Services on MTS 3G Network

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1 Services on MTS 3G Network Pavel Roytberg Product and Service Development Director MTS Russia

2 VAS structure in Russia VAS breakdown (in USD mln) 12.5% as % of ttl revenue* Messaging revenue** % 12.4% Content revenue Data revenue*** 12.8% 12.9% % Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Overall VAS shows strong dynamic Y-o-Y and Q-o-Q Data revenues growing faster than both messaging and content Messaging revenue growth through successful marketing campaigns and tariff launches such as SMS bundles, MMS at the price of SMS and Redtext, and new product launches such as Pocht@Online, SMS-Extra, Red Box, etc Content revenue growth through innovative services offerings such as the Company s ring back tone service called Good ok, J-Drive and an award winning WAP portal allowing users to download an exclusive collection of music, video, UGC, etc Growth in data revenues through EDGE deployment, active marketing promotions and tariff offers aimed at stimulating demand in data services such as: Tariff MTS Connect providing easy Internet access to subscribers computers; Tariff Onliner designed for active Internet users; WAP sites wap.mts.ru and wap.kids.mts.ru providing users with both educational and entertainment features * VAS roaming and VAS bundles in tariff plans are excluded **Only SMS PtP revenue ***Revenue from additional VAS services included Increasing data usage and a market-leading value-added services portfolio showcases potential for adoption of 3G-enabled products and services 2

3 3G Network: Services and Benefits Services currently available on 3G network Video calling Video conference calling Mobile broadband (MTS Connect and traffic packages) Audio/photo/video downloads 15Mb in 60 seconds Mobile access to at unforeseen speeds 3G-roaming 3G-messaging Benefits of 3G network Available to all MTS subscribers with 3G devices Better quality of the currently available services (internet access, multimedia download, games, ability to work with heavy file attachments) New services: video calling, mobile TV, web cams, videoon-demand streaming Complete compatibility with 2G Technology becomes easier to use 3

4 Mobile Broadband: MTS Connect and 3G Notebooks MTS Connect Launched in February 2008 Pricing Does not change from 2G 100Mb 290 roubles (approx. $12) 500Mb 1000 roubles (approx. $42) 1Gb 1500 roubles (approx. $64) Usage stimulation Free 3Gb 3G packages for all MTS Connect customers promotion during the summer Free 100Mb 3G for all voice customers promotion during the summer Internet advertising, POS materials, demos at sales locations MTS-branded PC card / USB modem Laptops with embedded 3G modem In August 2008, MTS will launch a solutions with Fujitsu Siemens and Microsoft Laptop with embedded 3G modem MTS sim-card and tariff plans included Microsoft OS ready for mobile broadband Free 100Mb monthly traffic for 4 months 12 laptop models available 4

5 Mobile broadband target audience and key benefits Corporate Market 3G router for small businesses РС-card / USB-modem for salespeople, mobile workers, management, etc. Mass Market Easy access to internet anywhere and anytime through notebook USB-modem (ADSL alternative where fixed line is not available) 3G router for internet access for multiple users KEY BENEFITS Easy internet access anywhere and anytime Remote access to corporate resources Increased productivity in areas with limited fixed broadband penetration Attractive pricing offers Easy installation and web access 5

6 Mobile TV Service (during 2008): TV programs on a mobile device Multiple news, business, music and entertainment channels Pricing: Unlimited access for a fixed monthly charge Affordable monthly payment Usage stimulation: Radio, press, internet, BTL Free promo-period Available on UMTS/EDGE devices that support streaming video (Real player or Windows media player) Available to all MTS subscribers Access through MTS wap portal or from Real player (Windows mobile) KEY BENEFITS Ability to watch TV away from home, TV access from anywhere Innovative solution in 3G network Greater image quality in 3G network Transparent and attractive pricing Ease of installation and usage 6

7 Video Calling Service: P2P video calling (simultaneous transfer of voice and video) Video conferencing Pricing: Free activation, per-minute tarification One minute costs: 4 roubles in St Petersburg region 10 roubles when calling outside the region on the MTS network 4 roubles + normal voice fee for other intercity / international calls Usage stimulation: All subscribers receive 30 free minutes to test the service by the end of the summer Internet advertising, POS materials, demos at sales locations KEY BENEFITS Unique 3G service, not available on 2G networks Ability to both hear and see who you talk to Calls are easy to make same as a normal voice call Promo packages of free in-network video calls 7

8 3G Messaging: MMS, Instant Messaging MMS Increasing message size Extended MMS formats (video, audio) Integration of presence services (IM, PTT) MMS blogging Instant Messaging Video chat Photo album Online games with presence services Extended IM subscriber profile (photo-, video-files) Banner advertisement in clients Mobile IM blogging Usage stimulation Free packages Internet advertising, POS materials Viral marketing, SMS campaigns 8

9 Mobile Corporate Market Mass Market online» TA: soho, SME Easy setup access to corporate s No changes required at corporate mail server Compatible to 100% mobile devices Push s through WAP/SMS/MMS «Office Online» TA: soho, SME Easy setup access to corporate server, s Large number of supported handsets Easy to work with corporate calendar, meetings High level of message protection «Mobile Mail» Easy setup access to any address Compatible to 100% mobile devices Push s through WAP/SMS/MMS Co-branding with TOP-3 (Mail.ru, Yandex & Rambler) Services for subscribers of the most popular mail portals No initial/monthly charges SMS notification for new messages KEY BENEFITS Easy access to everywhere Wide range of products for any segment is a key driver for GPRS/EDGE/3G penetration and usage Attractive prices 9

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