Expenses by nature

Operating expenses are presented on the face of the statements of comprehensive income using a classification based on the functions “Cost of sales”, “Selling and marketing expenses” and “General and administrative expenses”. Total expenses by function were distributed by nature as follows.

In thousands of Kazakhstani Tenge 2012 2011
Interconnect fees and expenses 27,633,746 20,301,197
Network maintenance expenses 10,868,188 9,400,289
Transmission rent 9,144,685 7,767,549
Frequency usage charges and taxes other than on income 5,797,805 5,785,612
Cost of SIM card, scratch card, start package sales and handsets 2,597,334 5,735,296
Sales commissions to dealers and distributors and advertising expenses 12,365,505 12,992,203
Staff costs 7,653,180 6,977,131
Others 5,649,838 3,806,111
Depreciation of property, plant and equipment and amortization of intangible assets 22,780,745 22,895,904
Total expenses 104,491,026 95,661,292

Amortization and depreciation by function were as follows.

In thousands of Kazakhstani Tenge 2012 2011
Cost of sales 19,787,578 19,907,408
General and administrative expenses 2,993,167 2,988,496
Total depreciation of property, plant and equipment and amortization of intangible assets 22,780,745 22,895,904