Investor Presentaiton

Rostelecom Traditional business - Fixed Broadband ➤ Solid Fixed line telephony better then expected Rostelecom Market share 2011 Market growth CAGR potential '11-'16 2011-2016 present with strong potential Rostelecom 40% Vimpelcom MTS 11% 11% ER- Telecom 10% 177 113 Akado 4% +9% 2011 2016 Others 25% Source: AC&M - Consulting, by residential subs Source: iKS-Consulting, J'son Consulting Lines loss trend vs peers 2009 ➤ Better then world's peers -1% 2010 -1% 2011 Rostelecom Market share 2011 -3% Rostelecom -6% -6% 70% -8% -8% -9% 10% -12% AT&T -12% -12% British Telecom France Telecom Rostelecom Others 18% MTS 12% Key focus is to keep the number of paying households and up-sell current fixed line customers to other services (broadband, IPTV, mobile) 11 www.rostelecom.ru

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