Bridging the West to East April 2010 Dumitru VLAD, GM Commercial Affairs Data Division

1. REGULATORY ENVIRONMENT IN ROMANIA 2. MARKET OVERVIEW 3. ROMTELECOM – the Bridge

Bridging the West to East | April 2010 | Dumitru Vlad2 Page: 2 Regulatory Environment in Romania Market liberalization  Voice interconnection  Carrier selection  Leased Line Termination Segment Unbundle Local Loop (total & shared access) 2004 …… Carrier Preselection  Closing Numbering Plan  Number Portability (ACQ)

Bridging the West to East | April 2010 | Dumitru Vlad3 Page: 3 Fixed Telephony – penetration rate 48 alternative operators 24% fixed penetration Market Overview – Fixed Market Source: ANCOM Survey – July 2009 Operators market share based on access lines no.

Bridging the West to East | April 2010 | Dumitru Vlad4 Mobile Telephony – penetration rate 134% mobile penetration 29 mil mobile users Market Overview – Mobile Market Source: ANCOM Survey – July 2009 Mobile Telephony – The Dynamic of total mobile services users

Bridging the West to East | April 2010 | Dumitru Vlad5 Page: 5 12,32% internet access penetration No. of Internet service providers Market Overview – Internet Market Source: ANCOM Survey – July 2009 Broadband – penetration rate

Bridging the West to East | April 2010 | Dumitru Vlad6 Page: 6 No. of users based on fixed access type 2,65 mil internet connections Internet users type – residential/ business Source: ANCOM Survey – July 2009 Market Overview – Internet Market

Bridging the West to East | April 2010 | Dumitru Vlad7 EU Broadband Internet Connections Source: EU Commission working doc. – July 2009 Market Overview – Internet Market

Bridging the West to East | April 2010 | Dumitru Vlad8 EU Broadband Internet Connections /Penetration Rate Source: EU Commission working doc. – July 2009 Market Overview – Internet Market 12.3% penetration rate below EU27

Bridging the West to East | April 2010 | Dumitru Vlad9 Page: 9 35% PC penetration - the lowest in EU Personal Computers /Penetration rate (100 households) Source: Eurobarometru “E-Communications Household Survey”, p 49 – June Market Overview – Internet Market

Bridging the West to East | April 2010 | Dumitru Vlad10 Page: 10 Despite very low prices & penetration, Romania sits among World Leaders in quality of broadband service Average Internet Connection Speed by Country High Broadband Connectivity, Fastest Countries Source: “State of internet” report for Q published by Akamai Market Overview – Internet Market

Bridging the West to East | April 2010 | Dumitru Vlad11 Page: 11 Complete TELCO Portfolio Voice, Data & Internet Services fix and mobile High Speed Internet Access 2005 Managed MPLS VPN 2005 ClickNET ADSL 2005 DOLCE 2007 CyberHost HDC 2006 First broadband service by Romtelecom Market leader after 4 years Romtelecom’s success story Digital TV High tech CDMA Mobile portfolio 2009 Fix Mobile Convergence 2008 Product of the year ROMTELECOM Portfolio – Retail Products Summary ………… to become a complete telecommunication services provider

Bridging the West to East | April 2010 | Dumitru Vlad12 Page: 12 Romtelecom Portfolio – Wholesale Portfolio Summary VOICE SERVICES TRAFFIC TRANSIT 1 TRAFFIC TERMINATION 2  Access to the Romtelecom network, the most extensive fixed network within Romania  High quality SDH/DWDM transport technology, supporting premium quality PSTN and ISDN services with CLI (Calling Line Identity) guaranteed  Direct access to all mobile operators’ networks within Romania  Highest capabilities to reach other fixed alternative operators within Romania, via direct interconnection with national operators  High quality-of-service for Premium Transit service (over 70 direct international interconnects, a complex Traffic Management System, automatic detection of quality issues and early warning mechanisms)  Over 16,000 international circuits available

Bridging the West to East | April 2010 | Dumitru Vlad13 Page: 13 Romtelecom Portfolio – Wholesale Portfolio Summary DATA SERVICES - Layer 1 services LEASED LINES 2  Suitable for voice services or other data transmissions between customer locations requiring high quality of service level.  100% national coverage using Romtelecom SDH/DWDM network  International coverage through Romtelecom DWDM network and interconnections with foreign operators POP 2 POP 1  Point-to-point, digital, transparent and symmetric connectivity.  Speeds between 2 Mbps and 10 Gbps (Narrowband / Broadband / GigaLink)  Scalable, efficient and flexible solutions WAVELENGTH  National and international connectivity in Romania and across the Balkans  A reliable solutions for high capacity transport requests  Transport capacities of 2.5 Gbps and 10 Gbps 3

Bridging the West to East | April 2010 | Dumitru Vlad14 Page: 14 Romtelecom Portfolio – Wholesale Portfolio Summary CLEAR CHANNEL 1  Point-to-point, permanent and dedicated connectivity for data transfer, with symmetrical bandwidth and end-to-end payload transparency between two sites across Romania  VLAN transparency  PDU transparency (STP/VTP/CDP) Benefits: cost saving (traditional LL) versatility (QoS options, bandwidth range, service customization) Flexibility (CPE package) resilience (STP transparency) competitive SLA (up to 99.99%) Professional helpdesk 365/24/7 DATA SERVICES - Layer 2 services L2 CONNECT 2  cost effective alternatives to connect two sites located beyond their own network, by using Romtelecom international network  VLAN and PDU transparency (STP/CDP/VTP tunnelling)

Bridging the West to East | April 2010 | Dumitru Vlad15 Page: 15 Romtelecom Portfolio – Wholesale Portfolio Summary IP CONNECT 1  provides a mutual exchange of traffic between Romtelecom and ISP’s IP networks, and/or Internet access  IP Transit & Peering  The best routing paths to Romtelecom customers & cost effective solutions for Internet access needs (routing protocol BGPv4) Benefits: Best routes to Internet Service availability up to 99.9% Cost savings by bundling IP services on the same port Scalable, efficient, and flexible solutions of IP traffic management Private connections using optical fiber/in Romtelecom collocation centers Professional helpdesk - 365/24/7 INTERNET BROADBAND 2  premium Internet access service through a separate digital leased line connecting the end user’s location to Romtelecom closest POP.  flat-rate Internet access services at speeds up to 2Mbps INTERNET SERVICES

Bridging the West to East | April 2010 | Dumitru Vlad16 Page: 16 Romtelecom Portfolio – Wholesale Portfolio Summary Two options for peering services Public Peering Virtual Private Interconnection Access to IP networks to be connected in all service access points. Benefits Countrywide coverage Data confidentiality High service reliability & availability Competitive pricing Access to a wide range of telecom wholesale services 24/7 customer support INTERNET EXCHANGE PLATFORM 1

Bridging the West to East | April 2010 | Dumitru Vlad17 Page: 17 Romtelecom Portfolio – Wholesale Portfolio Summary Offers network and service operators a large variety of choices for VPN connectivity (MPLS IP VPN)  VPN Any2Any: allows direct interconnectivity between locations  VPN Hub & Spoke: fits the communication needs of customers requesting for all locations to communicate only with/ via the Headquarter Benefits: Simplified Accounting Flexibility & Transparency High Efficiency & Reliability Security Strong SLAs for QoS INTERNATIONAL MPLS VPN 1

Bridging the West to East | April 2010 | Dumitru Vlad18 Page: 18 ROMTELECOM International Network

Bridging the West to East | April 2010 | Dumitru Vlad19 Page: 19  A wide range of data services, Internet, voice termination and transit  Extensive national network, with one of the most modern backbone in Eastern Europe  Gateway to Frankfurt of 520 GB over 3 redundant routes  A main player for easy access to Internet all across the region, provided at competitive prices, best quality and close to customers Points of Presence  An active partner for regional peerings  Professional carrier-grade help desk services available 365/24/7 ROMTELECOM – the Bridge

Bridging the West to East | April 2010 | Dumitru Vlad20 Q & A Thank you! Phone: Web: Palatul Telefoanelor, Victoriei St., 6 th floor, st district, Bucharest, Romania