IBasis signs Danish phone deal

Internet phone company iBasis will take over Danish telecommunications company TDC's online phone service for five years, an Associated Press report said.

The Associated Press report quoted iBasis as saying it will pay TDC about $10 million in cash and expects $80 million in revenue per year from the deal.

As part of the deal, it will acquire the internet phone assets, contracts, office rental and employees of TDC subsidiary TDC Carrier Services US, the report said.

iBasis sells access to its international communications system through which users can have phone conversations over the internet, the report added.

The company also sells prepaid phone cards.

iBasis purchased Netherlands-based Royal KPN NV's global internet phone service in October to create one of the world's largest internet phone companies, the report further said.