Investor Presentaiton

Regulatory and Competitive Landscape in Bulgaria Communications Regulation Commission (CRC) as Key Regulatory Body CRC was established in February 2002 to replace former national regulatory authority - - Independent body to oversee regulation of the telecommunications sector Five members are political appointees with five-year terms Main power lies in preparation, granting, approval, supervision and termination of licences Enforces current telecommunications law (October 2003) which implements Acquis 2000 (harmonisation of national telecommunications legislation with EU law) Broad regulatory policy on the sector is to provide universal public access to effective telecommunications services at reasonable prices, harmonisation with EU law and full liberalisation Mobile number portability must be implemented by no later than January 1, 2007 CRC plans tender offer for three UMTS licenses; issuance not expected before March 2005 Bulgarian Mobile Landscape dominated by Two Major Players Mte tel Undisputed market leader (67.0% market share) Operating since 1994 Strong branding and first mover advantage with large corporates High-quality GSM 900/1800 network Glob Market entry in 2001 Major competitor to Mobiltel (31.4% market share) 100% owned by Greek OTE GSM 900/1800 network M МОБИФон First operator, since 1993 Owned by BTC (88%) and Radio Electronic Systems (12%) Steadily declining market share (1.6%) Analogue network (NMT450) GSM license granted recently TELE KOM AUS TRIA 32 32

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