Rostelecom 2.0 – the new leader in the Russian market

Rostelecom 2.0 ownership structure

Revenue (2010)* USD 2 B

Market capitalization, (Jan,2011)

USD 4,8 B

Employees 19,000

Shares controlled by the State 50,7%

Backbone 160,000 km

Customers (DLD/ILD) 25 M

Traffic volume per month

voice 1,2 B min

data 290 PB

* Preliminary data

Rostelecom 1.0 at a glance

42%57%

36%29% 35%

58%

DLD/ILDTelephony

Internet Access Termination & Hubbing

Leased Lines VPN IP-Transit

Position of Rostelecom & Inter-Regional Companies in the key segments in 2010

4

Fix telephony30 M

broadband – xDSL 6.5 M

broadband – FTTx 0.9 M

Mobile 11 M

Subscriber base (beginning of 2011)

Fix business opportunities of Rostelecom 2.0

• Expanded network coverage • Better quality coverage• Advanced development of NGN • Plenty of access technologies• Increased broadband penetration based on FTTx• Extended product portfolio – 3-play products• Strong positions at wholesale, corporate, and consumer market segments• Improved operational efficiency• Stable financial position Expanded coverage

5

New operator, Rostelecom 2.0 Competitive Strengths

• Strong fundamentals supporting growth in the Russian telecommunications market.

• Leading/significant positions in all segments of the Russian telecommunications market.

• Largest network infrastructure in Russia, with regulatory permits to support future growth.

• Strong brand awareness and marketing expertise.

• Solid financial platform for further development.

• Experienced management team.

Telecommunications network is ready to meet growing demand for bandwidth

2010Increase the capacity – up to 3.2 Tbps 100% reservation

New line

Backbone connectivity

West

South

East

Cross-border link

• Over 10 direct cross-border links with neighboring countries: Estonia, Latvia, Lithuania, Finland, Ukraine, Belarus, Georgia, Azerbaijan, Kazakhstan, China and Japan for transit services to Europe, South-East, Middle East, and Japan.

• Partners’ infrastructure for connectivity to Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Armenia, Iran.

IP/MPLS Network Capabilities

Sweden, Stockholm, Telecity Bromma, Mariehallsvagen 36,

Germany, Frankfurt, Ancotel GmbH, Kleyerstr. 90

London, UK, Telehouse East, 14 Coriander Ave

China, Hong Kong, HK Colo

Netherlands, Amsterdam, Global Switch Amsterdam

International POPs

Core router PE router Data center

To provide IP network connectivity Rostelecom has presence in DE-CIX, KleyrexIX, Netnod, LINX, AMS-IX, MSK-IX, sets up interconnections to Tier 1 ISPs and private peers with leading telcos.

OJSC Rostelecom14, 1st Tverskaya-Yamskaya St., Moscow, 125047, Russia Phone +7 499 972 8283Fax +7 499 972 8118www.rt.ru