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Caspian Telecoms 2010 Conference

April 29 th , 2010

TI Sparkle overview

 Leading global service provider, offering Voice, IP and Data solutions for fixed line and mobile operators, ISPs and multinational corporations (MNCs)  Wholly owned subsidiary of Telecom Italia created in 2003 with the objective of developing the international wholesale and MNCs business and of supporting TI Group business units for the provisioning of international Services Company Data

EOY ‘09

Headcount • TI Sparkle • Subsidiaries (1) Main offices abroad Network coverage • # Cities • # PoPs (incl. Telehouses) Virtual PoPs through partners

(1) excluding Elettra

878 257 31 49 121 > 1,000 Operational KPIs (2)

EOY ‘09

Voice traffic 19 Bn/Mins IP/Data MNCs

(2) TI Sparkle only

2 Tbps 3,300 Circuits

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TI Sparkle Service Portfolio Offer

Voice, IP and Data solutions for Fixed and Mobile Operators, ISPs and Multinational Corporations  Global Termination  Wholesale VoIP  Voice Outsourcing  Prepaid Services  International & Universal Toll Free Services  ISDN Transit Services  IPX Solutions  Global IP connectivity  Managed Bandwidth  Ethernet over SDH /MPLS  Internet security platform  Restoration and protected solutions  Content Delivery Network  Global Signalling  GRX  IPX  MMS & SMS Hubbing  Roaming Hub  Outbound Roaming Solution (Dual IMSI)  SMS Transit  Managed Bandwidth  IP-VPN  Carrier-grade IP-MPLS  VoIP  Internet access  Mobility solutions  Video Solutions  Full Outsourcing  Content Delivery Solutions

TI Sparkle Positioning

Top WW Voice Carriers

2008 Bn Mins

Verizon iBasis TATA 1,6 15,8 8,7 26,4 14,4 14,9 30.7

28.0

23.1

DT TI FT BICS Sprint BT 5,5 5,2 4,7 1,6 15,5 13,9 12,4 14,7 21.1

19.1

17.0

16.3

11 3,7 14.7

7,8 4,7 12.5

Source: Telegeography 2010

Open market Home market IP Backbone Ranking 6 7 ….

1 2 3 4 5 11

Source: Renesys, April 2010

Level 3 Sprint Global Crossing Savvis Telianet Verizon Tata Communications ….

TI Sparkle VOICE IP&DATA MOBILE MNCs #5 for worldwide traffic collected on an international wholesale basis (

Telegeography

)  “Seabone”, TI Sparkle IP Backbone, ranked #1 in the Mediterranean, #3 in Europe, #11 worldwide (

Renesys

)  Italy, through TI Sparkle nodes in Sicily, is recognized as the top internet hub for Africa

(Telegeography)

Among the few global players active today within the wholesale mobile market #1 in Italy, challenger in Europe and emerging player on the global market

 TI

Sparkle answers to Mobile Operators needs in Eastern Europe

Among business Eastern European Countries, Turkey, Russia, CIS and Caspian, represent strategic target for TI Sparkle in terms of development for voice, data and mobile  Traffic increase and number of emerging mobile operators in the region confirm the high potential for wholesale business  TI Sparkle is the leading Partner for voice, signaling , roaming and hubbing services, thanks to:          More than 500 direct voice I/C (+80 with MNOs : 40 in Europe mainly concentrated in EE More than 570 GSM Roaming Agreements More than 100 3G Roaming Agreements More than 210 CAMEL Roaming Agreements More than 310 GPRS Roaming Agreements More than 800 SMS Hub Destinations, More than 300 MMS Hub destinations, Signalling connectivity to +800 MNOs GRX connectivity to +400 MNOs

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TI Sparkle mobile data portfolio

TIS fits MNOs connectivity needs by supporting the always growing requirements in terms of speed, capacity, security and QoS through and Global Signaling, ITU/Ansi, GRX, IPX provides access to a multiplicity of outsourced services such as Traffic Steering, VHE, Dual IMSI, SMS/MMS and Roaming Hub (GPRS, CAMEL, UMTS) helping existing MNOs to extend and enhance their coverage and new MNOs in instantly gaining access to a broad community of MNOs without the pain and cost of setting up and manage bilateral relationships.

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TI

Sparkle answers to Operators needs in Outsourcing Services

   Specifically designed for small incumbents, OLO’s, MNO, MVNO, ISP, CATV, satellite bandwidth providers TI Sparkle Outsourcing Products, called W.A.V.E

( Wholesale Aggregation Voice Expertise), is the best solution for managing Int’l Traffic, granting KPI and SLA performances based on pre-established objectives W.A.V.E. provides the end-to-end management of our customers international wholesale voice traffic.

W.A.V.E. gives to the customer the possibility to redirect non core wholesale business reducing the global cost and focus on its core business Outsourcing Solutions & Interconnection Models Retail Customers VO customer TIS Single interconnection between TIS and VO Customer: VO Customer will collect voice traffic from its retail customers and send it on a direct and undistinguished link to TIS.

W.A.V.E. ADVANTAGES FOR CUSTOMERS  OPEX and CAPEX Reduction  Savings on settlement and admin activities  Saving on routing and technical activities  Price Stability  Access to skill and methodologies  Time to Market SP 1 Customer SP 2 TIS SP 3 Direct interconnection (virtual dedicated links for each one of them or phisical) between TIS and each Service Provider of VO customers : VO Customer will collect wholesale voice traffic from SP and send it to TIS on

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TI

Sparkle Balkans Backbone as Alternative Route to Europe

 A new Backbone into Turkey:

Wien Bratislava Budapest Bucharest Athens Istanbul

   Terrestrial route (through Bucarest) operational since Dec ’09 Submarine link to Italy under completion (RFS Q3 ’10) Alternative and diverse physical routing for improved resilience and performance  Seabone, TIS Top tier IP Transit service is NOW available in Istanbul and in Bucharest, through its global 1.5 Tbps IP backbone  In Sicily are hosted the most popular Internet content > reduced latency for a better eyeball Internet experience

About MedNautilus

 Sparkle operates in Turkey through Mediterranean Nautilus (MedNautilus), its wholly-owned subsidiary, which runs a unique, ring-based topology submarine cable system in the Mediterranean Basin.

 MedNautilus has constructed a 2000 m2 Telehouse and Data Center , with the highest availability, capacity, and security standards to match the requirements of most demanding Data Center applications.

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