Cellular Data 2014

Russia:

- Number of subscribers (active SIM cards) increased to 240.3 mln, up 0.9 mln from 3Q2014, down 2.5 mln from 4Q2013;

- Penetration increased to 168% (up 0.7% from 3Q2014, down 1.7% from 4Q2013);

- There were 215 and 217 SIM cards in use per 100 population in Moscow and St. Petersburg respectively as of December 31, 2014.

Ukraine:

- Number of subscribers (active SIM cards) decreased to 59.4 mln, down 3 mln from 3Q2014, down 1 mln from 4Q2013

- Penetration decreased to 131% (down 6.5% from 3Q2014, down 2.4% from 4Q2013).

Dear Colleagues!

Please find attached our cellular estimates for 3Q2014.

Russia:

- Number of subscribers (active SIM cards) increased to 239.4 mln, up 2.9 mln from 2Q2014, down 0.2 mln from 3Q2013;

- Penetration increased to 168% (up 2% from 2Q2014, down 0.1% from 3Q2013);

- There were 212 and 216 SIM cards in use per 100 population in Moscow and St. Petersburg respectively as of September 30, 2014.

Ukraine:

- Number of subscribers (active SIM cards) increased to 62.3 mln, up 2.5 mln from 2Q2014, up 1.6 mln from 3Q2013

- Penetration increased to 137% (up 5% from 2Q2014, up 4% from 3Q2013).

Please note that MTS have changed their subscriber accounting policy: subscriber stops being active after 3 months of inactivity vs 6 months previously. That is reflected in both 2Q and 3Q numbers as well as resulted in overall Russia and Ukraine subscriber contraction in 2Q2014 from what we had previously reported.

Should you have any questions please do not hesitate to contact us on the phone numbers below or via Email.

Best regards,

Anton Pogrebinsky

_______________________________

Advanced Communications & Media

11/2a Armyansky Pereulok

Moscow 101990, Russia

Tel: (+7-495) 623-5480; 933-5578

Email: ap@acm-consulting.com

www.acm-consulting.com

Russia:

- Number of subscribers (active SIM cards) increased to 243.1 mln, up 1.6 mln from 1Q2014, up 8.99 mln from 2Q2013;

- Penetration increased to 170% (up 1% from 1Q2014, up 6% from 2Q2013);

- There were 220 and 218 SIM cards in use per 100 population in Moscow and St. Petersburg respectively as of June 30, 2014.

Ukraine:

- Number of subscribers (active SIM cards) increased to 60.6 mln, up 0.2 mln from 1Q2014, up 1.8 mln from 2Q2013

- Penetration increased to 133.4% (up 0.5% from 1Q2014, up 4% from 2Q2013).

Russia:

- Number of subscribers (active SIM cards) decreased to 241.5 mln, down 1.3 mln from 4Q2013, up 11.1 mln from 1Q2013;

- Penetration decreased to 169% (down 1% from 4Q2013, up 8% from 1Q2013);

- There were 216 and 214 SIM cards in use per 100 population in Moscow and St. Petersburg respectively as of March 31, 2014.

Ukraine:

- Number of subscribers (active SIM cards) decreased to 60.4 mln, down 0.04 mln from 4Q2013, up 0.5 mln from 1Q2013

- Penetration decreased to 133% (down 0.1% from 4Q2013, up 1.5% from 1Q2013).