Responding the Challenges of Continuing IP Traffic Growth Caspian Telecoms, Istanbul, Turkey, 18 th April 2013 Konstantin Novikov Wholesale, CIS countries

Eurasia Highway 2 IP TRAFFIC DRIVERS IN CENTRAL & EASTERN EUROPE For past five years IP grew 4.6 times in Central & Eastern Europe Private customers consume over 80% of total IP traffic Mobile data grow fast, but it is still on enfant stage in traffic volume Video is the contributor 1 in traffic volume Source: Cisco, 2012

Eurasia Highway 3 BROADBAND SERVICES IN RUSSIA Source: IKS Consulting Penetration of broadband services will reach ~58% of total households that is closed to top limit While number of broadband subscribers is going to saturation, a heavy video supports total traffic growth As a result telecom carriers have to transit more and more IP traffic High-Definition Video Standard-Definition Video66778 Short-Form Video33345 Russia: MB per Minute for Internet Video Source: Cisco

Eurasia Highway 4 IP transit demand is fast growing segment, CAGR 80% in Russia generates 65% of total international IP uplinks in CIS ~ 50% of CIS countries uplinks (excluding Russia) go through Russia Geographically IP traffic is focused to: Russia ~ % Europe ~ % Others < 3 - 5% IP TRANSIT VIA RUSSIA Source: TeleGeography

Eurasia Highway 5 TTK AT GLANCE Largest Fiber-Optic Backbone in Russia length km transmission capacity up to 3200 Gbps over 1000 access nodes in 78 Russian regions 20 cross-border interconnections telecom bridge between Europe & Asia Comprehensive Telecom Solutions layout of enterprise networks based on advanced technologies full spectrum of fixed voice services network security & monitoring building of telecom infrastructure wholesale services Guaranteed Quality certified services information security SLA Own Access Infrastructure local access networks in more than 180 Russian cities international gateways in London, Frankfurt, Amsterdam, Stockholm, Hong Kong, Tokyo

Eurasia Highway 6 MARKET POSITIONS Market Share in the Russian Market Source: Direct Info, 2012 Enterprise Networks Europe – Asia Transit (via Russia) Telecom Carrier Non-Voice Services Enterprise Long-Distance Voice Services TTK is fifth largest telecom operator in Russia - CNews Analytics 2012

Eurasia Highway TTK BACKBONE 7 Transmission Capacity up to 3200 Gbps Multiple ring topology & high service availability – up to Automatic restoration switch for redundant services < 55 ms Service restoration time < 4 hours Maintenance team - every 200 km 22 international gateways: Finland, Estonia, Lithuania, Latvia, Poland, Belarus, Ukraine, Azerbaijan, Kazakhstan, Mongolia, China, North Korea, Japan International nodes: London, Stockholm, Amsterdam, Frankfurt, Hong Kong, Tokyo Eurasia Highway

8 Today TTK offers both IP transit and clear channels from the Russian border to major European destinations: London Amsterdam Frankfurt Stockholm Hong Kong Tokyo Capacity – up to 10GE or 10G Total transit TTK capabilities are exceeded 3 Tbps in Central Russia due to implementation of 10& 40G DWDM systems and development 10GE IP MPLS > 3 Tbps TTK CAPABILITIES

8 Testovskaya St., Moscow, RUSSIA tel.: +7 (495) fax: +7 (495) Eurasia Highway 9 Thank you for attention!