Danish telecommunications firm taps iBasis
Burlington's iBasis Inc. and TDC, a Danish telecommunications company, today announced that they have agreed to make iBasis the exclusive provider of international voice services for TDC for a five-year period.
A wholesale carrier of international long distance telephone calls, iBasis is also a provider of retail prepaid calling services and enhanced services for mobile operators.
IBasis said it will pay TDC about $10 million in cash, while the outsourcing arrangement is expected to generate about $80 million in new annual revenue for iBasis.
"Carriers are increasingly recognizing that they can focus more effectively on meeting the challenges and opportunities of their core retail business by outsourcing the commoditized international voice business to specialized wholesale providers like iBasis," Ofer Gneezy, president and chief executive of iBasis, said in a statement.
(By Chris Reidy, Globe staff)
