Belarusian Internet & Belarusian Business :

Extremely Short Overview

Yury ZisserFounder and Chairman of TUT.BY Belarusian Portal,

Deputy Chairman of Belinfocom, Association of IT & Telecom Enterprises

4.14M internet users (51% of population) of age 15+. 66% broadband

External Internet channels 200 Gbit/s (1.8 Gbit/s in 2006)

10.7M mobile users (penetr. 113%). 1.8M users of mob. Internet

Broadband: $2/mo+, flatrates $7/mo (1 Mbit) to 39$/mo (20 Mbit)

UN e-gov report: telecom infrastructure index 48th of 106

0,465 1,8 3,1 5,217

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DATA: UN`2012, Gemius`2011

Lithuania

Internet: 68%

UN: 38 & 29

Latvia

Internet: 66%

UN: 47 & 42Russia

Internet: 46%

UN: 30 & 27

Poland

Internet: 54%

UN: 50 & 47

Belarus

Internet penetration: 51%

UN telecom index: 48

UN e-gov readiness index: 61

Ukraine

Internet: 33%

UN: 79 & 68

Top Websites by Coverage of Belarusian Users

Only 20 local sites in TOP-50, 8 of them are mediaGEMIUS FUSION, DEC`2011

# Site Coverage

1 Google 64,36%2 Mail.ru 63,43%3 Yandex.by 56,70%4 Vkontakte.ru 52,25%5 TUT.BY 46,39%

11 Onliner.by 23,41%

18 Byfly.by 15,85%19 Interfax.by 15,31%

23 Deal.by 13,89%

26 Zaycev.by 11,99%27 Irr.by 11,94%28 Relax.by 11,65%29 Abw.by 11,37%

31 Kufar.by 11,03%

33 Av.by 10,48%

37 Naviny.by 9,51%

39 Charter97.org 9,41%40 Shop.by 9,20%41 Kp.by 9,09%

45 Vceti.by 7,60%

47 Second.by 6,01%48 Migom.by 5,94%

50 Open.by 5,48%

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Yet Again: Belarus is an Internet Enemy

International internet channels are state-monopolized

Blacklist of sites blocked in governmental, educational and cultural institutions

HTTPS protocol and some sites blocked during presidential elections in Dec 2010

KGB forced to erase VKontakte soc. net. group devoted to actions of silent protests

False rumors on “penalties for visiting foreign sites since Jan 6, 2012”

Hi-tech park: State Preferences To Software Development

Since 2005: 100+ enterprises, 12,000+ workers, minimum taxes

ICT export $215M in 2011

Average ICT-salary ~$1,000/month (country average $342 in Dec 2011) AS OF JANUARY-FEBRUARY`2012

EPAM Systems Listed on NYSE Since Feb 8, 2012Software Development Outsourcing

Shares bullish from $12 to $16.8

Revenue $240M USD, market capitalization $700M

Employees 7,000+ globally including 3,000 in BelarusSHARES INFO AS OF MARCH, 16, 2012; EMPLOYEE NUMBERS – END OF 2011

EU Economic Sanctions(red – current, pink – proposed)

Really economy is sponsored by Putin’s Russia

TOP-200 businessmen in Belarus (EJ.by)

The Most Significant Doing Business Obstacles in 2011National currency devaluation by 2.6 in 2011, inflation 109% (Minstat)

Legal import was paralyzed since March till September 2011

Since 2005, Paying Taxes is Becoming Easier

DATA: Doing Business

Ease of Doing Business in Belarus

Small Business by Economy Sectors in 2010, %

“In your opinion, in what areas/business regulatory authorities there is the largest number of bribing and corruption?”, % (2010)

Foreign Direct Investment, Net Inflows (% of GDP)

Data: World Bank

Gross Domestic Product 1990-2010

Data: World Bank

GDP per Capita (USD)

Data: World Bank

Average Salary in Belarus (USD)

Sources: National Statistical Committee of the Republic of Belarus (via Mojazarplata.by), Naviny.by, TUT.BY

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OCT 2011

DEC 2011

Structure of Personal Income

Private sector of economy: 2000-15-20%, 2011-30% (est.)

Data: BELSTAT

Thank you!Questions

Yury Zissere-mail: zisser@tutby.com

blog: www.zisser.by skype: zisser.by

twitter: @yzisser facebook: Yury Zisser

Read Belarusian news : www.tut.by