| Caspian Telecoms 2010 Conference April 29th, 2010 TI Sparkle overview Leading global service provider, offering Voice, IP and Data solutions for fixedline 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 Operational KPIs (2) EOY ‘09 EOY ‘09 Headcount • TI Sparkle 878 • Subsidiaries (1) 257 Main offices abroad 31 Voice traffic IP/Data 19 Bn/Mins 2 Tbps Network coverage • # Cities 49 • # PoPs (incl. Telehouses) 121 Virtual PoPs through partners (1) excluding Elettra MNCs 3,300 Circuits > 1,000 (2) TI Sparkle only 2 TI Sparkle Service Portfolio Offer Voice, IP and Data solutions for Fixed and Mobile Operators, ISPs and Multinational Corporations Global Termination Global IP connectivity Global Signalling Managed Bandwidth Wholesale VoIP Managed Bandwidth GRX IP-VPN Voice Outsourcing Ethernet over SDH /MPLS IPX Carrier-grade IP-MPLS Prepaid Services Internet security platform MMS & SMS Hubbing VoIP International & Universal Toll Free Services Restoration and protected solutions Roaming Hub Internet access Outbound Roaming Solution (Dual IMSI) Mobility solutions SMS Transit Full Outsourcing ISDN Transit Services IPX Solutions Content Delivery Network Video Solutions Content Delivery Solutions TI Sparkle Positioning Top WW Voice Carriers IP Backbone Ranking 2008 Bn Mins Verizon iBasis TATA DT 1,6 5,5 FT 4,7 Sprint BT IP&DATA 2 Sprint 3 Global Crossing 4 Savvis 5 Telianet 17.0 6 Verizon 1,6 16.3 7 Tata Communications 11 …. …. 11 TI Sparkle 28.0 26,4 23.1 14,4 21.1 15,5 13,9 12,4 14,7 3,7 7,8 4,7 Source: Telegeography 2010 VOICE Level 3 30.7 14,9 8,7 TI 5,2 BICS 1 15,8 19.1 14.7 12.5 Open market Home market Source: Renesys, April 2010 #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) MOBILE Among the few global players active today within the wholesale mobile market MNCs #1 in Italy, challenger in Europe and emerging player on the global market TI Sparkle answers to Mobile Operators needs in Eastern Europe Among Eastern European Countries, Turkey, Russia, CIS and Caspian, represent strategic target for TI Sparkle in terms of development for voice, data and mobile business 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 5 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 Global Signaling, ITU/Ansi, GRX, IPX and 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. 6 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 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 Preferred Partner ( Wholesale Aggregation Voice Expertise), is the best solution for managing Int’l Traffic, granting KPI and SLA performances based on pre-established objectives 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. 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 Wholesale Enabler W.A.V.E. ADVANTAGES FOR CUSTOMERS SP 1 Customer SP 2 TIS SP 3 Direct interconnection (virtual 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 dedicated links for each one of them 7 TI Sparkle Balkans Backbone as Alternative Route to Europe A new Backbone into Turkey: Bratislava Wien Budapest Bucharest 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 Istanbul Athens 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. 9