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Kuat Dombai Corporate Communications Director

GSM Kazakhstan – K Cell. October 22, 2007. Kuat Dombai Corporate Communications Director. Kazakhstan Mobile Market Today 10 Million Mobile Users 70% penetration by the end of 2007 GSM Users - 96%, CDMA – 4%

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Kuat Dombai Corporate Communications Director

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  1. GSM Kazakhstan – K Cell October 22, 2007 Kuat Dombai Corporate Communications Director

  2. Kazakhstan Mobile Market Today 10 Million Mobile Users 70% penetration by the end of 2007 GSM Users - 96%, CDMA – 4% Operators & Market Shares: GSM Kazakhstan (K Cell, Activ) – 49%, VympelCom (Beeline) – 46%, Altel (Dalacom, Pathword) – 4%, Neo – 1% Technologies: GPRS, EDGE, 3G trial expected by the end of 2007

  3. Figure 1. Cellular communication usage among people living in oblast centers of Kazakhstan in 2006 and 2007 years (N1=1000, N2=1000)

  4. Figure 2. Distribution of users by level of monthly cellular spending and their inputs to total cellular spending (N1=598, N2=729)

  5. Figure3. Share of cellular brand users in 2006 year (oblast centers, Kazakhstan, N=598)

  6. Figure 4 Importance of cellular service features (three answers possible, N1=598, N2=729)

  7. GSM Kazakhstan The first to introduce GPRS, WAP and MMS. And the only operator in Kazakhstan which provides EDGE (launched December 2004). 3G on offer Widest Coverage – 1.165 population points.Currently 100% of the network supports GPRS 1.200 direct employees; over 50.000 indirectly employed Over $1 bln investment by 2008 ($200 mln in 2007) Roaming to over 200 operators in 120 countries, GPRS roaming partners in 32 countries Shareholders: FinTur (51%), Kazakhstelecom (49%). Other Assets: AzerCell (Azerbaijan), GeoCell (Georgia), MoldCell (Moldova) In acquisition: CosCom (Uzbekistan), 2 operators (Tajikistan), 1 operator (Afghanistan)

  8. K Cell Coverage Area

  9. Government & Social. Supporting 50 top competitive nations Economy Diversification / Building Innovative Kazakhstan Over $1 mln. Spent for Social Programs K Cell Innovation Fund - project starts in 2007 in cooperation with Ministry of Education and the World Bank. K Cell Business Management Institute established May 2005 Over 40 CSR projects were implemented in 2007 in the spheres of education, healthcare, sports and national heritage support programmes.

  10. Key Issues Regional Expansion. 14 direct offices and over 100 express service centres in Kazakhstan. Completing new assets acquisition and looking into new opportunities Service Reach & Quality 3G rollout upon license receipt

  11. BEST COVERAGE BEST QUALITY MOST ADVANCED SERVICES AND BEST CUSTOMER CARE AFFORDABLE PRICES HIGHLY QUALIFIED HUMAN RESOURCES

  12. TO HAVE GOOD AND TRANSPARENT CORPORATE GOVERNANCE TO KEEP CREATING PARTNERSHIPS WITH GOVERNMENTAL AND NON-GOVERNMENTAL LOCAL ENTITIES TO BE AN ATTRACTIVE WORKING ENVIRONMENT

  13. KAZAKHSTAN LEADS,K-CELL LEADS

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