffic throughout the Nordic region.

iBasis www.ibasis.com