Head of International Affairs and European Integration Division NATIONAL COMMISSION FOR THE STATE REGULATION OF COMMUNICATIONS AND INFORMATIZATION International Roaming Current situation on the national roaming market in Ukraine LILIIA MALON Head of International Affairs and European Integration Division Prague 11-12 May 2017

CONTENT Regulatory Framework in telecommunications (Mobile Communication) 1 2 Description of the Ukrainian telecom market 3 Description of the Ukrainian roaming market 4 Tariff plans of Ukrainian mobile operators Page 2

Law of Ukraine “On telecommunications” 1 Regulatory Framework in telecommunications (Mobile Communication) 1/2 Legislative Framework for the Provision of Mobile Communication Services Step 1. Registration of the operator in the Register of operators, telecom providers Step 2. Receipt of license to provide mobile communication services Step 3. Receipt of license for the use of the radio frequency resource Operator Step 4-5. Receipt of authorization to use the radio frequency resource and numbering resource Law of Ukraine “On telecommunications” Page 3

1 Regulatory Framework in telecommunications (Mobile Communication) 2/2 Tariff Regulation The tariffs for telecommunication services are established by operators, telecommunications providers, except the universal services. Article 66 of the Law of Ukraine “On telecommunications” Tariff regulation of the telecommunications market of Ukraine is based on the following principles: Tariffs are established based on the cost of relevant services, taking revenues into account. Tariff rates depend on the quality of telecommunication services provided. The establishment of dumping or discriminatory pricing by individual operators and telecommunications providers is forbidden. 4. Avoidance of cross-subsidization of some telecommunication services at the expense of others. 5. Time-based charging of fees for the provision of telecommunication services. Article 67 of the law of Ukraine “On telecommunications” Page 4

2 Description of the Ukrainian telecom market 1/4 Technologies used and roaming services provided by mobile operators of Ukraine Operators  Technology Roaming Services Subscribers (mln.) GSM CDMA UMTS voice SMS data Kyivstar ü 26,1 MTS Ukraine 20,9 lifecell 13,3 Intertelecom 0,4 3Mob 0,1 People.Net 0,01 Page 5

Licensing of mobile telecom operators (31.12.2016) Description of the Ukrainian telecom market 2/4 Licensing of mobile telecom operators (31.12.2016) Operator Comments Year of issuance Frequency ranges Licensing cost 2005 2015 1920-1935, 2 110-2 125 MHz 120 mln. USD Total licenses purchased since registration: 39 Currently valid licenses: 12 1993 1950-1965, 2140-2165 MHz 96 mln. USD Total licenses purchased since registration: 20 Currently valid licenses: 6 1994 1965-1980, 2155-2170 MHz Total licenses purchased since registration: 24 2007 1935—1950 MHz та 2125—2140 MHz 30 mln. USD Total licenses purchased since registration: 1 2006 CDMA 800 - Total licenses purchased since registration: 25 Currently valid licenses: 2 2002 2008 Total licenses purchased since registration: 32 Currently valid licenses: 11 Page 6

Description of the Ukrainian telecom market 3/4 НАЦІОНАЛЬНА КОМІСІЯ, ЩО ЗДІЙСНЮЄ ДЕРЖАВНЕ РЕГУЛЮВАННЯ У СФЕРІ ЗВ’ЯЗКУ ТА ІНФОРМАТИЗАЦІЇ 2 Description of the Ukrainian telecom market 3/4 Telecommunication services revenues structure (bln. UAH). and their revenue share (%) in 2016 Загальний обсяг доходів від надання телекомунікаційних послуг за 2016 рік становив понад 2 млрд Євро, з них 34,1% ( 1,2 млрд Євро) - доходи від мобільного зв’язку: ПрАТ «Київстар» – 28% (0,56 млрд. Євро) ПрАТ «МТС Україна» – 11,2% (0,4 млрд. Євро) ТОВ «lifecell» – 8% (0,17 млрд. Євро) According to the State Statistics Service of Ukraine Page 7

Description of the Ukrainian telecom market 4/4 НАЦІОНАЛЬНА КОМІСІЯ, ЩО ЗДІЙСНЮЄ ДЕРЖАВНЕ РЕГУЛЮВАННЯ У СФЕРІ ЗВ’ЯЗКУ ТА ІНФОРМАТИЗАЦІЇ 2 Description of the Ukrainian telecom market 4/4 Revenues from telecommunication services dynamics for 2006-2016, bln. UAH Загальний обсяг доходів від надання телекомунікаційних послуг за 2016 рік становив понад 2 млрд Євро, з них 34,1% ( 1,2 млрд Євро) According to the State Statistics Service of Ukraine Page 8

Revenues from international roaming in Q3 2015 – Q4 2016 НАЦІОНАЛЬНА КОМІСІЯ, ЩО ЗДІЙСНЮЄ ДЕРЖАВНЕ РЕГУЛЮВАННЯ У СФЕРІ ЗВ’ЯЗКУ ТА ІНФОРМАТИЗАЦІЇ 3 Description of the Ukrainian roaming market 1/8 Revenues from international roaming in Q3 2015 – Q4 2016 51,1% 51,1% ІІІ Q 2015 – 10 118 801 euro IV Q 2015 – 7 684 165 euro I Q 2016 – 7 353 316 euro II Q 2016 – 8 830 692 euro III Q 2016 – 10 506 430 euro IV Q 2016 – 8 731 123 euro 6,5% 6,5% Revenues from international roaming services in Q4 2016 totaled 244.5 mln. UAH., which is 13.5% more than in Q4 2015. Page 9

Description of the Ukrainian roaming market 2/8 3 Description of the Ukrainian roaming market 2/8 International roaming revenue structure in mobile services’ revenues in Q4 2016, mln. UAH. In Q4 2016 revenues from mobile services in Ukraine amounted to 8,7 bln. UAH. (309.8 mln. EUR), including 243.4 mln. UAH (8.7 mln. EUR), revenues from international roaming (“Kyivstar” JSC, “MTS Ukraine” JSC and of “lifecell” LLC data) representing 3% of total revenues from mobile services. Page 10

International roaming revenue shares in Q4 2016, % 3 Description of the Ukrainian roaming market 3/8 International roaming revenue shares in Q4 2016, % Page 11

Volumes of voice traffic in international roaming with the EU, Q4 2016 3 Revenues from voice transmission services in international roaming with the EU, Q4 2016 Volumes of voice traffic in international roaming with the EU, Q4 2016 Page 12

Revenues from transmission of SMS in international roaming from the EU territory, Q4 2016 3 Volumes of SMS transmitted in international roaming from the EU territory, Q4 2016 Page 13

3 Revenues from the transmission of data consumed in international roaming within the EU, Q4 2016 Volumes of data consumed in international roaming within the EU, Q4 2016 Page 14

3 Revenues from voice transmission services in international roaming with the EaP countries, Q4 2016 Belarus Moldova Georgia Azerbaijan Armenia Volumes of voice traffic in international roaming with the EaP countries, Q4 2016 Moldova Belarus Georgia Armenia Azerbaijan Page 15

Revenues from data and SMS transmission in international roaming with the EaP countries, Q4 2016 3 Volumes of data and SMS transmitted in international roaming with the EaP countries, Q4 2016 Belarus Azerbaijan Moldova Georgia Armenia Page 15

Tariff plan “Online Extra” 4 Services Tariff plan “Talks” Tariff plan “Talks+” Tariff plan “Online” Tariff plan “Online+” Tariff plan “Online Extra” Over bundle pricing Calls within Kyivstar network Unlimited 2,00 UAH/day Calls to other networks 0,60 UAH 60 min. free of charge / 0,60 UAH 100 min. free of charge / 0,60 UAH 300 min. free of charge / 0,60 UAH Calls onto landline (fixed) numbers 1,50 UAH Calls abroad Starting at 0,5 UAH* - SMS to local numbers 1,00 UAH/50 SMS 500 SMS SMS to foreign numbers 2,20 UAH МMS to local numbers 1,00 UAH МMS to foreign numbers 5,00 UAH Mobile Internet Access 5,00 UAH/50 Mb 100 Mb 2000 Mb 4000 Mb 6000 Mb Additional services Wikipedia, MyBook, Smart Kyivstar Wikipedia, MyBook, Smart Kyivstar, Facebook, Facebook Messenger, VK.com, OK.ru, Twitter, Viber, WhatsApp Wikipedia, MyBook, Smart Kyivstar, Facebook, Facebook Messenger, VK.com, OK.ru, Twitter, Viber, WhatsApp, Zvooq, Yandex.Music, Deezer и Fonoteka Wikipedia, MyBook, Smart Kyivstar, Facebook, Facebook Messenger, VK.com, OK.ru, Twitter, Viber, WhatsApp, Zvooq, Yandex.Music, Deezer и Fonoteka, Megogo.net, Divan.TV Charged as Mobile Internet Access Cost (per month) 35,00 UAH 55,00 UAH 70,00 UAH 110,00 UAH 175,00 UAH *with “Favorite Countries” service Page 17

Calls within MTS (Vodafone) network Services Vodafone Device Vodafone RED XS Vodafone RED S / M / L S M L XS Calls within MTS (Vodafone) network 50 min/day, over bundle – 0,5 UAH/min 0,50 UAH Unlimited Calls to other networks 60 min, over bundle – 0,25 UAH 75 min, over bundle – 0,25 UAH 105 min, over bundle – 0,25 UAH 300 min, over bundle – 0,25 UAH Calls onto landline (fixed) numbers Calls abroad 10,00 UAH 3,00 UAH 25 min, over bundle – 0,5 UAH 35 min, over bundle – 0,5 UAH 75 min, over bundle – 0,5 UAH SMS to local numbers 50 units/day* 30 units* 50 units, over bundle – 0,5 UAH 70 units, over bundle – 0,5 UAH 150 units, over bundle – 0,5 UAH SMS to foreign numbers МMS to local numbers МMS to foreign numbers Mobile Internet Access 3G – 50 Mb/day 2G – unlimited 5000 Mb 10000 Mb 1000 Mb 4000 Mb 8000 Mb 12000 Mb Additional services -  Facebook, Instagram, Twitter, VK; Viber and WhatsApp (text only)    Facebook, Instagram, Twitter, VK; Viber and WhatsApp (text only); Vodafon TV “Online” Cost (per month) 45,00 UAH 50,00 UAH 90,00 UAH 40,00 UAH 60,00 UAH 180,00 UAH

Tariff plan “3G+ Freedom” Tariff plan “Smartphone 3G+” Services Tariff plan “3G+ Freedom” Tariff plan “Smartphone 3G+” “Calls to All" «Smart Family» PREMIUM PREMIUM EXLUSIVE S M L XS Calls within “lifecell” network 750 min unlimited Calls to other networks 30 min, over bundle – 3 UAH/ 5min 100 min, over bundle – 200 min, over bundle – 350 min, over bundle – 50 min, over bundle – 500 min, over bundle – 1000 min, over bundle – 1500 min 3000 min Calls onto landline (fixed) numbers   Calls abroad  from 5 min / 15 UAH  from 5 min / 15 UAH   from 5 min / 15 UAH from 5 min / 15 UAH 400 min SMS to local numbers 1,00 UAH/50 SMS 30 units, over bundle – 1,0 UAH/SMS 100 units, over bundle – 1,0 UAH/SMS 200 units, over bundle – 1,0 UAH/SMS 350 units, over bundle – 1,0 UAH/SMS 500 units/ 1,0 UAH 1000 units / 1,0 UAH 1500 units / 1,0 UAH 3000 units / 1,0 UAH SMS to foreign numbers 2,70 UAH МMS to local numbers 1,30 UAH МMS to foreign numbers 6,00 UAH Mobile Internet Access 2000 Mb 5000 Mb 10000 Mb 750 Mb 8000 Mb 10 UAH (250 Mb/ 5 days) 6000 Mb 15000 Mb Additional services VK, Facebook, OK.ru, Yandex Maps/ Navigator - Cost (per month) 60,00 UAH 100,00 UAH 175,00 UAH 40,00 UAH 150,00 UAH 135,00 UAH 250,00 UAH 350,00 UAH 400,00 UAH 800,00 UAH Page 19

Thank you for your attention! NATIONAL COMMISSION FOR THE STATE REGULATION OF COMMUNICATIONS AND INFORMATIZATION Thank you for your attention! LILIIA MALON l.malon@nkrzi.gov malonlilia@gmail.com +38 093 77 40 227 Prague 11-12 May 2017