Canabilzation Rate:

Assumption : From Ufones pre paid and post paid detailed subscribers data(chart 1) we are assuming that proportion of zong subscriber mix and the proportion of Ufone subscriber mix in the form of pre paid and post paid customer is same. Thus, with this assumption we can assume the cannibalization rate of Zong(Chart 2) between pre paid and post paid customer for the FY09 and FY10. Upon calculation, we deduced that the cannibalization rate of Zong between its pre paid and post paid services between the years FY09 and FY10 is 0.1%. This means that on average ,each year , revenue equal to 0.1% of the total revenue of pre paid services is lost by the post paid services due to conversion of either post paid subscribers into pre paid or post paid customers switching the brand. Chart 1
Post-paid % of total subs Ufone GSM China Mobile Ltd. (Paktel) FY09 2.7% 2.7% FY10 1.6% 1.6%

Prepaid/wsl % of total subs: Ufone GSM China Mobile Ltd. (Paktel) 97.3% 97.3% 98.4% 98.4%

Chart 2

FY09 Post Paid Subscribers(Million) Ufone GSM China Mobile Ltd. (Paktel) 0.54 0.1728

FY10 0.3136 0.1072

YoY growth

Revenue lost/gained(YoY growth * 87)

Cannibalization in Post Paid Product

0.0656

Rs -10.5.7072 Million 10.57 Million/ 10550.375 million = 0.1%

Pre Paid Subscribers(Million) Ufone GSM China Mobile Ltd. (Paktel) 19.46 6.2272 20 Million 6.4 Million 19.2864 6.5928 19.6 Million 6.7 Million 0.3656 Rs 58.525 million

Ufone Total Subscribers(Pre Paid + Post Paid) ZongTotal Subscribers(Pre Paid + Post Paid) ARPU Q1 2010 $1.84 ( 1$= Rs 87)