Syria

Ismail JaroudiCEO

2

Country overview

Penetration 30.3% (Jun 07)Market sizing 8.6m (2011)Population 19.1m (Jun 07)

90% Muslim, 10% ChristianReligion

Deposit interest rate (local currency) 6% averageLocal Rates

ArabicLanguage

$1 614GDP/Capita

Demographics

USD$ = 48.5 SYPCurrency

9.5%Inflation

Economics

3

Telecommunication environment

EconomicEnvironment

PoliticalEnvironment

RegulatoryEnvironment

• High inflation rate• Higher value of the Syrian Pound• Dynamic private banking sector leading financial activities and growth• Price hikes in real-estate, utilities, and gas

• Unsettled regional environment • Increasing pressure for economic reforms and advancement of peace process

• The BOT guidelines still represent a real barrier to a full competitive market.• The regulator still does not have a clear strategy and conceptual vision for

future licenses (3rd entrant, Wifi, WiMAX, VoIP, Broadband).

4

Market dynamics

• Third operator to launch in mid 2009

• Considerable potential for growth• GSM services (data, targeted

product portfolios)

• High churn rate strongly related to affordability

• Challenging untapped addressable market

• Low incomes

• Highly price sensitiveSource : MTN

Market Share vs Penetration

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Market share PenetrationJun-06 Dec-06 Jun-07

5

Market players

MTN 75%Teleinvest 25%

75% geographical98% population

SiemensEricsson

2.9m (Sep 07)

2001(BOT effective Jun 02)

MTN

Syrian GovernmentDrex TechnologiesShareholders

Nationwide75% geographical98% population Coverage

SiemensEricsson

ZTE

SiemensEricssonHuawei

Suppliers

3.8m (est)3.47 (Sep 07)Subscribers

19752001Launch date

Syrian Telecom(fixed line)

Syritel

6

Operational structure

CEOIsmail Jaroudi

CTIOAbdallah Homsi

GM BRMMaher Bairakdar

GM MarketingZiad Sabah

GM SalesTarek

Noureddine

GM Customer Service

Samer Kdouh

GM FinanceKamal Santina GM HR

GM Capital Projects

Anas El Khani

GM TechnicalZakwanKhayat

GM Information

ServicesWassim Saad

7

Licence

Period

Fees

Spectrum

Coverage

• Commenced in 2002• 15 years BoT contract on a revenue sharing basis, extendable for 3 years

• Year 1 to 3 - 30% of total revenues• Year 4 to 6 - 40% of total revenues• Year 7 to 15 – 50% of total revenues

• 6.4 MHz on 900 band• 12 MHz on 1800 band• 3G Trial

• 98% of population

8

Highlights

• Exceeded subscriber growth expectations

• Strong and successful launch of MTN brand

• Licence opportunities include• ISP, Broadband, WiMaX

• Aggressive sale promotions• Launch of 3G trial services in

Damascus and Alepp

*Unaudited

2,5922,896

2,237 2,381

22 20 21 21

Q4 2006 Q1 2007 Q2 2007 Q3 2007

MTN Subscribers ('000) ARPU (USD)

Subscribers/ARPU

ZAR 403*ZAR 679EBITDA

7.5%11%Capex/ Revenue

ZAR 1 443*ZAR 2 141Revenue

Jun 2006Jun 2007

9

Infrastructure

2.9mTotal EOY active subscribers

98%% Population covered

2 763Total number of BTS’s

2 035Total number of sites

32Total number of BSC’s

14Total number of MSC’s / MSC-S’s

Aug2007

Technologybenchmarks

77%% land covered

10

Roll-out plan

55%

29%

16%

EquipmentCivil work for NWCustoms & stamps fees

Anticipate spending 80% of budget

MTN Syria challenges

11

Distribution

Distribution structure

MTN8844 POS

EXCLUSIVE Dealers11Players8806 POS

CSP38 POS

EXCLUSIVE SUB-DEALERS75 Players

SUB- DEALERS NON-EXCLUSIVE35 Players

6600 POS 2060 POS

2780 POS

12

Products 2007

TrialTrial3G Services

Evaluating Wimax(regulatory

issues)

Evaluating Wimax(regulatory

issues)Very limitedBroadband Services (ADSL)

Basic data (GPRS)

Basic data (Internet)

Voice

MTNSyriatel(Wireless)

STE (Wireline)Products & Services

13

Looking forward

• Member of group (best practices, synergies, knowledge sharing

• Growing GSM market

• Possibility of converting BOT contract to licence

• Leverage on MTN resources where resources are scarce

• BOT contract (high revenue sharing)

• Accessibility to foreign currency

• High Churn

• US Embargo / Export licenses

• Scarcity of skilled resources

ChallengesOpportunities

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