(1) qibs that are qps (each as defined below) or (2

Strategygives us a strong competitive advantage among all Russian operators. M2M Control Center allows on-lineself-management of a business client’s SIM cards, giving the client control and monitoring capabilities ofits SIM cards via a web-based interface. For example, business customers with M2M Control Centre canreceive real-time monitoring, usage statistics, on-line diagnostics, and on-line notifications on SIM cardactivities from SIM cards used with the customers’ remote equipment. We believe M2M Control Centercan be easily integrated with our business customers’ other systems and platforms through an openapplication programming interface, or open API.• Specialized customer care. We provide specialized customer service to our different subscribersegments. We believe that our ability to provide specialized customer service has helped us maintain ahigh level of subscriber satisfaction with our products and services and control churn. We also believethat VimpelCom has provided particularly strong customer service to its corporate subscribers. Wehave learned lessons and applied best practices to both corporate and mass market customers and nowoffer all customers a common approach to customer care.• Broad distribution network. We have one of the largest distribution networks for mobile services inRussia with approximately 2,560 independent dealers. In addition, we have approximately4,000 branded kiosks (branded stands) and 12,360 non-specialized independent retail outlets whereBeeline contracts may be purchased. In total, we have more than 39,500 points of sale in Russia. We alsohave approximately 57,300 locations in Russia where prepaid scratch cards are sold and 238,000 pointswhere cash is collected. We are also rapidly expanding our distribution in the CIS and already haveapproximately 44,730 points of sales throughout the CIS countries. In October 2008, we acquired 49.9%of Euroset Group, or Euroset, with put and call arrangements for 25.0% of additional shares exercisablein three years. As of September 30, 2010, Euroset operates approximately 3,770 outlets in Russia, andwe believe this acquisition has allowed us to significantly enhance our distribution capabilities.Additionally, we are also rapidly developing our distribution in Cambodia with approximately1,119 independent dealers, and already have approximately 5,754 points of sales and 12,181locations where prepaid scratch cards are sold throughout the country.• Unified, sophisticated mobile network. We are able to provide uniform mobile products and servicesthat we develop and launch on an international rather than local basis due to our centralized ITplatform which operates throughout our unified mobile network system covering our license areas inRussia and the CIS. We believe that our level of centralization and standardization is unique in thelicense areas where we operate and that this gives us a competitive advantage and efficiency indeveloping and rolling out new services. We build our mobile networks with advanced technologyfrom the world’s leading mobile telecommunications equipment suppliers, such as Alcatel-Lucent,Ericsson, Nokia-Siemens Networks, and Huawei in order to provide our subscribers with high-quality,dependable networks capable of offering enhanced value added services and features. We launchedour 3G network in 2008 and plan to follow the same principles of centralization that we have appliedto our 2G network and building on a philosophy of a convergent 2G/3G core.• Extensive fixed infrastructure. Through the combination of VimpelCom’s and Golden Telecom’sfixed assets, including both long distance fiber lines and city rings, we have what we believe is one ofthe best high-speed fixed asset bases in Russia, which enables us to efficiently carry our own trafficand to offer data communications capacity on a wholesale basis. In addition, we believe our networkcapacity allows us to deliver a broader range of products at a higher speed.We are a part of the VimpelCom Ltd. group and we share the strategy of our parent company, VimpelComLtd. Our group strives to create shareholder value by focusing on three core priorities: driving value capture in themature voice business in core markets, emerging as a leader from the transition to a data-centric world andselectively building scale. Within each of these broad priorities our group pursues specific objectives:• Drive value capture in the mature voice business in core markets.• We recognize that our industry, in our core markets as well as internationally, is one where theprices of the traditional products and services that we provide are generally falling over time,despite price elasticity being significantly below one, whereas many of the costs of delivering7