Facts and figures:

By early 2011, 35 billion different devices were connected to the Internet - almost 6 devices per person on the planet.

Strategy Mikhail Dubin, Deputy General Director for Strategic Development:

To build our own marketing strategy, "MegaFon" could rely only on itself because cellular communication was only at the very beginning of development in Russia, and foreign experience was often inapplicable in our environment. But I am sure that in retrospect, it turned out for the better. We did not copy anyone's path and we did not reproduce other’s mistakes. We did not have a tunnel vision of our future. So everything that "MegaFon" has accomplished is a result of our own hard work.

In every sphere of human activity, а choice of your own path that no one else has traveled, if planned properly, guarantees both success and the route to the finish line ahead of your competition by a wide margin. The brightest success stories of global corporations or scientific discoveries, as well as biographies of great leaders are convincing evidence of this premise. The "MegaFon" strategy has always been a choice of our own path to success. "MegaFon" has consistently shown loyalty to this approach at all stages of its development and growth from its early foundation to the present day. This is how the company reached the leading position in the national mobile communications market. "MegaFon" was the only major market player who staked its future on organic growth through the development of its own subsidiaries in the regions, while others pursued a strategy of merging or acquiring local players. As a result of our choice, we were able to address the issue of forming a unified management and corporate culture from the very beginning. Аnd this provided unity of purpose and approach, and a strong team spirit among all our "children." Later, by joining and aligning regional companies with the head office, we were able to effectively address a number of essential issues including cost cutting, the standardization of corporate and technological development and the introduction of new technologies and human resource management. These factors allowed us to retain the existing management model and the balance of powers between the center and the regions. The branches and regional offices of "MegaFon" have actually retained their sense of independence in the united company, and due to this mentality, they have retained a high degree of initiative in their development. We confidantly believe this business model is one of our competitive advantages. Konstantin Yunov, Director of Information Technology: “The leaders of the company that determine the path of its development, are regularly faced with difficult choices: where to turn, what technology to bet on, and which market forecasts to trust. The art of managing is the ability to identify priorities, to understand which of today's trends will be the driving forces in the future, and what paths will be a dead branch and wither away. Sometimes it seems that in order to make this choice it is enoughto rely on analytical calculations. Sometimes intuition and "sense of the market" may be the most important. But I am convinced that the truth is, as always, somewhere in between. The results of "MegaFon’s" work, the company's future that we have built together, clearly proves this"

Facts and figures: Tim Berners-Lee, a software consultant, developed the program «Enquire», which provided a documented connection to computers all over the world and turned it into a reality cyberspace journey. In 1993, Marc Andreessen created the program «Mosaic», that enabled us to view images and text. Two years later, the “Netscape” browser announced the arrival of the Internet era. According to Juniper Research, by the end of this year there will be about a half million users of the mobile communication standard, LTE (Long-Term Evolution), and by 2015 - 300 million. In the "Finance-500" ranking of the 500 largest companies in Russia by net profits (2010 version) "MegaFon" ranks in the top-10. In five years from now, you can use any surface as a display function.

By expanding our network on a nationwide scale, we were not guided by only business priorities. First and foremost, we concentrated on the needs of society and the interests of the people in Russia, who are interested in the existence of an operator with the most extensive area of licensed coverage. Moreover, our presence in all regions of the federation provides "MegaFon" with a strategic competitive advantage – our advancement is premised on the special relationship with the social mission of the company, which is to create the conditions for communication between people, without borders and regardless of distances. In 2007, "MegaFon" became the first (and now it remains the only) operator that connects all Russian regions through its own mobile network.

Now that our market has reached a "mature phase", the strategic priority of "MegaFon" is the development of our own channels to attract and service customers. As we know from the experience of European countries, a client who subscribes to communications services in the operator’s salon, retains their loyalty to the company for a longer time and brings in a much higher mulitplier of monthly income, than a subscriber who came to the operator through a generic cellular retailer. "MegaFon" became the only federal operator who staked its future on building its own monobrand retail network.

In 2009, we had 1,470 “MegaFon” branded stores. By the end of 2011, that number doubled and increased to over 3,000 stores.

"MegaFon" works in one of the most dynamic industries where technology updates are occuring with rapid speed. It is essential for us to always be one step ahead. So, in anticipation of a quick saturation of the mobile market in the voice segment, a few years ago "MegaFon" demonstrated to the telecommunications industry participants the prospect of new communications standards that allow customers to focus on innovative services, data transmission and mobile Internet access. We were the first in Russia to start the commercial operation of a 3G network in the most promising standard UMTS. In 2010, we became the largest operator in Russia of 3G network coverage and number of users due to the speed in which we constructed new generation networks that allowed for the rapid expansion to all subjects of the federation. We are cognizant that the long-term perspective in the mobile industry and the key to successful competition is the reliance on the next generation of communication technologies: 3G (UMTS) and 4G (LTE). For "MegaFon" it is not enough to just be a leader in the 3G segment. While expanding our line of third generation services, we are also testing 4G technologies for the Olympics in Sochi to ensure that Russia, which is preparing to play a major role in this sporting event, will be provided with the most advanced mobile communications.

In June 2010, "MegaFon" acquired 100% of the shares of "Synterra". This reinforced our network infrastructure, and strengthened our position in the telecommunications markets in the spheres of fixed and mobile broadband Internet access and converged services. By utilizing “Synterra’s” main communication channels, "MegaFon" will be best positioned to improve the quality of its 3G network services, increase the speed of data transmission, and create a powerful platform for intensive future business development.

In creating the future of the Russian telecommunications market, "MegaFon" continues to follow its own path and its vision for success.