1. CPA WAP The Perspectives of WAP Services in Ukraine 22/01/2007

2. WAP services Development in Kyivstar

3. Current usage of WAP sites Creation of Content storage Creation of informational portals to support Company’s image Creation of trade points to sell for Mobile Content

4. Review of WAP Ukrainian market (2) Statistics : Daily trafficSites quantity Approximate Revenue from GPRS traffic % From Total Revenue >1 Gbyte19520 00057 % > 100 Мbyte100240 00026 % > 10 Мbyte44597 00010 % > 1 Мbyte1 67134 0004 % > 100 Кbyte6 99813 0001 % > 10 Кbyte16 1083 0000 % > 1 Кbyte26 0184000 %

5. Review of WAP Ukrainian market (3) TOP 20 WAP sites: 1http://sota.org.ru/Content 2http://wap.amobile.ru/Content 3http://wap.bodr.net/Free of charge Content: Java books, Polyphonic 4http://c100.nsk.ru/Free of charge music (mp3, midi, mmf, amr) 5http://wapfile.ru/Video, mp3 6http://wap.siza.ru/Free of charge melodies and wall-papers 7http://wap.siemens-club.ru/Free of charge Content 8http://wap.1124.ru/Partner’s program 9http://wap.starport.com.ua/Kyivstar portal 10http://telewap.ru/Free of charge melodies, wall-papers, video, books 11http://wap.kotok.ru/Free of charge Content 12http://wap.vipmobila.com.ua/Free of charge Content 13http://wap.wab.ru/Free of charge Content 14http://wap.sota.org.ru/Content 15http://get.didrov.ru/Content 16http://xxx.wap2.ru/Free of charge Content 17http://partner.1124.ru/Partner’s program 18http://st.wapix.ru/Content 19http://wap.funs.ru/Content 20http://nnew.wap2.ru/Free of charge Content: Java book, Polyphonic

6. Review of WAP Ukrainian market (4) This slide shows the average amount of traffic downloaded in one session. Here we can see that in most cases the subscriber downloads only 2-3 Kbytes

7. Reasons holding back WAP development Low profitability for Content Providers Lack of development and low quality of WAP sites Lack of innovative ideas and services in WAP Low WAP penetration among Operators’ subscribers Need for correct WAP settings for mobile phones

8. Subscribers perception of WAP advertising Response Rate upon advertising of SMS services via SMS distributions : 3 – 5 % Response Rate upon advertising of Voice services via SMS distributions : 6 – 8 % Response Rate upon advertising of WAP services via SMS distributions : 12 – 15 % Response Rate upon advertising of WAP services via MMS distributions : 25 – 30 %

9. Kyivstar’s activity for development WAP market of Ukraine CPA WAP – new program of WAP development for Kyivstar Content Providers and Content Aggregators Program oriented mostly for cooperation with Aggregators Revenue for Aggregators: Phase 1: Revenue sharing from WAP Traffic Phase 2: Revenue sharing from sales of Content via WAP Phase 3: Revenue sharing from Premium WAP Traffic

10. Common Conditions of Cooperation Kyivstar’s responsibilityAggregator’s responsibility Technical supportTechnical organization Billing organizationCustomer care support Accordance to Law Advertise support SMS distribution MMS distribution Advertising Activity

11. Revenue Sharing for WAP traffic 50/50 for all off-brand WAP sites 60% (Kyivstar) & 40% (Aggregator) for Kyivstar branded WAP sites (Kyivstar is responsible for advertising) 60% (Kyivstar) & 40% (Aggregator) for internationally hosting WAP sites Minimum Aggregator’s traffic is 5 GB per month

12. Revenue sharing from Sales of Content via WAP How it works : Revenue sharing: 70% (Aggregator) & 30% (Kyivstar) for all types of Content for any price categories Necessity to develop the special technical program to cooperate with Kyivstar (CPA v.2.0. protocol)

13. Example 1. The phone receives a ”teaser” from a news service ordered by subscriber 2. User accepts to access the service by clicking on “continue”. This hyperlink points to the url of the service. Cost of service is UAH 5,- 3. The phone connects to the WAP site of Content Provider 4. The Phone downloads the wap page 5. The user can now view the WAP pages containing premium content, and may choose content of interest - Billing, WAP Push message - 6. He may for example wish to look at the pictures 7. Content provider offers services via CPA WAP.

14. Revenue sharing from Premium WAP Traffic Coming soon….. Ability to download any Content from external WAP sites without MT SMS Ability to set up any tariff per Megabyte for any URL

15. Content Provider opportunities with WAP solutions Creation of free of charge Content Examples: One WAP site with downloadable thematic Content/Logotypes & Melodies with small advertising. Generate more than 20 GB Creation of profitable informative and entertainment portals

16. CPA WAP Forecast

17. Next steps WAP Services are available only on off-portals Cooperation with Kyivstar in CPA project is available only via Content Aggregators: Point Com Jump Inform Mobile i-Free Iricom Mobile Answers

18. Thank you for your attention!