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Pursuant to Article 17 paragraph 1, item h), and in relation to Article 47 of the Law on Electronic Communications (Official Gazette of the

Republic of Macedonia no. 13/2005, 14/2007, 55/2007, 98/2008 and 83/2010), the Director of the Agency for Electronic Communications on 18.03.2011 adopted the

RULEBOOK on the manner of keeping accounting separation for activities related to interconnection and/or access and the manner of submission of accounting records I. GENERAL PROVISIONS Article 1 Subject This rulebook shall regulate the manner of keeping accounting separation for activities related to interconnection and/or access by an operator with significant market power on the relevant markets susceptible to pre-regulation (hereinafter: Operator) and the manner of submitting accounting records. Article 2 Purpose The purpose of imposing an obligation to keep accounting separation is to provide a higher level of detailed information that arise from the legal financial statements of the designated operator, to show as precise as possible the operations of the business units of the designated operator, equally as if they work as separate business units, in cases of vertically integrated enterprise to prevent discrimination by giving preference to its own activities and prevent subsidies. Article 3 Business units The designated operator, shall split its revenue, costs and the invested capital by activities carried out by the following business units. a) Business activities on the core network (hereinafter core network) is providing wholesale services for interconnection and/or access, internally and externally in order to allow subscribers from one operator to communicate with

subscribers of the same or other operators or to ensure access to services offered by another operator. These services include transfer of calls, leased lines and data transfer. In addition, the activities on the core network may provide other services to the operators such as engineering services related to the development and ongoing maintenance of private networks and development of the competition (number portability services and services with selection and pre-selection of operators). The accounts for the activities on the core network include costs, revenue and the invested capital related to providing these services. The revenue on the core network will result mainly from the sale of interconnection services for its own retail businesses and for the other operators. b) Business activities on the access network (hereinafter: activities on the access network) is providing connection to the core network and they include activities through which connection of end users to the core network on a wholesale market is provided, both internally and with other operators. The accounts for the activities of the access network include costs, revenue and the invested capital related to providing and maintaining a connection with the core network. The activities on the access network include all network elements intended for end users, such as line cards and ports located on concentrators or telephone exchanges. All other network components shall be included in the business activities of the core network. The revenue generated from services from unbundled access to local loops and (wholesale lease of subscriber lines), offered to other participants on the market should be allocated to the business activities of the access network. The revenue generated from monthly fees from the service network access for end users shall be recorded in the retail business activities. The costs for providing subscriber lines shall initially be allocated to the business activities of the access network, subsequently transferring them as costs of the retail business activities, in order to pair income to their related costs. The costs transferred to the retail business activities should be expressed as net costs from any revenue generated from the business activities of the access network, such as wholesale lease of subscriber lines to other market participants. c) Retail business activities (hereinafter retail activities) shall include all activities associated with the sale of telephone services to end users, including installing of subscriber lines, monthly fees for network access, telephone traffic, leased lines, public payphones, access to information service and providing phonebook services, as well as internet access and services with special price ( value added services). The accounts for the retail activities shall include the costs, the revenue and the invested capital arising from the provision of these services to end users, the transfer of costs associated with the use of the network resources or services provided by the business activities of the access network and the business activities of the core network, as well as marketing and billing costs related to the provision of the services to the end users.

For regulated services offered on a retail level, the obliged operators shall prepare separate accounts for each regulated service individually. d) Other business activities (hereinafter other activities) are all other activities not specified in items a, b and c of this article of the rulebook. Other services include services provided by the operators, which include rental, repair and maintenance of the equipment for end users. They can also provide services from non-telecommunication activities (such as broadcasting TV content or activities unrelated to provision of electronic communications networks and services). In order to fulfill the obligation for accounting separation, the costs the revenue and the invested capital associated with the provision of these activities shall be indicated in separate accounts . Article 4 Clarification and definitions In this rulebook, in addition to the definitions from the Law on Electronic Communications, definitions and clarifications are being used with the following meaning: a) Activities for interconnection are all activities related to interconnection for starting and ending calls in within the network and transit of calls across the network of the operator. The costs for interconnection to the electronic communication networks of other operators for ending calls started in the Operators network shall be written on the accounts for the interconnection activities. The accounts for these interconnection activities shall include costs, revenue and the invested capital related to the interconnection activities. b) Activities for leased lines are all activities related to the provision of leased lines connected to the core network (including the terminated segments of leased lines on the level of the core network). The accounts for the activities for the leased lines should include the costs revenue and the invested capital related to the activities for the leased lines. c) Transfer of costs the System for transfer of costs is applicable to the services and the products provided by one business unit (such as access network, core network and retail) and are intended for another. Each transfer of costs should be justified and conducted on a non-discriminatory basis and in a transparent way, broken down in the separate accounts. d) Accounting system of costs is a set of rules that regulate the participation of revenues, costs and capital intended for specified activities and services. e) Directly allocable costs costs that directly and unambiguously arise from the provision of a particular product or service of the operator and are allocated to the specific product/service.

f) Indirectly allocable costs are costs incurred by provision of two or more products/services and they are mutual. Fair methodology of allocation shall be applied at the allocation of these costs to the products and services based on a measurable non-arbitrary basis, considering the relation of these costs to directly allocable costs g) Non-allocable costs (Corporate general costs) are costs that do not arise from the provision of a specific product or service of the operator but are related to the provision of a specific product or service, i.e. current operations. These costs are allocated on an arbitrary basis. h) Wholesale services are public communication services provided by the operator both to its own retail unit and other operators of public communications networks and/or providers of public communications services. i) Retail services are public communication services provided by the operator through its own retail unit for its end users. j) LRIC (Long Run Incremental Costs) is a methodology for calculating costs. k) Increment is a specified additional volume/type of products or services provided by the operator l) Incremental cost is the cost caused by the additional provision of a defined increment for products/services or the saved cost when the defined increment of products/services is no longer provided. The incremental cost is calculated by adding or subtracting the increment of services and by identifying the effect over the categories of costs, using costs /volume ratio. II OBLIGATIONS OF THE OPERATOR Article 5 Accounting principles The operator shall conduct the accounting separation and prepare the reports on the accounting separation according to the following accounting principles a) Priority - preserving the hierarchical structure of the order of documents in the preparation of reports. b) Fairness and nondiscrimination each allocation of revenues, costs and the invested capital shall be objective and not go in favour of any operator, product, service, component, activity or split activity. c) Consistency the preparation of reports shall be in the same way for every year. Where

material changes of the accounting principles have occurred, the methods of allocation or the accounting policies that have a material effect over the information expressed in the financial statements of the business activities, parts of the financial statements from previous years wherever there are changes, shall be reformulated again. d) Transparency the used methods of allocation of revenues, costs and the invested capital shall be transparent. Article 6 Principles for allocation of expenses The accounting separation shall be based on the principle of causes - the costs and the revenue shall be allocated to those services or products that are the cause those costs or revenues emerged. This shall enable for: Review of each separate cost, invested capital and revenue, Determining the driver that causes the occurrence of each separate cost, invested capital and revenue, Use of the driver for allocation of each separate cost, invested capital and revenue to individual business activities. Article 7 Illegal subsidies The operator shall not use the revenue derived from providing products and services to a relevant market on which it was specified as a operator with a significant market power to cover costs incurred in providing products and services at prices lower than the costs of another potentially competitive market. Article 8 Accounting separation reports 1) The operator shall perform division of its revenues, operating costs and capital costs by business activities for the core network, access network, retail and other activities. 2) The operator shall prepare and submit: - Balance sheet, - Income statement, - Statement of cash flows - Statement for the changes in capital and reserves

Statement of the temporary accounting policies in the preparation of the mentioned statements Accounting separation reports shall be prepared and submitted according to the International Accounting standards for the activities on the core network, access network, retail and other activities. 3) The revenues, costs and the invested capital that are relevant for the services of the activities on the core network, access network, retail and other activities shall be represented in the accounting separation statements given in Appendix 1, which is an integral part of this rulebook. In addition, all reports shall clearly present any transfer of costs. If the amount of the corporate general costs exceeds 10% of the total costs, the Agency may ask the operator to additionally submit a detailed structure of the corporate general costs. 4) The operator shall explain the amount of the return of the invested assets applied in the calculation of the capital costs and the manner of its calculation in the accounting separation reports. (5) The accounting separation reports shall also contain: a) Explanation of the accounting policies used for the preparation of the accounting separation reports on the activities on the core network, access network, retail and other activities. b) Statement of reconciliation of costs and revenues expressed in the accounting separation reports with the audited annual account by an independent auditor. c) A matrix summarizing the total transfer of costs. d) Information on the methodology for allocation of costs used by the operator for the purposes of accounting separation. This information shall be detailed enough to clearly show the relations, for example, between the interconnection costs and interconnection prices. e) Report on the average costs of network elements. f) Report on the manner of allocation of the corporate general costs on the business activities on the core network, access network, retail and other activities 6) The operator that has an obligation to submit accounting separation reports shall submit them to the Agency each calendar year with a deadline until May 31st in the current year for the previous year.

7) The period for which the accounting separation is kept and the accounting separation reports are submitted shall apply on an annual basis, i.e. from 01.01.20xx to 31.12.20xx. 8) The operator who has an obligation to keep accounting separation as of May 31st shall be obliged to start to keep accounting separation for the current year, and the operator that has the obligation to keep accounting separation after May 31st shall be obliged to start to keep accounting separation from the next calendar year. 9) The accounting separation reports shall be audited by an independent auditor, selected by a previously formed committee of representatives of the Agency and the operator. The operatorshall pay the expenses for the work of the independent auditor. 10) The agency may publish the information obtained from the operator that are not confidential, according to the provisions of the Law on Electronic Communications, the drafted regulations based on it and another law in order to contribute to an open and competitive market. III ALLOCATION OF REVENUES Article 9 Allocation of revenues The operator shall allocate revenues from the provision of products and services from the business activities of products and services to which they relate, based on accounting records and data from the billing system. In cases where direct allocation based on accounting records or data from the billing system is impossible, the revenues shall be allocated on the basis of causation. Article 10 Revenues from initial connection The operator shall allocate revenues from the initial connection on the public fixed/mobile network (except for the interconnection revenues) to the retail business activities. Article 11 Revenues from use and maintenance of ports The operator shall allocate the annual revenues from use and maintenance of ports to the retail business activities.

Article 12 Revenues from leased lines The operator shall allocate revenues from leased lines to the retail business activities. Article 13 Revenues from unbundled access to a local loop and wholesale lease of Subscriber lines The operator shall allocate revenues from unbundled access to a local loop and wholesale lease of subscriber lines to the business activities of the access network. Article 14 Interconnection revenues The operator shall allocate interconnection revenues, including one-time fees to establish an interconnection point and the revenues from the aspect of volume of services for interconnection to the business activities of the core network. Article 15 Revenues from calls The operator shall allocate revenues from calls respectively to the relevant services within the retail business activities. Article 16 Revenues from other activities (1)The operator shall allocate revenues from other activities to the relevant services allocated within "other activities. (2)Operators may generate revenue from other services in accordance with the principle of basis for causation and they shall be allocated to the activities they belong to. The revenues from lease/selling of equipment (for using electronic communications services and other) shall be allocated to other activities. (3)The revenues from investing in fixed assets shall be allocated to the fixed assets the investment is intended for. Other revenues from investing in activities that do not belong to the core network, access network a retail shall be allocated to other activities. (4)The same principles shall apply to revenues derived from short-term investments. The revenue is allocated to the activities the investment is intended for. Article 17 Universal service fee

If the operator is a provider of a universal fee, the assets received from the fund of the universal service shall be allocated to retail activities. In addition, there shall be an explanation on the bills which will be indicative that there is no discrimination between the fees imposed to other operators and the ones that are imposed (implicitly) internally. IV ALLOCATION OF COSTS Article 18 Allocation of costs The operator shall allocate costs for the provision of products and services from the business units to products and services to which they relate, based on accounting records and data from the billing system. In cases where direct allocation based on accounting records or data from the billing system is impossible, the costs shall be allocated on the basis of causation, as well as the description in the allocation tables of Article 20 of this rulebook that define the relations between the costs of the network elements and the costs of the services. Article 19 Determining agents and measuring volume The operator shall determine the degree to which the increments, the services and the network elements generate a specific category of operating costs by using agents. In this way, categories of costs shall be allocated to increments, services and network elements, depending on the volume of their agent. Article 20 Tables for allocation of costs The operator shall allocate costs according to the tables of allocation of costs given in Appendix 1 that are an integral part of this rulebook and that identify the relations between costs of the network elements and the costs of services. Article 21 Cost-volume ratio The operator shall express the cost/volume ration for each category of costs separately, which is a basis for estimation of the increments and the general costs. Article 22 Universal service For the purpose of better accounting, the costs arising from the provision of the universal service and the subsidies that the operator shall receive as part of the compensation

Mechanis, specifically stand out from the rest of the costs in the accounting reports. Article 23 Methodology for allocation of costs The operator shall prepare the costs expressed in the accounting separation reports from this rulebook for the application of the LRIC methodology. The agency shall adopt and publically announce the description of the accounting system for costs according to the LRIC methodology for operators with significant market power on the relevant markets for public fixed telephone networks and services and for operators with significant market powers on the relevant markets for public mobile telephone networks and services. V TYPES AND VOLUME OF SERVICES Article 24 Types of services in wholesale The operator shall keep accounting separation for the following services in wholesale: a) Interconnection services b) Services for transiting traffic c) Services for selection and pre-selection of operators d) unbundled access to local loops e) Wholesale lease of subscriber lines f) Other services Article 25 Types of services in retail The operator shall keep accounting separation for the following services in retail: a) Local calls b) National calls c) International calls d) Services for access to customer information services/Directory Enquiry e) Public payphones f) Leased lines g) Data transmission - Internet h) Premium rate services (services with special price or so called value added services )

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i) SMS, MMS (mobile telephony) j) Other services. Article 26 Volume of services The operator in the accounting separation reports shall include data on the realized volume of services provided through its activities performed by its business units. V TRANSITIONAL AND FINAL PROVISIONS Article 27 Transitional provisions The accounting separation reports referred to in Article 8 paragraphs (1),(2),(3),(4) and (5) from this Rulebook shall be prepared by operators with significant market power in accordance with the provisions of this Rulebook as of 01.01.2011. Article 28 Cessation of validity The Rulebook on the manner of keeping accounting separation for activities related to interconnection and/or access (Official Gazette of the Republic of Macedonia no. 112/08) shall cease to be valid on the day of entry into force of this rulebook. Article 29 Entry into force This Rulebook shall enter into force on the day following the day it is published in the "Official Gazette of the Republic of Macedonia". After entering into force, this Rulebook shall be published on the webpage of the Agency for Electronic Communications. Agency for Electronic Communications Director Robert Ordanoski

No. 02-1640/1 March 18th 2011 Skopje

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APPENDIX 1 I - Accounting separation reports II Method of allocation of operating costs III Tables for allocation of costs and invested capital IV - Report on transfer of costs VSummary of all activities

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1.2

I - Accounting separation reports 1. For business activities of the core network

1.1 Statement for profit and loss on the core network Current year Turnover - Diverted from retai (by type of services)l x - From other operators of public fixed communication x networks operators of mobile communication networks x International operators Total turnover ____________________________ x _____ Operating costs (by types of services) - Direct costs x - Indirect costs x Total operating costs _______________________ x _____ Return __________________________ x ______ Previous year x x

x __________ x ________ 1 x xCorporate costs __________ _ _______ 2 _________

x x

x ________ 3=1-2

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1.2

1.2 Statement of Balance sheet for the business activities on the core network

Current year Fixed assets - Tangible fixed assets x - Intangible intangible assets x - Investments x Total fixed assets _________________________ x _____ Current assets - Stocks x - Debtors x - Investments x - Cash (at bank and in hand) x Total current assets ________________________ x _____ Creditors Provisions for liabilities and changes Mean capital employed _____ x _____ _____ x _____

Previous year x x x _______ x _______ 1 x x x x _______ x _______ 2 _______ x _______ 3 _______

x _______ 4 x _______ _________ x

5=1+2-3-4

1.3 Return on capital employed Return Mean capital employed Return on Mean capital employed (%) Current year x x _x__ Previous year
X X 1 2

__x___ 3=1/2

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2. For business activities on the access network 2.1 Statement of profit and loss on the access network Current year Turnover by types of services - Diverted from retail x - From otheroperators x Total turnover ____________________________ x _____ Operating costs by types of services - Direct costs - Indirect costs x x x _________ Previous year x x _________ x _______ 1 x xCorporate costs

Total operating costs _______________________ x _____

Return __________________________ x _____

x _______ 2 _________ x ________3=1-2

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2.1

2.2

Balance sheet statement for the business activities on the access network Current year Fixed assets - Tangible fixed assets - Intangible fixed assets - Investments Total fixed assets Current assets - Stocks - Debtors - Investments - Cash (in bank an in hand) Total current assets Creditors Provision for liabilities and charges Mean capital employed x x x x x x x x x x x x Previous year x x x x x x x x x x x x

2 3 _4 5=1+2-3-4

2.3 Return on Mean capital employed (%) ofthe access network Current year x x x Previous year x x x

Return Mean capital employed Return on Mean capital employed (%)

1 2 3=1/2

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3. For retail business activities 3.1 Statement of profit and loss of retail Current year Revenue by types of services - From the initial connection - From usage and normal connections - calls - From leased equipment and - Other revenues Total turnover __________________________________ Operating costs by types of services -Operating costs specific for retail - Direct costs - Indirect costs -Corporate costs -Diverted costs from core network (by types of services) -Diverted costs from access network (by types of services) Previous year x x x x x x _______ x x x x x x x X maintenance of x X sale of equipment x ________ x ________ 1 x x x X

Total operating costs _____________________________ x _______ ________ x ________ 2 Return (excluding Universal Service contribution, if any) X _________ ________ X 3=1-2 Universal Service contribution, if any ______ X ______ Return (including Universal Service contribution, if any) X ________ X ________ 4 X 5=3+4

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3.2

Statement on Balance sheet of the retail business activities Previous year x x x _______________ X _____________________x ______ x x x ______________ ________ x x

Current year Fixed assets - Tangible fixed assets - Intangible Fixed assets - Investments Total fixed assets

1 x x x

Current assets - Stocks - Debtors x - Investments - Cash (in bank or in hand) Total current assets

X ________

___________________x ______ ______ x_______ ______ x_______ x ____ ____

x2 x______ 4

Creditors Provisions for liabilities and charges Mean capital employed ____

_______ x ______ 3 ________

5=1+2-3-4

3.3 Return of the Mean capital employed in retail Current year Return x Mean capital employed x Mean capital employed (%) __________________ x _______ Previous year X X __________

1 2 3=1/2

x ________

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4. For other business activities 4.1 Statement on profit and loss of other business activities Current year Turnover by types of services x x Total revenues _____________________________________ x _____ Operating costs by types of services - Direct costs x - Indirect costs x - Corporate costs x Total operating costs _________________________________ x _____ Return ____________________________________________ x _____ 4.2 Statement of Balance sheets of other business activities Current year Fixed assets - Tangible fixed assets x - Intangible fixed assets x - Investments x Total fixed assets____________________________________ x ______ Current assets - Stocks x - Debtors x - Investments x - Cash (in bank and in hand) x Total current assets __________________________________ x ______ x Creditors _____ x ______ Provision for liabilities and charges _____ x ______ Mean capital employed ___ x ______ _____ x _____ 5=1+2-3-4 Previous year

______ x ______1 x x x ______ x ______ 2 ______ x ______ 3=1-2 Previous year x x x _____ x _____ 1 x x x x _____ x _____ 2 _____ x _____ 3 _____ x _____ 4 19

4.3 Return of mean capital employed in other activities Current year Return x Mean capital employed x Return of the Mean capital employed (%) XX

Previous year X X x 3=1/2 1 2

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Categories of operating costs Depriciation Procurement and installation of equipment costs for maintenance and repairs

Description Depriciation costs for salaries

Method of allocation The amount for depreciation is allocated according to the allocation of fixed assets Directly on the network elements/other equipment where possible; otherwise, allocation on the basis of the time spent for installation of the equipment Directly on the network elements/other equipment on the basis of the installed equipment or maintenance Directly on the network elements/other equipment where possible; otherwise, allocation on the basis of the time spent for installation of the equipment Directly on the network elements/other equipment Directly on the network elements/other equipment

Business activity All activities Core network, access network Core network, access network Core network, access network Core network, access network Core network, access network

costs for installation, contract and maintenance costs for salaries

Other costs costs for network planning and development costs costs for network administration costs for salaries and other costs

costs for salaries

Other costs costs for marketing and costs for sales costs for salaries

costs for equipment sales -Advertisement -Promotions -Market research -

Allocation of network elements/other equipment on the basis of the time spent by the staff to manage every type of equipment Allocated on the network elements/other equipment on the basis of the equipment it is administered Directly on products and services where possible; Otherwise the two types of activities are allocated based on working hours Allocated to the service for sales of equipment to customers under Other activities Directly on products and services where possible. Otherwise, for the costs relating to promotion and

Core network, access network Core network, access network Retail

Other activities Retail

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costs for billing and costs for collection

Compensation for distributors -Other costs costs for salaries

advertisement of a number of services, the costs should be allocated to the appropriate services on a reasonable basis Directly on products and services where possible; otherwise, allocated between the two types of activities based on working hours Directly on products and services where possible; otherwise, allocated between the two types of activities based on usage (eg number of invoices made)

Other billing costs (including outstanding claims) costs for services of the operator costs based on data Payments to other operators costs for salaries

costs for support

Directly on services where possible. The costs for salaries for the staff performing tasks for various services of the carrier, allocated to the appropriate services based on the time spent to perform different tasks costs for salaries and other costs Directly to products and services Payments to abroad for Directly to products and services Outgoing international traffic Payments for Directly to products and services interconnection services costs for performance of These costs are allocated to the staff that activities from the domain of performs the listed activities and they are human resources allocated on the same basis as costs for salaries for the personnel of human resources Finance and other administrative If they are specifically related to a certain product, service or support functions business activity costs for buildings and lease These costs shall be allocated equally as the expenses for land and buildings

Retail (some of the costs are Allocated to the core network) Retail (some costs are allocated to the core network) Retail

Retail Retail Retail All activities

All activities All activities

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III- Table for allocation of the invested capital costs for computer systems/IT expenses These costs shall be allocated to the applications led by the All activities operator based on the use of systems (computers) that support each application. The costs allocated to applications are the allocated to the products and services that they support

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III- Table for allocation of the invested capital Categories of assets and obligations Material assets Primary network assets Switching equipment Description Method of allocation Business activity

Local connection equipment

Equipment for transit exchanges Equipment for international connectivity Connectivity equipment for specific network services

Directly on access or network elements wherever possible. Core network (some costs Otherwise allocated to the services for local access to network for local access network) and network elements based on the relevant costs of the equipment for providing user lines and to parts intended to divert traffic respectively. The elements of the network for local connection may be allocated to products and services based on the usage expressed in seconds. Wherever possible directly to network elements, otherwise Core network allocated based on the usage expressed in seconds. Wherever possible directly to network elements, otherwise Core network allocated based on the usage expressed in seconds. Directly to the elements of the core network where it is Core network, other appropriately/ regulated or to specific services provided by activities other networks for example the equipment for connecting data transfer shall be allocated directly to the data transfer services

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III- Table for allocation of the invested capital Other connectivity equipment Directly on network elements where possible, otherwise allocated to other network elements for connecting basedon on the use of the equipment Directly on network elements wherever possible, otherwise allocated based on the usage of vehicle commutation Directly on access or network elements wherever possible, otherwise allocated to elements based on the quantity of cable used to provide different services Directly to products wherever possible (eg specially identified access equipment), otherwise allocated between access services based on line usage Directly to network elements wherever possible, otherwise allocated based on the usage of channels Directly to the specific non-PSTN/non-ISDN services provided through the network - eg the data transfer equipment is directly allocated to the data transfer services Directly to network elements wherever possible, otherwise allocated based on the usage The assets and the equipment uses specifically for providing one specific service is allocated directly to the appropriate service, for example: sophisticated network equipment, data transfer equipment and multimedia equipment Directly to products and services Directly to services Core network

Transmission Transmission equipment sensitive to equipment traffic volume Cable and wire

Core network Access network, Core network access network

Local loop equipment

Radio and satellite equipment Equipment for transfer of special network services International lines Other primary network assets Special network equipment

Core network Core network

Core network Core network Other activities

Customer equipment Public payphones and appropriate equipment

Other activities Retail

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Support equipment

Channel Power equipment

Network administration systems

Non-network fixed assets

Land and buildings

Computer systems

Motor vehicles Furniture and office equipment

The channel is allocated to the cable and wire within and is allocated to products/services equally as cables and wires Allocated to the primary groups of equipment based on the usage of the power equipment to support every equipment such as kilowatts per hour The assets are then allocated to products/services in an equal manner as the relevant primary groups of equipment Allocated to the primary equipment of different networks based on the usage of support systems for each separate equipment for example the time spent to control the local, transit and international exchange. The costs are allocated to products and services in an equal manner as the appropriate primary groups of equipment. Allocated to products, services and network elements based on the used space (i.e. floor surface) for support of each product, service or network element. Allocated to applications used by the carrier based on the usage of computers for support of each application. The expenses allocated to applications are then allocated to the products and services that they support Allocated to products and network elements based on usage. Allocated to products and network elements based on usage.

Access network, Core network Access network, Core network

Core network

All activities

All activities

All activities All activities

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Fixed intangible assets

Fixed intangible assets

Directly on products wherever possible; Some Other or unallocated assets shall be allocated on arbitrary basis, in accordance with the AEC. Other activities Other activities All activities All activities All activities All activities

Working capital

Investments in fixed assets: Financial investments Directly to other activities Investments in unrelated activities Directly to other activities Other investments Directly to services for which the investment is intended, otherwise allocated based on usage Short-term investments (including Directly to activities wherever possible, otherwise allocated cash in bank and cash register) based on the operating requirements of each activity Securities Securities should be allocated directly to products and services Commercial Commercial debts are allocated to products and services based on debts/Claims from buyers data from the billing system, wherever possible. The unallocated residual should be allocated on an arbitrary basis, in accordance with AEC. Other claims from buyers Other claims from buyers are split into products and services, wherever possible. The unallocated residual should be allocated on an arbitrary basis, in accordance with AEC. Trade loans Loans are allocated to products and services, wherever possible. The unallocated residual should be allocated on an arbitrary basis, in accordance with AEC. Long-term reserves Directly to activities that increase reserves

All activities

All activities

All activities

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Tax liabilities and dividends

No need to be allocated. Instead, the average obligations shall be All activities taken into consideration while reviewing operating cash monetary claims of every business activity costs for buildings and lease These costs shall be allocated equally as the costs for land All activities and buildings costs for computer systems/IT costs These costs shall be allocated to the applications led by the All activities operator based on the use of systems (computers) that support each application. The costs allocated to applications are the allocated to the products and services that they support

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costs / services

Network costs

Local access costs x

Total divert of costs x Retail services x Local calls x National calls x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Leased lines Calls to mobile Internet Other Other activities 29 x x International calls Info center services Public payphones Additional services Supply of equipment x x Services from other activities x

IV

From / To ------ >

| V
Access Network Retail Other Total

Access network (in Denars)

Core network (in Denars)

Retail (in Denars)

Other Activities (in Denars)

Total (in Denars)

x x x x x x x x

x x x x

x x x x

x x x x x

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