1. Digital Content & IP Transit Growth Caspian Telecoms, Istanbul, Turkey, 24 th April 2014 Konstantin Novikov Wholesale, CIS countries

2. Eurasia Highway 2 GLOBAL LOCATION OF DIGITAL CONTENT  Total datacenter space has reached 31 million sq.m.  Over 7 million of them is available for commercial lease  Most of digital content is located in USA and Europe  Caspian region will require a good IP connectivity to Europe Source: DCD Intelligence Total Datacenter Space, mln sq m Worldwide Datacenter Distribution Source: www.datacentermap.com

3. Eurasia Highway 3 IP TRAFFIC DRIVERS IN CENTRAL & EASTERN EUROPE  For past five years IP grew 4.6 times in Central & Eastern Europe  Private customers consume over 80% of total IP traffic  Mobile data grow fast, but it is still on enfant stage in traffic volume  Video is the contributor №1 in traffic volume Source: Cisco, 2012

4. Eurasia Highway 4 BROADBAND SERVICES IN CIS COUNTRIES  Total number of broadband users has reached over 33 million in CIS countries & Georgia  Major markets: Russia, Ukraine, Belorussia, Kazakhstan and Azerbaijan  Economy strength has a strong influence on broadband penetration (by population) Source: J’son & Partners Consulting BB Users in the Region, thousand Source: ITU BB Penetration vrs. GDP per Capita

5. Eurasia Highway 5 WIKI AS A MIRROR OF GLOBAL CONTENT LOCATION Russia is among major “sources” of digital content in the Internet Average number of references in all languages in Wikipedia Source: New Scientist, April 2013

6. Eurasia Highway 6 BROADBAND SERVICES IN RUSSIA Source: IKS Consulting  Penetration of broadband services will reach ~58% of total households that is closed to top limit  While number of broadband subscribers is going to saturation, a “heavy” video supports total traffic growth  As a result telecom carriers have to transit more and more IP traffic 20092010201120122013 High-Definition Video1113141618 Standard-Definition Video66778 Short-Form Video33345 Russia: MB per Minute for Internet Video Source: Cisco

7. Eurasia Highway 7  IP transit demand is fast growing segment, CAGR 80% in 2009 - 2013  Russia generates 65% of total international IP uplinks in CIS  ~ 50% of CIS countries uplinks (excluding Russia) go through Russia  Commercial datacenter space exceeds 100 thousand sq m in Russia IP TRANSIT VIA RUSSIA Source: TeleGeography Datacenter Space Distribution in Russia Source: J’son & Partners Consulting

8. Eurasia Highway 8 TTK AT GLANCE Largest Fiber-Optic Backbone in Russia  length — 75 000 km  transmission capacity — up to 3200 Gbps  over 1000 access nodes in 78 Russian regions  20 cross-border interconnections  telecom bridge between Europe & Asia Comprehensive Telecom Solutions  layout of enterprise networks based on advanced technologies  full spectrum of fixed voice services  network security & monitoring  building of telecom infrastructure  wholesale services Guaranteed Quality  certified services  information security  SLA Own Access Infrastructure  local access networks in more than 180 Russian cities  international gateways in London, Frankfurt, Amsterdam, Stockholm, Hong Kong, Tokyo

9. Eurasia Highway 9 MARKET POSITIONS Market Share in the Russian Market Source: Direct Info, 2013 Enterprise Networks Europe – Asia Transit (via Russia) Telecom Carrier Non-Voice Services Enterprise Long-Distance Voice Services TTK is fifth largest telecom operator in Russia - CNews Analytics 2013

10. Eurasia Highway TTK BACKBONE 10  Transmission Capacity (ULH DWDM) — up to 9 Tbps  Multiple ring topology & high service availability – up to 0.9995  Automatic restoration switch for redundant services < 55 ms  Service restoration time < 4 hours  Maintenance team - every 200 km  22 international gateways: Finland, Estonia, Lithuania, Latvia, Poland, Belarus, Ukraine, Azerbaijan, Kazakhstan, Mongolia, China, North Korea, Japan  International nodes: London, Stockholm, Amsterdam, Frankfurt, Hong Kong, Tokyo Eurasia Highway

11. 11  Today TTK offers both IP transit and clear channels from the Russian border to major European destinations:  London  Amsterdam  Frankfurt  Stockholm  Hong Kong  Tokyo  Capacity – up to 10GE or 10G  Total transit TTK capabilities are exceeded 4 Tbps in Central Russia due to implementation of 10&40G&100G DWDM systems and development 10GE IP MPLS > 4 Tbps TTK CAPABILITIES

12. 8 Testovskaya St., Moscow, RUSSIA tel.: +7 (495) 784-66-70 fax: +7 (495) 784-66-71 www.ttk.ru email: k.novikov@ttk.ru Eurasia Highway 12 Thank you for attention!