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ROSTELECOM: Transit Europe –AsiaThe New Opportunities

Moscow 27.10.2011

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FACTS & FIGURES

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ROSTELECOM AT A GLANCE, 1Q 2011

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29,2 mln fix line subscribers

7,4 mln broadband subscribers

5,5 mln pay TV subscribers

13,8 mln mobile subscribers

6 bln minutes of voice traffic per month

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OUR BACKBONE NETWORK DEVELOPMENT 4

Current capacity – 3,2 Tbps Backbone length– 500,000 km

Local backbones–2,6 mln km

New transit routes to Iran, China

TEA upgrade up to 200 Gbps New EPEG cable system

2012 2012

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OUR IP/MPLS NETWORK

• UK, London: LINX

• Sweden, Stockholm: Netnod

• Germany, Frankfurt: DE-CIX, KleyrexIX

• Netherlands, Amsterdam: AMS-IX

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INTERNATIONAL PoPs

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Source: Renesys, Connectivity rating in Russia, September, 2011

Efficient Connectivity 6

Rostelecom leads both of them

In 2011 there are over 100 notable players at the national wholesale and retail Internet markets

AS № AS №

OUR IP NETWORK CONNECTIVITY

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NEW PROJECTS

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EUROPE-PERSIA EXPRESS GATEWAY (EPEG)

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EPEG consortium strategy is to increase ME region connectivity via new transit traffic system that will go from Oman to Frankfurt through Iran, Russia and Western Europe.

A BRAND NEW HIGH CAPACITY FIBER OPTIC CABLE SYSTEM EPEG WILL LINK EUROPE WITH MIDDLE EAST IN MAY, 2012.

EPEG CONSORTIUM MEMBERS will build and develop their part of the network.

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EPEG KEY FEATURES

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EPEG IS A NEW RELIABLE AND PHYSICALLY REDUNDANT EU-ME ROUTE

Short route – 9,430 kmLong route – 10,100 km

• SMW-3• FLAG• TWA1• MENA

• GBI• EIG• POI• Omran

• Ancotel• Interxion

CAPACITY

Design - up to 3,2Tbps Initial - 540 (54x10) Gbps

CALCULATED RTD

Short route - 91.97 msLong route - 98.51 ms

DISTANCE

EPEG geographic routing

SERVICES

10G wavelength

LEASE OPTIONS

IRUMonthly basis

Barka

Frankfurt am Main

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NEW TRANSIT ROUTESTO MIDDLE EAST

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ROUTE runs via Russia - G-R submarine cable – Georgia –ArmeniaCAPACITY – N х10G. This route becomes a second available one from Europe to Middle East via Russian territory in addition to the existing route via Russia and Azerbaijan.

EUROPE – IRAN

ROUTE runs via Russia, Kazakhstan, and Uzbekistan. New route enables traffic transit to Afghanistan and provides the most reliable connectivity between Europe and Afghanistan at the present time.

EUROPE – AFGHANISTAN

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NEW TRANSIT ROUTESTO ASIA

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EUROPE – CHINA

ROUTE runs via Russia and KazakhstanCAPACITY – N х10G.This new route was recently constructed by Rostelecom, China Telecom, and KazakhTelecom. At the moment it becomes the shortest available route between Chinaand Europe.

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TRANSIT EUROPE-ASIA ROUTE UPGRADE ( -2)

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Rostelecom will upgrade the TransitEurope-Asia (TEA) route up to200 Gbps in 2012 to offer competitive high capacity connectivity from Europe to China and Japanvia Russian territory.

This fully terrestrial path runs from Europe to Hong-Kong over DWDMnetworks of Rostelecom and ChinaTelecom, and extends to Tokyo viaprotected Russia-Japan CableSystem (RJCN) and KDDI network.

TEA-2 SYSTEM WILL BECOME A LOW-LATENCY ROUTE ALTERNATIVE TO SUBSEA CABLE SYSTEMS PROVIDING 10G WAVELENGTH TO THE MARKET ON IRU AND MONTHLY BASIS.

RFS DATE – 1Q, 2012

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OUR CONTACTSOJSC Rostelecom14, 1st Tverskaya-Yamskaya st., Moscow, 125047, RussiaPhone +7 499 999 8283Fax +7 499 999 8222www.rt.ru