KCell Business

Subscribers

Kcell’s customer-centric business approach helps maintain its market-leading position. The Company’s Customer Relations Department seeks to maintain long-term relationships with subscribers and dealers by offering a consistently high level of customer service, and provides subscribers with individual support through call-centers and walk-in centers, as well as self-service assistance via the Internet and its interactive voice response (IVR) system. The Company continually monitors the quality of service provided to subscribers. The Company has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers) and high net worth individuals and the Activ brand, which is targeted primarily at mass market subscribers.

Services

Mobile Voice Telecommunications

Kcell offers basic cellular communication services, such as voice calls and SMS, which made up a 80.6% share of the Company's revenue for 2012. In addition to primary call services, cellular telecommunications services include voice mail, call waiting, call forwarding, caller identification, conference calls, collect calling and roaming services.

Value-added Services

Kcell offers a wide range of additional services, including MMS, information and entertainment services (such as ring back tones, financial services weather forecasts, exchange rates, news, and other information). Value-added services are an essential part of the business because they allow the Company to stand out from the competition, strengthen its brands, encourage customers to use Kcell’s services more often and increase customer satisfaction.

Data Services, including Internet Access

Kcell is the leading provider of data services in Kazakhstan. We see strong potential for growth in mobile data services in Kazakhstan, and believe that it is well positioned to take advantage of this expected growth. As a result of developing its 3G networks, Company is able to provide a higher data growth rate.

Other Services

Other services consist primarily of telephone and USB modem sales

Resources

Strong Brands

Since 1999, Kcell has placed priority on its brand development and image enhancement as a provider of reliable connectivity and high quality customer service.

The Company’s branding strategy envisages the development of the Kcell brand as a premium brand targeted primarily at corporate and high net worth individual subscribers and the Activ brand as a brand targeted at the mass market. Such a strategy has allowed the Company to strengthen its presence in the premium segment while maintaining a leading position in the mass market segment, and contributed to the Kcell and Activ brands’ market leadership.

Professionalism

Kcell currently employs more than 1600 people as part of its strong team of high-level specialists, focused on high levels of labor efficiency and customer satisfaction.

The strong senior leadership team has many years of experience in the Kazakhstani and international mobile markets, and expertise in the fields of telecommunications, finance, marketing and information technology.

Over the past few years, the Kcell team, led by the current management team, demonstrated its ability to operate successfully in a growing market, maintain a leading position, and meet the challenges of expanding the network, introducing new services and technologies, and improving the quality of service.

The Kcell team is strongly motivated to achieve peak value in key performance indicators that are consistent with the interests of shareholders in the long-term growth in value of the Company.