Romanian Market OverviewPresentation Zilele BIZ Bucharest, October 2004 1 Document number During the past couple of years the Romanian munication market experienced noteworthy developments passing all its major segments Source: Roland Berger Strategy Consultants estimates and analysis Fixed line munication Following the opening up of the fixed line market in January 2003, several new players have emerged, although ‘s leading position is not yet threatended Market liberalization translated into decreasing tariffs for international calls and long – distance calls, while the still petition segment of local calls faced tariff upsurge Several potential sizeable players are expected to enter the market within the next year, . , SNR increasing petition throughout the fixed telephony market Mobile munication Mobile telephony has been at the forefront of market‘s development As the mobile market is nearing its maturity phase (with slower client base growth and declining ARPU levels) competition is getting tougher between the 4 existent mobile operators Voice transmission services still dominate the market, although there is as clear trend towards bundled product packages wih increase value added 2005 will likely mark the entrance of 3G technology in the market and data transmission The last period saw a clear consolidation trend following a significant M&A wave which is yet to have ended Reflecting the changes in customers‘ needs plexity of data transmission services has increased spanning different technological solutions Mobile operators also target this segment by providing data transmission services and access over mobile phones via G or G technologies 2 Document number The Romanian market has steadily increased over the last five years with mobile telephony playing the leading role Source: Roland Berger Strategy Consultants estimates and analysis Mobile telephony Fixed telephony and other data transmission services Evolution