Summary Operating DataThe following summary operating data <strong>as</strong> of September 30, 2010 and <strong>as</strong> of December 31, 2009, 2008 and2007 h<strong>as</strong> been derived from internal company sources and from independent sources <strong>that</strong> we believe to be reliable.The summary operating data set f<strong>or</strong>th <strong>below</strong> should be read in conjunction with VimpelCom’s consolidatedfinancial statements and their related notes included elsewhere in this prospectus and the section of this prospectusentitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Our subscriberdata, ARPU and MOU f<strong>or</strong> all periods indicated in the table <strong>below</strong> and churn figures f<strong>or</strong> the years 2008 and 2009 andthe first nine months of 2010 in the table <strong>below</strong> <strong>are</strong> rep<strong>or</strong>ted on the b<strong>as</strong>is of active subscribers.As ofSeptember 30, As of December 31,2010 2009 2008 2007Selected industry operating data:Estimated population: (1)Russia ..................... 140,126,000 140,681,500 142,008,800 142,008,800Kazakhstan .................. 15,786,000 15,704,000 15,571,500 15,571,500Ukraine .................... 45,082,750 45,813,764 46,192,300 46,192,300Tajikistan ................... 7,094,000 7,011,000 7,215,700 7,215,700Uzbekistan .................. 28,683,250 28,381,000 27,100,000 27,100,000Armenia .................... 2,986,250 2,990,000 3,230,100 3,230,100Ge<strong>or</strong>gia .................... 4,295,250 4,318,000 4,500,000 4,500,000Kyrgyzstan .................. 5,511,250 – – –Cambodia ................... 15,294,750 15,097,000 – –Estimated mobile subscribers: (2)Russia ..................... 217,908,480 209,206,000 187,830,000 172,870,000Kazakhstan .................. 16,590,600 16,581,000 14,437,927 12,692,511Ukraine .................... 50,587,800 55,251,400 55,793,102 55,596,318Tajikistan ................... 5,214,090 4,334,900 3,428,061 2,131,103Uzbekistan .................. 19,074,750 16,569,900 12,276,098 5,931,796Armenia .................... 3,077,000 2,616,700 2,561,280 1,868,571Ge<strong>or</strong>gia .................... 4,168,100 3,894,800 3,757,055 2,690,405Kyrgyzstan .................. 4,703,900 – – –Cambodia ................... 8,161,670 5,477,100 – –Mobile penetration rate: (3)Russia ..................... 155.5% 148.7% 132.3% 121.7%Kazakhstan .................. 105.1% 105.6% 92.7% 81.5%Ukraine .................... 112.2% 120.6% 120.8% 120.4%Tajikistan ................... 73.5% 61.8% 47.5% 29.5%Uzbekistan .................. 66.5% 58.4% 45.3% 21.9%Armenia .................... 103.0% 87.5% 79.3% 57.8%Ge<strong>or</strong>gia .................... 97.0% 90.2% 83.5% 59.8%Kyrgyzstan .................. 85.4% – – –Cambodia ................... 53.4% 36.3% – –Selected company operating data:End of period mobile subscribers:Russia ..................... 51,614,769 50,886,127 47,676,844 42,221,252Kazakhstan .................. 6,736,121 6,135,275 6,269,927 4,603,300Ukraine .................... 2,471,802 2,004,729 2,052,493 1,941,251Tajikistan ................... 772,119 743,140 624,624 339,393Uzbekistan .................. 4,398,048 3,514,516 3,636,243 2,119,612Armenia .................... 580,916 545,201 544,271 442,484Ge<strong>or</strong>gia .................... 529,299 399,161 225,055 72,655Kyrgyzstan .................. 1,765,630 – – –Cambodia ................... 505,067 367,474 – –Total mobile subscribers ...... 69,373,771 64,595,623 61,029,457 51,739,94713
As ofSeptember 30, As of December 31,2010 2009 2008 2007MOU (4)Russia ..................... 215.2 211.4 219.1 192.1Kazakhstan .................. 119.5 93.1 104.3 94.6Ukraine .................... 191.4 208.7 231.8 163.2Tajikistan ................... 172.1 172.9 238.9 220.6Uzbekistan .................. 380.6 314.0 287.8 274.0Armenia .................... 300.6 237.8 152.1 169.9Ge<strong>or</strong>gia .................... 138.3 138.3 113.6 102.5Kyrgyzstan .................. 238.8 – – –Cambodia ................... 305.1 78.2 – –ARPU (5)Russia ..................... US$ 10.8 US$ 10.1 US$ 13.9 US$ 12.6Kazakhstan .................. US$ 9.2 US$ 8.1 US$ 11.7 US$ 13.1Ukraine .................... US$ 4.4 US$ 4.7 US$ 7.6 US$ 4.7Tajikistan ................... US$ 6.2 US$ 7.1 US$ 9.5 US$ 9.7Uzbekistan .................. US$ 4.1 US$ 4.7 US$ 6.4 US$ 7.1Armenia .................... US$ 10.4 US$ 13.2 US$ 14.6 US$ 16.7Ge<strong>or</strong>gia .................... US$ 8.1 US$ 8.9 US$ 9.0 US$ 7.4Kyrgyzstan .................. US$ 5.2 – – –Cambodia ................... US$ 3.4 US$ 1.4 – –Churn rate (6)Russia ..................... 35.6% 42.8% 34.6% 32.9%Kazakhstan .................. 29.1% 46.3% 31.5% 23.5%Ukraine .................... 51.1% 81.0% 84.0% 61.8%Tajikistan ................... 59.3% 52.9% 42.8% 4.6%Uzbekistan .................. 30.0% 63.7% 55.6% 61.7%Armenia .................... 46.1% 58.6% 106.2% 49.7%Ge<strong>or</strong>gia .................... 34.6% 46.6% 47.2% 1.0%Kyrgyzstan .................. 49.9% – – –Cambodia ................... 132.8% n/a – –Number of GSM b<strong>as</strong>e stations (7) :Russia ..................... 31,177 28,718 26,633 22,088Kazakhstan .................. 3,272 3,191 3,119 2,291Ukraine .................... 3,020 3,039 3,015 2,294Tajikistan ................... 604 523 494 326Uzbekistan .................. 1,773 1,625 1,573 928Armenia .................... 670 518 503 379Ge<strong>or</strong>gia .................... 707 609 514 215Kyrgyzstan .................. 853 – – –Cambodia ................... 867 552 – –End of period broadbandsubscribers (8) :Russia ..................... 2,757,306 2,110,881 1,181,916 –Ukraine .................... 213,750 109,345 24,147 –Kazakhstan .................. 6,191 1,342 154 –Uzbekistan .................. 23,258 9,029 5,766 –Armenia .................... 65,199 26,196 9,234 –Total broadband subscribers .... 3,065,704 2,256,793 1,221,217 –(1) Estimated population statistics f<strong>or</strong> the first nine months of 2010 were provided by Inf<strong>or</strong>ma Telecoms & Media (·2011 Inf<strong>or</strong>maTelecoms & Media). Estimated population statistics f<strong>or</strong> the year 2009 were provided by Inf<strong>or</strong>ma Telecoms & Media (·2010 Inf<strong>or</strong>maTelecoms & Media),except f<strong>or</strong> the statistics on Ukraine, which were provided by AC&M. Estimated population statistics f<strong>or</strong> the years2007 and 2008 f<strong>or</strong> all countries were published by the Interstate Statistical Committee of the CIS. F<strong>or</strong> the years 2005 and 2006, estimatedpopulation statistics f<strong>or</strong> Russia were published by the Federal State Statistics Service (Goskomstat) of Russia; estimated population14
- Page 4 and 5: IMPORTANT INFORMATION ABOUT THE OFF
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the VimpelCom Ltd. group, our manag
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shareholders, at or after the closi
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Russia. In the first nine months of
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Kazakhstan. In the first nine month
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floating interest rate, the interes
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Ukraine MobileNine months endedSept
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from competitors. In functional cur
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US$4.9 million in the first nine mo
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Operating IncomeOur consolidated op
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than offset increased traffic to ou
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espectively. The decrease of 19.2%
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provision for doubtful accounts inc
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During 2008, we generated US$170.4
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Provision for doubtful accounts. Ou
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was mainly due to the increase in o
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BorrowerType of debt/lenderInterest
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interest in GTEL-Mobile in consider
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Our management anticipates that the
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Foreign Currency TranslationOur una
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Quantitative and Qualitative Disclo
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OUR COMPANYOverviewWe are a telecom
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In July 2008, we acquired a 90.0% s
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shareholders and ADS holders as of
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Principal Terms of our Territorial
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License Type Region Expiration Date
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(11) These licenses are held by Uni
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k Data Services. We believe data se
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The Russian mobile telecommunicatio
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The following table shows our and o
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Magticom. According to Informa Tele
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Consumer Internet ServicesRussia. O
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host operator for the roaming servi
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Fixed mobile convergence. Based on
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Dedicated Internet and Data Service
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network. Tacom also has a license t
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11.2% comprised key/national accoun
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GeorgiaIn Georgia, Mobitel offers f
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VimpelCom pays commissions to deale
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Dial-up Internet Access. Currently,
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fiber ring of our network connects
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administrative and sales office. We
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RUR7 million in fines and penalties
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For the risks related to matters in
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General Regulatory EnvironmentREGUL
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Licensing to Provide Telecommunicat
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(2) Russian system and plan of numb
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kkkkdetermining the list of radio-e
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Regulation of Telecommunications in
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eturn, the Regulator takes into con
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The Agency may refuse to issue a li
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Ministry also has the authority to
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Regulation of Telecommunications in
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According to the Kyrgyzstan Communi
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The MEF is the Government agency re
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MANAGEMENTA. Directors and Senior M
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company Samsung Electronics and at
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In connection with the completion o
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E. Share OwnershipStock Option Plan
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on Schedule 13D, filed on April 30,
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Agreements with TelenorSince Septem
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TERMS AND CONDITIONS OF THE NOTESTh
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obligation to exercise in favour of
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compliance with restrictions on tra
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The Issuer shall deliver to the Tru
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Notwithstanding the foregoing provi
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(b)Modification and waiver: The Tru
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SUMMARY OF PROVISIONS OF THE NOTES
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FORM OF THE A LOAN AGREEMENTTHIS AG
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international accounting standards
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(B)the amount of such Indebtedness;
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(11) pledge of Capital Stock of the
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“Subordinated Indebtedness” mea
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and shall include, 2 February 2011
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after such withholding or deduction
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(i) entering into this Agreement an
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10.2 Increased Costs ClaimsIf the L
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11.6 Payment in U.S. DollarsAll pay
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11.16 No Withholding or Similar Tax
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(i) VimpelCom Ltd.’s initial audi
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15. EVENTS OF DEFAULT15.1 Circumsta
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16. DEFAULT INTEREST AND INDEMNITY1
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supporting documents evidencing the
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agreements entered into in connecti
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26. LAW AND JURISDICTION26.1 Englis
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FORM OF THE B LOAN AGREEMENTThe for
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Financial StatementsThe financial y
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A non-resident Noteholder generally
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Application of tax benefits under t
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course of its business are exempt f
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Characterization of the NotesWe bel
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CERTAIN ERISA CONSIDERATIONSNo pens
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Registrar or any Agent of a written
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SUCH SIMILAR LAW AND (3) IT WILL NO
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Note Certificate for all purposes u
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kthe “Disclaimer” pages for the
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SUBSCRIPTION AND SALEThe managers n
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The Russian FederationEach of the L
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7. No consents, approvals, authoriz
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“EDGE”—Enhanced Data Rates fo
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INDEX TO FINANCIAL STATEMENTSOPEN J
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OPEN JOINT STOCK COMPANY “VIMPEL-
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of the change to its contractual ar
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informational purposes only and do
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INDEX TO FINANCIAL STATEMENTSOPEN J
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consolidated balance sheet at fair
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subscribers (subscribers in the reg
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OPEN JOINT STOCK COMPANY “VIMPEL-
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The following table represents Vimp
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8. Property and EquipmentOPEN JOINT
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formula; however in no event could
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issued, the Company has a call opti
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10,000 phantom ADSs granted to the
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Year ended December 31, 2007:OPEN J
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entire territory of Ukraine (except
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OPEN JOINT STOCK COMPANY “VIMPEL-
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VimpelCom Ltd.On April 21, 2010, Vi
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