Eurasia

Market Data Total population 380 million, Average GDP growth 6.0% 2008 Mobile penetration ranges from 14% to 130% Penetration figures 2008 Sources: Global Insight, The Swedish Institute of International Affairs.

Strong positions in mobile growth markets

TeliaSonera has strong positions in the mobile growth markets of Eurasia with majority-owned companies in eight markets, and via associated companies MegaFon in Russia and Turkcell in Turkey, including Turkcell’s subsidiaries in the Ukraine and Belarus. TeliaSonera also has a financial holding in Afghanistan.

TeliaSonera owns 74 percent of Fintur Holdings, which manages mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Nepal and Cambodia. TeliaSonera entered Nepal and Cambodia in October 2008 by acquiring controlling interests in the two mobile operators Spice Nepal Private Limited and Applifone Co Limited. Spice Nepal offers services under the brand Mero Mobile and Applifone under Star-Cell. The acquisition marked a further important step in the execution of TeliaSonera’s strategy to expand to new high-growth emerging markets, and followed other successful investments in the region. In 2007 TeliaSonera acquired Uzbekistan’s now second largest mobile operator UCell (previously named Coscom), and Indigo and Somoncom, combined the largest mobile operator in Tajikistan, as well as a financial holding of 12.25 percent in Roshan, the leading operator in Afghanistan.

www.kcell.kz	www.azercell.com	www.geocell.ge	www.moldcell.md

www.indigo.tj	www.ucell.uz	www.roshan.af
www.somoncom.com	www.spicenepal.com	www.star-cell.net

Eurasia is the growth engine of TeliaSonera. In many respects customer demand is the same in our emerging markets as in the Nordic and Baltic countries, and similar technology and services trends apply. There are however some underlying differences in demography, economic development and telecommunications availability.

With young and large populations, low mobile penetration and expanding economies, the countries in this part of the world provide a valuable opportunity for growth. In addition the fixed line infrastructure is less developed. The growth potential therefore lies in expanding the customer base significantly, increasing mobile usage, and further ahead also in mobile data.  

With 29 million inhabitants Nepal is the largest of the eight markets where TeliaSonera has majority-owned operations. Uzbekistan has 28 million inhabitants, followed by Kazakhstan and Cambodia with 15 million and 14 million respectively. Azerbaijan has 8 million inhabitants, Tajikistan 7 million, Georgia and Moldova each 4 million.

Our operators offer a wide range of services for voice and data, high-quality networks and good customer support. All of them have strong market positions. K'cell, Azercell and Geocell are market leaders. Applifone in Cambodia is still a start-up.

The data in the table refers to 2008. For additional financial information, please refer to TeliaSonera's 2008 Annual Report.

In Russia, TeliaSonera owns 43.8 percent in MegaFon, the country’s third largest mobile operator. Russia has 143 million inhabitants. The mobile market has undergone a phase of strong growth.

MegaFon is rapidly implementing its pan-Russian strategy by establishing a nationwide network and launching mobile services in the market. MegaFon is the only operator with mobile licenses in all of Russia’s 83 regions and is also present in Tajikistan through its ownership in TT Mobile which offers mobile services under the brand MLT. TeliaSonera’s effective ownership in TT Mobile is 33 percent.

MegaFon continued to show strong performance in 2008 and increased its subscription base by 7.9 million to 43.6 million. MegaFon increased its market share in terms of subscriptions.

www.megafon.ru

In Turkey, TeliaSonera owns 37.3 percent in Turkcell, the country’s leading mobile operator. Turkey has 73 million inhabitants. The fixed line penetration is low at approximately 25 percent. This increases demand for mobile communications and the Turkish mobile market has grown rapidly in the past several years.

Turkcell has a strong brand, a wide range of value added services and good customer support. Turkcell's network covers all locations with more than 5,000 inhabitants. Turkcell showed strong performance in 2008 and with a subscription based of more than 36 million is among the largest mobile operators in Europe.

Turkcell also offers mobile services in Ukraine under the brand Life, in northern Cyprus via the subsidiary KKTCell and Belarus in 2008 under the brand Best.

Turkcell is listed on the New York Stock Exchange and the Istanbul Stock Exchange.

www.turkcell.com