2008 MICRO FLEXIBLE TOP-UP Bridging the Digital Divide

Importance of payment collection  All MNOs are concerned about providing their services to the territory of operation  No one is concerned about collecting the proceeds within the territory of operation

 Upper middle class people are mainly postpaid subscribers  Middle class people use scratch-cards to pay for the mobile communication services  Low-income people ? – Do not have enough money to pay for scratch-cards  Minimal MNO scratch-card face value in Europe is 5 Euros ($7.5) How are the proceeds collected?

Face Value Production Cost Retailer’s Margin Cost of Proceeds Collection from Low-income People 153%5%8% 105%6%11% 510%8%18% 412%10%22% 318%15%33% 225%20%45% 150%30%80% The proceeds are feasible to be collected via scratch-cards only if payments are above 3 €

It is impossible to attract subscribers with ARPU lower than 3 €

 Successful experience of implementing micro- and flexible top-up solutions has demonstrated that 42% of the total subscriber base can be added within the above mentioned category. Thus the subscriber base was increased by 72%, even in Russia which is relatively wealthy. Are there a lot of subscribers with ARPU lower than 3 €? 42% +72% Subscriber base growth in Russia

What about other countries?  The indicators amount to 20% and 25% respectively in the developed countries which as well have low-income groups of population  These indicators amount to 80% and 400% respectively in other developing countries Developed countries Developing countries Subscriber base growth 20% 80% +25%+400%

Is this profitable? Electronic flexible micro top up networks are ready to operate as follows:  For 3% commission (including the retailers’ margins) or 0.5% (excluding the retailers’ margins) — if the turnover is above $1 bln  For 5% commission (including the retailers’ margins) or 2% (excluding the retailers’ margins) — if the turnover is initially small

Contact information Andrey Gribov, PRESIDENT & CEO, CYBERPLAT OJSC Address:Floor 12, Entrance 7, World Trade Center-2, Moscow, , Russia Telephone:+7 (495) Fax:+7 (495) Internet: