ELECTRONIC COMMUNICATIONS MARKET IN TURKEY MARKET DATA (2012 Q3)* * In the event of any discrepancy, the original report in Turkish shall prevail.
AGENDA Executive Summary Market Overview Market Data Fixed Mobile Broadband Internet Other Services 2
EXECUTIVE SUMMARY(MARKET OVERVIEW) There are 408 operators providing services in the market with 647 authorizations as of November 15th, 2012. Total net sales of Türk Telekom and mobile network operators approximately worth of 6,3 billion TL, while other operators total net sales approximately worth of 1,7 billion TL. Total investment of Türk Telekom and mobile network operators is 880,6 million TL. Total investment of other operators has been realized as 213 million TL in the first quarter, 483 million TL in the second quarter and 473 million TL in the third quarter. Mobile traffic volume is 44,1 billion minutes and fixed traffic volume is4,5billionminutesinthethirdquarterof2012. 3
EXECUTIVE SUMMARY(FIXED MARKET) There are 14 million fixed telephony subscribers and penetration rate is 18,7%. However, considering the fact that average household size is around 3,76 in Turkey, it can be concluded that fixed telephony services reach to a significant proportion of Turkish citizens. Number of Carrier Pre-Selection (CPS) users is 397.704, while the number of users having call-by-call carrier selection services is 185.532. Number of users having services from alternative operators by using other methods is 383.039. Total number of calling cards sold is 3.826.654. Proportion of PSTN revenues within total revenues of Türk Telekom is 57,85%, while the proportion of access revenues is 32,86%. On-net traffic/total traffic ratio for Türk Telekom is 82,88%. In addition to this, proportion of traffic to mobile networks is 14% of total traffic. 4
EXECUTIVE SUMMARY(FIXED MARKET) Market share of alternative operators for local calls is 10,06%, while TürkTelekomhasamarketshareof89,94%. Market share of alternative operators for national calls is 19,16%, whiletürktelekomhasamarketshareof80,84%. Market share of alternative operators for calls to mobile networks is 43,31%, while Türk Telekom has a market share of 56,69%. Market share of alternative operators for international calls is 39,71%, while Türk Telekom has a market share of 60,29%. Market share of alternative operators for international calls terminated on fixed network is 63,42%, while Türk Telekom has a market share of 36,58%. 5
EXECUTIVE SUMMARY(FIXED MARKET) Market share of alternative operators for international calls terminated on mobile networks is 72,40%, while Türk Telekom has a market share of 27,60%. Market share of alternative operators for total traffic originated on the fixed network is 19,65%, while Türk Telekom has a market share of80,35%. Germany is the most frequently communicated country from fixed network(outgoing and incoming). FixedMinutesofUsage(MoU)is190,97. TürkTelekom sarpuis22,62tl. 6
EXECUTIVE SUMMARY(BROADBAND INTERNET) The number of broadband subscribers, which was 6 million in 2008, is approximately 19,3 million. Number of internet subscribers in Turkey increased by 5,6% as compared to the previous quarter thanks to the increase in number of fibre, cable and especially mobile internet subscribers. Annual growth rate of total number of internet subscribers has reached to 50,3%. Number of xdsl subscribers, which had increased until the third quarter of 2011, started to decline and realized as 6,6 million. Number of mobile broadband subscribers (computer and mobile handset) is around 11,6 million. 7
EXECUTIVE SUMMARY(BROADBAND INTERNET) Number of cable internet subscribers reached to 492.633. Nearly 80% of fixed broadband subscribers in Turkey prefer offers providing up-to-8 Mbps download speeds. 65,5% of users having mobile internet from computer have a data usage of 100 Mb and above. 32% of subscribers are within the 0-50 Mb interval. 8
EXECUTIVE SUMMARY(MOBILE MARKET) There are 67,16 million mobile subscribers corresponding to 89,9% penetration rate. Mobile penetration rate exceeds 100% when 0-9 year s old population are excluded. Number of 3G subscribers has reached to 40,3 million. Turkcell has 52,34%, Vodafone has 28% and Avea has 19,66% market share according to the number of subscribers. Nearly 62% of total mobile subscribers are pre-paid users. 8,3% of total mobile subscribers are corporate subcribers while the rest are individuals. Churnratesare2,26%forTurkcell,2,88%forVodafoneand3,50%forAvea. 9
EXECUTIVE SUMMARY(MOBILE MARKET) As of November 15th, 2012 total number of ported numbers exceeded 49 million. Germany is the most frequently communicated country from mobile networks(outgoing and incoming). Total Number of SMS is around 46,2 billion and number of MMS is 78,3 million. With respect to revenues, market share of Turkcell is 50,97% while market shares of Vodafone and Avea are 28,87% and 20,16%, respectively. 10
EXECUTIVE SUMMARY(MOBILE MARKET) Voice revenues make up 66,9% of Turkcell s total revenues, 69,28% of Avea s and 70,12% of Vodafone s. SMS+MMS revenues make up 10,41% of Turkcell s revenue and corresponding figures are 10,22% for Avea and 13,98% for Vodafone. Data revenues make up 11,75% for Vodafone, 17,03% for Avea and 15,13% for Turkcell. ARPU is 21,97 TL for Turkcell, 22,30 TL for Vodafone and 22,57 TL for Avea. As of September 2012, Turkcell s MoU is 251 minutes, Vodafone s MoU is 343 minutes and Aveas s MoU is 356 minutes. Overall MoU rateforturkeyis299minutesfor2012q3. 11
EXECUTIVE SUMMARY(OTHER OPERATORS) Alternative operators have a fibre optic length of 41.645 km, while Türk Telekom has 163.670 km of fiber optic infrastructure. Nearly 122.399 km of this infrastructure is used for backbone and the remaining is used for access. Total number of subscribers of infrastructure operators is 30.469. Total revenue of infrastructure operators is around 156 million TL. TURKSAT, providing cable broadcasting services, has 1.248.231 cable TV subscribers and has 515.654 digital cable TV subscribers. Number of subscribers having GMPCS mobile telephony services is 6.266 and corresponding revenue is approximately 4,02 million TL. 12
EXECUTIVE SUMMARY(OTHER OPERATORS) Satellite communication operators provide services such as international internet connections, video conference and point-topoint international satellite data circuits, to 11.442 subscribers. Total revenue generated from these services is approximately 44,9 million TL. Total number of calls for directory services is 14.923.311 and the corresponding call time is 22.295.482 minutes. Total revenue of DQ operators is around 22,1 million TL. Number of subscribers having PMR/PAMR services is 1.709; number ofusersis47.077andthetotalrevenueis2,54milliontl. 13
MARKET OVERVIEW Authorization Type Authorization Agreement Concession Agreement Authorized by Notification Authorized by Right of Use Number of Authorizations Based on Authorization Type (As of Nov. 15, 2012) Services Number of Authorizations Satellite and Cable TV Services 1 GSM and IMT-2000/UMTS Services 3 Several Telecommunication Services 1 Satellite Telecommunication Services 28 Satellite Platform Services 4 Infrastructure Operation Services 74 Internet Service Providers 175 Fixed Telephony Services 46 Cable TV Services 15 GMPCS Mobile Telephony Services 5 GSM 1800 Services on Air Vehicles 1 Mobile Virtual Network Operator Services 35 GMPCS Mobile Telephony Services 2 PMR/PAMR Services 72 Infrastructure Operation Services 5 Fixed Telephony Services 159 Directory Enquiry Services 12 Mobile Virtual Network Operator Services 9 TOTAL 647 14
MARKET OVERVIEW Net Sales of TürkTelekom and Mobile Operators*, 2008 2009 2010 2011 Türk Telekom 7.734.891.747 7.700.260.858 7.340.362.030 7.374.599.666 Turkcell 7.875.874.606 8.025.025.237 7.991.150.227 8.332.040.983 Vodafone 2.778.218.000 2.584.989.000 3.349.822.000 3.741.607.933 Avea 1.973.025.289 2.406.805.292 2.497.421.759 2.906.743.653 TOTAL 20.362.009.642 20.717.080.387 21.178.756.016 22.354.992.235 * Based on the income statements of operators notified to ICTA. Net Profitof TürkTelekom and Mobile Operators*, 2008 2009 2010 2011 Türk Telekom 2.610.791.956 2.746.613.306 2.956.000.797 2.468.971.871 Turkcell 2.777.908.000 2.237.697.000 2.154.605.000 2.262.195.067 Vodafone -582.206.309-1.397.657.291-239.277.770-696.907.047 Avea -514.343.382-1.240.086.183-962.938.607-1.054.556.808 * Based on the income statements of operators notified to ICTA. 15
MARKET OVERVIEW Net Sales of Other Operators*, Net Sales of Türk Telekom and Mobile Operators*, 2012 Q1 2012 Q2 2012 Q3 Türk Telekom 1.801.121.668 1.820.043.711 1.802.634.925 Turkcell 1.984.227.414 2.149.093.949 2.300.105.446 Vodafone 1.103.364.990 1.199.722.784 1.302.586.702 Avea 787.017.463 856.321.702 909.606.665 TOTAL 5.675.731.536 6.025.182.146 6.314.933.738 * Based on the income statements of operators notified to ICTA. Operator Type 2012 Q1 2012 Q2 2012 Q3 Internet Service Providers 1.007.755.876 1.008.853.700 1.121.024.197 Fixed Telephony 145.348.092 160.174.124 165.216.023 Infrastructure 111.569.940 132.145.985 156.049.860 Satellite Platform 33.977.980 51.782.039 56.806.320 Satellite Telecommunication 38.068.203 40.908.955 44.873.785 Directory Information 19.488.407 20.710.504 21.892.199 Cable TV 76.553.157 81.979.469 78.045.627 GMPCS 3.765.418 3.743.585 4.015.104 PMR/PMAR 1.721.151 1.929.655 2.536.909 TOTAL 1.438.248.224 1.502.228.015 1.650.460.024 16 * Based on the income statements of operators notified to ICTA.
MARKET OVERVIEW Annual Investment of Türk Telekom and Mobile Operators, 2008 2009 2010 2011 Türk Telekom 1.375.310.179 1.214.950.018 1.099.376.770 1.371.661.333 Turkcell 587.380.000 1.823.087.000 779.323.342 894.292.038 Vodafone 446.725.928 1.556.997.971 1.043.320.000 799.790.152 Avea 958.236.891 1.208.795.929 838.780.574 799.871.483 TOTAL 3.367.652.998 5.803.830.918 3.760.800.686 3.865.615.006 Quarterly Investment of Türk Telekom and Mobile Operators, 2012 Q1 2012 Q2 2012 Q3 Türk Telekom 232.399.025 445.353.927 377.112.985 Turkcell 160.000.762 166.538.135 221.046.503 Vodafone 232.241.513 72.443.449 136.431.221 Avea 135.360.448 134.255.772 145.988.615 TOTAL 760.001.748 818.591.283 880.579.324 Quarterly Investment of Other Operators, 2012 Q1 2012 Q2 2012 Q3 Other Operators 213.093.835 483.481.686 473.309.975 17
MARKET OVERVIEW 180 160 140 120 100 80 60 40 20 0 Annual Voice Traffic Volume, Billion Minutes 168,9 149,5 21,8 132,2 23,6 103,7 23,9 85,5 90,4 86,6 90,9 28,8 33,2 147,1 53,1 38,5 125,8 65,2 108,2 74,9 37,3 48,1 57,7 20,3 2004 2005 2006 2007 2008 2009 2010 2011 Mobile Fixed Total Quarterly Voice Traffic Volume, Billion Minutes 60,0 50,0 40,0 30,0 20,0 10,0 0,0 48,5 48,6 42,9 43,3 43,8 44,4 5,0 4,5 38,9 5,7 5,1 5,3 5,3 5,6 33,3 37,2 38,2 38,5 39,1 43,5 44,1 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Mobile Fixed Total 18
MARKET OVERVIEW Total Traffic Distribution, Million Minutes 2012-3 41.476 2.583 3.4531.024 2012-2 41.055 2.4364.038993 2012-1 36.770 2.308 4.362 948 2011-4 36.203 2.282 4.341 991 2011-3 35.860 2.317 4.1171.024 2011-2 35.023 2.187 4.735 968 2011-1 31.209 2.061 4.776 850 Total Traffic Distribution, % 0% 20% 40% 60% 80% 100% mobile to mobile mobile to other net. fixed to fixed fixed to other net. 2012-3 85,5 5,3 7,1 2,1 2012-2 84,6 5,0 8,3 2,0 2012-1 82,8 5,2 9,8 2,1 2011-4 82,6 5,2 9,9 2,3 2011-3 82,8 5,3 9,5 2,4 2011-2 81,6 5,1 11,0 2,3 2011-1 80,2 5,3 12,3 2,2 19 0% 20% 40% 60% 80% 100% Mobile to mobile Mobile to other net. fixed to fixed fixed to other net.
FIXED MARKET Fixed-Line Subscribers and Penetration Rate Million 18 16 14 12 10 8 6 4 2 17,49 24,5 16,53 22,8 16,20 22,3 15,21 20,6 14,83 19,8 14,47 19,4 14,01 18,7 28 24 20 16 12 8 4 (%) 0 0 2008 2009 2010 2011 2012-1 2012-2 2012-3 # of Subscribers Penetration 20
FIXED MARKET Number of Users of FTS Providers, 2012 Q3 Market Shares of FTS Providers Basedon # of Users, 2012 Q3 Alternative Operators Market Share (%) Method Number of Users Carrier Pre-selection 397.704 Call-by-call Carrier Selection 185.532 Other access methods 383.039 TOTAL 966.275 Millenicom 26,24 Superonline 19,64 Bizfonik 16,38 Turknet 12,10 İş Net 9,52 Vodafone Alternatif 8,39 TTM Telekom 3,35 Net GSM 1,83 Vodafone Net 1,64 21 Roitel 0,24 Others 0,66
FIXED MARKET Breakdown of Annual Fixed Revenues of Türk Telekom, % 2011 61,37 27,36 6,52 4,75 2010 60,50 27,14 6,90 5,46 2009 61,37 24,29 7,57 6,76 2008 66,19 21,25 7,02 5,55 Breakdown of Quarterly Fixed Revenues of Türk Telekom, % 0% 20% 40% 60% 80% 100% PSTN Access Leased Lines Other 2012-3 57,85 32,86 5,15 4,07 2012-2 58,84 31,44 5,943,72 2012-1 59,35 31,02 5,50 4,06 2011-4 61,43 28,38 6,28 3,86 2011-3 61,51 27,93 6,60 3,92 2011-2 61,54 26,31 6,45 3,62 2011-1 61,00 26,87 6,73 3,50 22 0% 20% 40% 60% 80% 100% PSTN Access Leased Lines Interconnection Other
FIXED MARKET Breakdown of Türk Telekom s Traffic, % 2012-3 82,88 1,68 14,08 1,32 2012-2 84,92 1,42 12,64 0,05 0,98 2012-1 86,20 1,24 11,71 0,05 0,79 2011-4 84,95 2,27 12,16 0,060,55 2011-3 83,85 2,52 13,16 0,090,37 2011-2 86,01 2,00 11,66 0,090,25 2011-1 88,24 1,21 10,32 0,11 0,11 60% 65% 70% 75% 80% 85% 90% 95% 100% Onnet International Mobile Dial-up FTS Breakdown of Türk Telekom s Traffic, Million Minutes 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 On-net 4.463 4.377 3.752 3.918 3.864 3.582 2.980 International 64 102 113 105 56 60 61 Mobile 373 593 589 561 525 533 506 Dial-up 6 5 4 3 2 2 1 FTS 6 13 17 26 35 42 48 Total 4.911 5.089 4.475 4.612 4.447 4.219 3.596 23
FIXED MARKET Market Shares Based on Voice Revenues, % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 14 22 20 27 30 33 85 86 78 80 73 70 67 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Call Origination Market Shares from Fixed Networks, % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9 11 13 14 16 16 20 91 89 87 86 84 84 80 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS TT FTS * Minute-based voicerevenuesof TT andnet salesof FTS providersare considered. 24
FIXED MARKET FTS and TT Comparison for Local Calls, % 100 80 94,62 94,32 92,85 92,22 91,70 91,77 89,94 % 60 40 20 0 5,38 5,68 7,15 7,78 8,30 8,23 10,06 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 TT FTS FTS and TT Comparison for National Calls, % 100 80 60 89,16 87,92 87,92 85,34 82,46 83,56 80,84 % 40 20 0 10,84 12,08 12,08 14,66 17,54 16,44 19,16 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS * Market Sharesare basedon traffic volume. 25
FIXED MARKET FTS and TT Comparison for F2M Calls, % * Market Sharesare basedon traffic 40 volume. 29,32 % 80 70,68 73,19 68,84 67,46 60 20 29,32 31,16 32,54 26,81 62,22 60,64 37,78 39,36 56,69 43,31 % FTS and TT Comparison for International Calls, % 80 60 40 20 0 64,97 35,03 71,40 70,56 69,75 28,60 29,44 30,25 63,63 36,37 0 60,53 60,29 39,47 39,71 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS Most Frequently Communicated Countries from Türk Telekom Highest Rate of Highest Rate of Traffic Traffic Sent to Received From Germany Russia UK Turkmenistan TRNC Germany Italy France Netherlands UK 26
FIXED MARKET FTS and TT Comparison for International Incoming Calls Terminated on Fixed Network, % % 80 70 60 50 40 30 20 10 0 69,27 67,44 59,16 57,03 59,62 59,17 63,42 40,84 42,97 40,38 40,83 30,73 32,56 36,58 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS FTS and TT Comparison for International Incoming Calls Terminated on Mobile Networks, % 100 80 60 77,49 74,14 71,61 75,78 77,85 77,58 72,40 * Market Sharesare basedon traffic volume. % 40 22,51 25,86 28,39 24,22 22,15 22,42 27,60 20 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 TT FTS 27
FIXED MARKET Fixed MoU, Minutes 250 200 181,44 204,92 190,43 198,26 200,93 199,30 190,97 150 100 50 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 25 20 ARPU, 22,10 22,13 22,07 21,89 22,30 22,42 22,62 15 10 5 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 28
BROADBAND INTERNET Number of Broadband Internet Subscribers* 25 Million 20 15 10 5 0 19,35 14,05 8,56 5,99 6,78 4,61 2,86 1,59 0,02 0,51 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sep. 2012 * Fixed, mobile, cable modem, fiber etc. all means of broadband access are included. 29
BROADBAND INTERNET Number of Internet Subscriptions 2011 Q3 2012 Q2 2012 Q3 Quarterly Growth Rate (2012Q2 2012 Q3) Annual Growth Rate (2011Q3 2012 Q3) xdsl 6.792.013 6.632.661 6.602.030-0,5% -2,8% Mobile Internet from Computer Mobile Internet from Mobile Handset 1.317.155 1.795.592 1.875.653 4,5% 42,4% 4.007.546 8.791.994 9.685.926 10,2% 141,7% Cable Internet 407.502 485.531 492.765 1,5% 20,9% Fiber 220.777 469.668 548.493 16,8% 148,4% Other 129.858 140.299 142.753 1,7% 9,9% TOTAL 12.874.851 18.315.745 19.347.620 5,6% 50,3% 30
BROADBAND INTERNET Data on 3G Subscribers 2011 Q3 2012 Q2 2012 Q3 # of 3G Subscribers 28.608.069 37.671.504 40.251.883 Mobile Internet from Computer 1.317.155 1.859.250 1.875.653 Mobile Internet from Mobile Handset 4.007.546 8.790.698 9.685.926 Mobil Internet Usage, Gbyte 8.766.845 15.403.589 19.064.737 Post-Paid and Pre-Paid Mobile Broadband Internet Subscriptions, 2012 Q3, Thousands 7000 6000 5000 4000 3000 2000 1000 0 6.640 4.921 Post-Paid Pre-Paid 31
BROADBAND INTERNET Breakdown of Other Means of Internet 2011 Q3 2012 Q2 2012 Q3 Dial Up 69.419 61.550 60.545 ISDN BA/PA 15.310 15.176 15.069 Satellite Communications 10.749 11.223 11.442 Metro Ethernet 4.817 6.967 7.924 PLC, BPL 9.019 41.141 41.987 Frame Relay 188 143 136 ATM 15 65 65 Other 20.341 4.034 5.585 TOTAL 129.858 140.299 142.753 ISP Market SharesBasedon # of Subscribers, 2012 Q3* Operator % TTNet 82,10 Superonline 8,05 Doğan TV Digital 4,42 Vodafone Net 1,77 Millenicom 1,48 Turknet 1,40 Metronet 0,59 Vodafone Alternatif 0,03 Grid 0,03 Telnet 0,03 Other 0,10 * Cable internet is not included. 32
BROADBAND INTERNET Distribution of Fixed Broadband Subscribers according to Technology and Operator, % 2012-3 74,9 10,6 6,4 7,1 1,1 2012-2 76,3 10,2 6,3 6,1 1,0 2012-1 78,2 9,5 6,3 4,9 1,0 2011-4 80,2 9,0 6,1 3,5 1,2 2011-3 82,0 8,8 5,4 3,0 0,8 2011-2 82,9 8,7 5,0 2,6 0,8 2011-1 84,6 8,0 4,42,3 0,7 2010-4 85,8 7,6 3,92,2 0,6 2010-3 87,5 7,1 3,2 1,6 0,6 2010-2 2010-1 88,2 89,0 7,0 2,81,5 0,5 2,7 6,7 1,1 0,5 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 xdsl TTNet xdsl Other IPSs Cable Fibre Other 33
BROADBAND INTERNET Connection Speeds for Fixed Broadband, 2012 Q3* %1,0 %80,3 %0,8 %8,8 %8,2 %0,9 Mobile Internet Usage from Computer, 2012 Q3, % 4G-8G 12,44 1 Gb-4Gb 31,35 >8G 3,31 0-50 Mb 32,38 Mobile Internet Usagefrom Mobile Handsets, 2012 Q3, % 4Gb-8Gb 0,48 250Mb-1 Gb 14,11 >8Gb 0,08 100-250 Mb 4,34 50-100 Mb 2,07 512 Kbps 1 Mbps 2 Mbps 4 Mbps 8 Mbps Other ( > 8 Mbps) * Cable internet is not included. 250Mb-1 Gb 19,45 1 Gb-4Gb 7,26 0-5 Mb 34,99 100-250 Mb 14,21 50-100 Mb 8,79 5-10 Mb 2,88 10-25 Mb 5,65 25-50 Mb 6,20 34
MOBILE MARKET # of Mobile Subscribers and Penetration Rate Million 80 70 60 50 40 30 20 10 0 92,1% 86,5% 85,1% 42,4 65,8 55,7 19,4 7,1 88,6% 88,0% 88,5% 89,9% 33,9 30,8 28,5 26,9 31,4 34,9 37,7 40,3 100% 80% 60% 40% 20% 0% Penetration, % 2008 2009 2010 2011 2012-1 2012-2 2012-3 # of 2G Subscribers # of 3G Subscribers Mobile Penetration 80 70 60 50 40 30 20 10 0 Total Number of Mobile Subscriptions, Million 61,72 63,80 64,79 65,32 65,75 66,14 67,17 33,05 34,06 34,43 34,53 34,52 34,71 35,15 16,84 17,51 17,84 18,03 18,30 18,43 18,81 11,82 12,23 12,53 12,76 12,93 13,00 13,21 35 2011-1 2011-2 2011-3 2011-4 2012-1 Avea Vodafone Turkcell Total 2012-2 2012-3
MOBILE MARKET 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% Churn Rates of Mobile Operators, % 4,49% 4,60% 4,28% 4,32% 4,01% 3,99% 3,8% 3,85% 3,6% 3,5% 3,50% 3,3% 3,2% 3,31% 3,7% 3,13% 2,70% 2,88% 2,83% 2,79% 2,83% 2,86% 2,59% 2,59% 2,53% 2,32% 2,26% Jan. 12 Feb. 12 March 12 April 2012 May.12 June 12 July 12 August 12 Sep. 12 Avea Vodafone Turkcell Distribution of Individual and Corporate Pre-Paid and Post-Paid Mobile Subscriptions, % Mobile Subscribers, % 100% 8,3% 80% 32,7 33,2 33,9 35,3 36,4 37,4 37,9 60% % 40% 67,3 66,8 66,1 64,7 63,6 62,6 62,1 91,7% Individual Subscribers Corporate Subscribers 20% 0% 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Post-Paid Pre-Paid 36
MOBILE MARKET Net Gaining Subscriber Numbers, Thousand 300 200 100 253 164 203 143 112 56 116 176 134 57 31 124 100 Thousand 0-100 -200-300 -400-500 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 -56-88 -147-171 -224-255 -310-417 Turkcell Vodafone Avea 37
MOBILE MARKET Market Shares according to # of Subscribers, % 100% 80% 60% 19,15 19,17 19,33 19,54 19,67 19,66 19,66 27,29 27,44 27,53 27,59 27,83 27,86 28,00 40% 20% 0% 53,55 53,38 53,13 52,87 52,50 52,48 52,34 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Avea Vodafone Turkcell Market Shares according to Traffic Volume, % Market Shares according to Revenue, % 100% 100% 22,65 22,97 23,15 23,43 23,55 22,85 22,57 20,14 19,93 19,59 20,17 20,31 20,36 20,16 80% 80% 60% 30,73 31,20 31,21 31,50 32,14 32,18 31,78 60% 27,14 28,21 28,25 28,52 28,48 28,53 28,87 40% 40% 20% 46,61 45,83 45,64 45,07 44,31 44,96 45,65 20% 52,72 51,86 52,16 51,31 51,21 51,11 50,97 0% 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Avea Vodafone Turkcell 0% 38 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Turkcell Vodafone Avea
MOBILE MARKET Breakdown of Mobile Traffic, Million Minutes 2012-3 14.086 27.390 2.372 195 2012-2 13.194 27.861 2.243 193 2012-1 11.253 25.518 2.132 176 2011-4 10.735 25.468 2.101 180 2011-3 10.431 25.416 2.143 185 2011-2 9.615 25.408 2.024163 2011-1 7.858 23.351 1.917 144 2012-3 Breakdown of Mobile Traffic, % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other Mobile Networks On-net Fixed Networks International+DQ Services+Satellite+Other 31,98 62,19 5,380,44 2012-2 84,41 178,26 14,35 1,24 2012-1 82,98 188,17 15,721,30 2011-4 82,47 195,66 16,151,38 2011-3 81,75 199,20 16,801,45 2011-2 81,47 215,28 17,151,38 2011-1 79,22 235,42 19,331,45 39 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other Mobile Networks On-net Fixed Networks International+DQ Services+Satellite+Other
MOBILE MARKET Most Frequently Communicated Countries from Mobile Networks, 2012 Q3 Highest Rate of Traffic Sent to Germany Russia UK Bulgaria France Highest Rate of Traffic Received From Germany Russia UK France Saudi Arabia Breakdown of Mobile Revenue, % 2012(I+II+III) 74,4 8,7 10,7 6,2 2011 77,0 11,6 7,3 4,1 2010 78,3 10,0 4,4 7,4 2009 80,7 9,1 2,3 7,9 2008 80,9 9,3 1,3 8,5 0% 20% 40% 60% 80% 100% 40 Voice SMS+MMS Data Value Added Services
MOBILE MARKET 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 Mobile SMS and Mobile MMS, Million 40.241 40.078 41.378 39.722 40.381 41.763 46.166 20,8 23,0 37,8 73,3 71,0 73,2 78,3 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 SMS MMS # of MMS, Million # of SMS, Billion 100% 80% 2,72 3,33 3,32 2,05 2,56 6,28 3,06 7,36 9,63 9,86 9,96 8,21 6,28 6,98 100% 80% 10,42 10,39 10,51 9,69 9,61 10,13 10,62 60% 60% 11,61 11,87 12,78 13,77 14,60 15,08 16,78 40% 20% 0% 62,60 59,33 60,77 62,06 26,26 11,83 12,96 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Avea Vodafone Turkcell 40% 20% 0% 18,21 17,83 18,08 16,26 16,17 16,55 18,77 41 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Avea Vodafone Turkcell
MOBILE MARKET 25 Mobile ARPU, 20 15 10 18,4 18,1 19,1 19,6 19,9 20,5 21,1 21,5 21,3 19,70 19,77 20,50 19,19 19,20 19,86 20,68 20,91 21,30 21,97 22,30 22,57 5 400 350 300 250 200 MoU values of Mobile Operators, Minutes 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Turkcell Vodafone Avea 361 354 350 344 356 337 334 319 343 304 355 350 331 349 343 305 291 327 258 258 258 255 251 234 236 220 210 150 100 50 0 Jan.12 Feb.12 March 12 April 12 May.12 June 12 July 12 August 12 Sep. 12 Turkcell Vodafone Avea 42
MOBILE MARKET Post-Paid Mobile ARPU, 16 14 12 10 Pre-Paid Mobile ARPU, 9,8 11,9 10,9 11,2 13,3 10,9 12,16 14,50 11,15 11,00 12,03 11,09 10,13 11,5 10,92 11,31 12,7 12,1 12,56 13,96 13,03 45 40 8 6 4 2 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Turkcell Vodafone Avea 43 37,9 35,5 30,2 38,2 37 31,8 40,40 38,40 32,56 37,50 37,56 31,70 36,52 35,7 30,6 37,7 37,16 31,84 38,38 38,08 32,65 35 30 25 20 15 10 5 0 2011-1 2011-2 2011-3 2011-4 2012-1 2012-2 2012-3 Turkcell Vodafone Avea
OTHER SERVICES # of Subscribers and Revenue of Alternative Network Operators Period # of Subscribers Income, 2012 Q1 24.912 111.569.940 2012 Q2 25.849 132.145.985 2012 Q3 30.469 156.049.860 Market Shares of Alternative Network Operators, 2012 Q3 Operators Market Share Basedon # of Subscribers(%) Operators Market Share basedon Net Sales(%) Superonline 61,07 Superonline 39,00 Vodafone Alternatif 9,95 Kule Hizmetleri 16,03 Telnet 8,81 Vodafone Alternatif 9,46 Vodafone Net 5,34 İş Net 9,03 Vitali Net 3,66 Metronet 7,15 T-Systems 3,43 BT Bilişim 5,87 Equant Istanbul 3,08 MTCTR Memorex 3,84 Grid 1,58 T-Systems 2,69 Turknet 1,20 AT&T Global 1,79 AT&T Global 0,57 Turknet 1,72 İş Net 0,32 Telnet 1,16 BT Telekom 0,29 Equant İstanbul 1,05 Oyak 0,27 Mednautilus 0,55 Other 0,43 Other 0,67 TOTAL 100.00 TOTAL 100.00 Fiber Optic Networks of Alternative Operators Total Length Owned Total Length Leased Total Backbone Length Total Access Length Total Length (km) 2012 Q1 33.650 5.895 32.238 7.307 39.545 2012 Q2 34.678 5.913 32.564 8.027 40.591 2012 Q3 35.717 5.928 33.314 8.330 41.645 44
OTHER SERVICES Satellite Communications Services Period # of Subscribers Revenue, 2012 Q1 10.877 38.068.203 2012 Q2 11.223 40.908.955 2012 Q3 11.442 44.873.785 Market Share of Satellite Communication Operators based on # of Subscribers, 2012 Q3 Cable Platform Services Operator % Türksat 49,72 İş Net 22,93 Deksarnet 16,03 BT Telekom 6,21 Other 5,11 Period # of cabletv Subscribers # of Cable Telephony Subscribers # of IPTV Subscribers 2012 Q1 1.274.355 72.949 51.485 2012 Q2 1.260.378 70.159 96.260 2012 Q3 1.248.640 66.417 119.158 45 * Cable TV services are provided by Turksat.
OTHER SERVICES Period # of Calls Directory Information Services Call Duration (Minutes) Total # of Enquiries Revenue, 2012 Q1 14.023.844 19.538.608 36.061.731 19.488.407 2012 Q2 14.233.019 21.205.681 37.535.928 20.710.504 2012 Q3 14.923.311 22.295.482 39.894.543 22.109.980 Market Share of Directory Information Operators based on Number of Calls, 2012 Q3 Operator % Average Call Duration(Min.) BN Telekom (11880-11810 -11844) 65,70 1,55 AssisTT(11818-11820) 27,96 1,22 Plus Telekom (11870 11890-11899) 2,91 3,03 Vastech(11833) 1,51 1,82 Infoline(11824) 1,35 0,82 Rehberlik Hizmetleri Servisi (11819-11850) 0,31 1,27 Mega (11881-11883) 0,25 1,20 Callturk(11858) 0,01 1,67 46
OTHER SERVICES GMPCS Services Period # of Subscribers Revenue, 2012 Q1 5.326 3.765.418 2012 Q2 5.373 3.743.584 2012 Q3 6.266 4.015.104 Period PMR/PAMR Services # of Subscribers # of Users Revenue, 2012 Q1 1.815 41.211 1.721.153 2012 Q2 1.741 40.652 1.929.654 2012 Q3 1.709 47.077 2.536.909 Market Share of GMPCS Operators Based on # of subscribers, % Operator 2012 Q1 2012 Q2 2012 Q3 Teknomobil 54,76 55,05 59,96 Globalstar 43,24 42,90 38,24 Mobilkom 2,00 2,05 1,80 47
ELECTRONIC COMMUNICATIONS MARKET IN TURKEY MARKET DATA (2012 Q3)* * In the event of any discrepancy, the original report in Turkish shall prevail.