Analysis of iBasis and Cisco Systems Joining Forces

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Event Summary

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 3, 2000-- Cisco Systems (NASDAQ: CSCO - news) and iBasis (NASDAQ: IBAS - news) are joining forces to deliver carrier-class, IP-based, Unified Communications services.

The Cisco Unified Communications (UC) solution uses the open Internet Protocol (IP) standard to unify communications methods that were previously disjointed -- e-mail, fax machines, voice mail systems, cellular phones, and the Web. The Cisco Open Network Exchange (uOne) application, a pivotal component of Cisco's overall UC solution, enables users to initiate and return voice calls and send and receive faxes, e-mail, and voice messages - independent of location, time or device.

iBasis, the leader in advanced Internet-based communications, will deploy the uOne application on its global IP network and make UC services available to service providers worldwide.

EffectNet, a rapidly growing application service provider and Cisco Powered Network partner will be the first iBasis partner to provide the Cisco uOne solution to its customers. With customer orders for 50,000 uOne mailboxes, initial deployments are expected to begin in the second quarter of 2000.

Market Impact

Cisco systems has teamed with iBasis to fortify its Internet hold through an Internet based Unified Messaging (UM) solution. EffectNet, an iBAS Partner, Cisco Partner and Application Solution Provider (ASP), will initially serve the product. The Cisco Unified Communication solution provides the following features, which will be device independent:

Voice Messaging: Call answer on busy/no answer, full-featured voice messaging, PC and telephone access, Web-based system administration.

Total Messaging: User administration via Web, inbound fax, fax redirect/outbound fax, text-to-speech.

Notification Services: Subscriber notification indicates new incoming messages.

Call Services: Outbound call management features for calling services, personal access reach, and outbound dialing from voice messaging platform or from within a voice message.

Cisco and iBasis will be competing with existing Unified Messaging vendors such as AVT Corporation and Active Voice. However, Cisco's UC solution is a complete solution including e-mail for turnkey configuration. The competitors in the market produce add-on, or snap-in, software to enable Unified Messaging solutions for existing mail systems. Cisco is well respected throughout the ISP/ASP community and can expect to enjoy immediate success with the UC product offering.

Pricing has yet to be made available for the initial offering, we expect MSRP figures to be made available prior to the end of the 1st quarter 2000 (probability 90%).

Expect to see a partnership in the near future with Puma Technologies (Probability 65%) for its device Enterprise synchronization solution to enhance the wireless reach of the UC product (Probability 70%).

User Recommendations

This is exciting news for members of the ASP community. Cisco and iBasis have essentially created a complete IP based, turnkey solution which will allow ASPs to enhance their offerings to their existing and future client base.

To the end user of the service, access to all communications, regardless of time, location or device, is time saving news. Rather than dialing in to check one's voicemail, fax, e-mail and calendar, they can check their pocket pc device, wireless PDA, or even a Wireless Access Phone (WAP) for needed information.

If you are a company looking towards one of the many ASPs on the market, and have a 6-month incubation period prior to implementation, make sure to add the Cisco Unified Communication to your list for evaluation.

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