20 Ağu 2008

WiMax to cover 1 billion by 2012, says Intel

WiMax to cover 1 billion by 2012, says Intel

By Joe Fay

IDF Craig Barrett banged the drum for WiMAX in the opening keynote of IDF today. But only quietly, and not for very long. In a speech that dwelled on socio-economic issues more than hard technology, Barrett slipped out a couple of predictions for takeup on the to-date unloved mobile data standard. “We should see 50 million people reached by WiMAX by the end of this year,” said Barrett. By 2012, he said, the technology should have reached 1 billion people. Barrett seemed to suggest a good proportion of these will be in developing countries. The Satyam-backed HMRI telemedicince project in Andhra Pradesh in India is using the technology to reach villages out of the reach of existing infrastructure. And he suggested there wasn’t a leader in Africa “who doesn’t know how to spell WiMAX.” Which simply emphasises the technology’s potential for filling in the gaps in telecoms' networks, not that it is the preferred comms standard for dictatorships, precarious democracies and failed states.

WiMax pricing comparison, South Africa

WiMax pricing comparison, South Africa

We compare Telkom and iBurst’s WiMax pricing

iBurst and Vodacom Business are set to commercially launch their WiMax services in the coming weeks. Both these companies will be targeting small and medium size business with their WiMax offerings, punting them as ADSL and Diginet replacement services. This raises the question as to how iBurst’s WiMax pricing compares with the pricing from Telkom for a similar service. The table below provides a basic pricing comparison between iBurst WiMax and Telkom WiMax, in South Africa. It should be noted that Telkom only has a 512Kbps WiMax offering which is why no 1Mbps comparison was done. Also, standard ISP rates were applied for bandwidth charges for Telkom’s WiMax service.

512 Kbps WiMax Pricing Comparison

iBurst

Telkom

5 GB Shaped

855 ZAR (110 USD)

530 ZAR (68 USD)

10 GB Shaped

1197 ZAR (154 USD)

730 ZAR (94 USD)

5 GB Unshaped

1140 ZAR (147 USD)

739 ZAR (95 USD)

10 GB Unshaped

1767 ZAR (227 USD)

1239 ZAR (159 USD)

ZTE to deploy Colombia's first WiMAX network

ZTE to deploy Colombia's first WiMAX network

China's ZTE Corp said it has sealed an exclusive deal with Emcali to build Colombia's first WiMAX (Worldwide Interoperability for Microwave Access) 16e network. Shenzhen-based ZTE will provide Emcali with core network and wireless access equipment as well as terminals and base stations for the 3.5G WiMAX project. The Colombian government awarded WiMAX licences to Emcali two years ago, and the company is required to make the network commercially available by the end of 2008, ZTE said in a statement. The statement did not disclose financial terms of the agreement.

19 Ağu 2008

Turkcell to Bring iPhone 3G To Turkey In 2008

Turkcell to Bring iPhone 3G To Turkey In 2008

Turkcell, the leading mobile phone operator in Turkey has signed a deal with Apple to bring the iPhone 3G to Turkey before the end of the year. Turkcell has signed an agreement with Apple, giving them the right to sell the iPhone 3G in Turkey. There has yet to be any details released in regards to an official release date or pricing, but it rumored to be very similar to deals set up in Europe. Apple released the iPhone 3G in over 20 countries around the world already since the launch over a month ago. Turkcell customers will now have the chance to get an iPhone 3G in a matter of months.

18 Ağu 2008

VoIP service revenue up 52 percent in 2007

VoIP service revenue up 52 percent in 2007

Infonetics Research reports that worldwide revenue from hosted VoIP and managed IP PBX services jumped 52 percent to $24 billion in 2007 after surging 66 percent in 2006, and is likely to grow in the strong double-digits through at least 2011.

Infonetics' report, VoIP Services and Subscribers, shows that hosted VoIP services continue to outpace managed IP PBX services by far, with residential services fueling market growth.

"While VoIP services are being embraced by consumers worldwide, businesses have been comparatively slower in their adoption due to various roadblocks. This is about to change, though, as technical issues are resolved. For example, many PBX manufacturers have already added SIP trunking interfaces to their equipment, and more recently, they've greatly expanded the list of certified service providers, and that's going to fuel the growth in SIP trunking services. These kinds of developments will boost the overall VoIP business services segment for years to come," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

Other report highlights:

* The number of worldwide residential/SOHO VoIP subscribers grew 60% between 2006 and 2007, to over 75 million, with the largest gains in North America and EMEA (Europe, the Middle East, and Africa), although Asia Pacific still leads.
* Asia Pacific, which had been leading the VoIP scene for a few years, is now neck and neck with EMEA and North America in 2007; EMEA will break away this year and lead the market at least through 2011.

* Business customer (vs. consumer) share of worldwide hosted VoIP service revenue will increase from 26 percent in 2007 to 41 percent in 2011.
* Comcast is North America's largest consumer VoIP service provider, with 20 percent subscriber market share, France Télécom leads in the EMEA region, Softbank leads in Asia Pacific, and Cableco and Vono Brazil are neck and neck in CALA.

17 Ağu 2008

UK reports massive rise in mobile broadband dongle sales

UK reports massive rise in mobile broadband dongle sales

A new report by Ofcom has concluded that Mobile broadband sales reached unexpected highs in June this year with subscriptions and one-off dongle purchases reaching around 133,000.

Research indicated that bundled laptop and mobile broadband devices are being favoured against desktop PCs in many households. Although two million people now use mobile broadband, only around a quarter use their devices whilst on the move – the rest simply connect when they are at home.

3G broadband modem has increased in popularity by an 18 per cent growth rate every month since February 2008. If this trend continues then around 300,000 mobile broadband devices would have been sold by December this year.

Operator interview - Dr Cebrail Taşkin, IPTV Program Leader, Türk Telekom

Operator interview - Dr Cebrail Taşkin, IPTV Program Leader, Türk Telekom

"According to our research, 49% of our customers want IPTV and they want to buy... we are planning to launch IPTV this year in the third quarter"

video of interview: http://www.iptv-news.com/content/view/2229/73/

In the last of our video interviews conducted with high-profile operators at this year's IPTV World Forum in London, we speak to Dr Cebrail Taşkin, IPTV Program Leader for Türk Telekom, about the company's plans to launch a commercial IPTV service this year in Turkey.

Due to the ongoing development of Türk Telekom's IPTV plans, we were requested to delay publishing this video, but can now reveal that the company plans to launch its service in the third quarter of this year, starting with a pilot service in the capital Ankara, and eventually offering broadcast TV, video on demand, catch-up TV and PVR services. Dr Taşkin also discusses companies shortlisted to supply equipment and services for the launch, as well as Türk Telekom's search to sign up a content partner to deliver the expertise needed by a broadcasting newcomer.

Nortel Expands Unified Communications Portfolio with Pingtel Acquisition

Nortel Expands Unified Communications Portfolio with Pingtel Acquisition

Canadian-based telecom equipment maker, Nortel Networks, has acquired Pingtel, an enterprise VoIP software business owned by Bluesocket Inc., in a move to improve its unified communications portfolio. “We believe that bringing Pingtel’s critical research and development capabilities in-house will enable us to further develop software-based solutions,” said Nortel’s general manager of Enterprise and SMB Communications, David Downing. “We expect that this will enable Nortel to accelerate the development of new IT-centric channels to market.” The deal will see Pingtel’s employees integrated into a Nortel location in Billerica, Massachusetts. Financial terms of the sale were not disclosed.

Vodafone Completes $900 Million Purchase of Ghana Telecom Stake

Vodafone Completes $900 Million Purchase of Ghana Telecom Stake

By Nasreen Seria

Vodafone Group Plc, the world's largest mobile-phone company, said it's completed the purchase of a 70 percent stake in Ghana's state-owned phone company. The completion of the $900 million acquisition in Ghana Telecommunications Co. follows approval of the transaction by Ghana's parliament on Aug. 14, Newbury, England-based Vodafone said in an e-mailed statement today. The government will retain a 30 percent holding. The deal values Ghana Telecom, which posted 2007 earnings before interest, taxes, depreciation and amortization of $42 million on sales of $290 million, at about $1.3 billion. The number of mobile subscribers in Ghana is growing at more than 55 percent a year and mobile penetration is around 35 percent, Vodafone has said.

Saudi Telecom signs 5-year deal with Man United

Saudi Telecom signs 5-year deal with Man United

Manchester United has signed a lucrative sponsorship deal with Saudi Telecom. The five-year deal with Saudi Arabia's biggest telecommunications company was announced at Old Trafford on Sunday ahead of United's season-opening home match against Newcastle. Details of the deal, which is reportedly worth 10 million pounds (US$18.6 million; €12.7 million), were to be announced at a news conference on Monday.

It is the European and English champion's biggest marketing deal outside of jersey sponsorship. Insurance group AIG pays 14 million pounds (US$27.4 million; euro21.3 million) annually for its branding to be emblazoned across United's jerseys. Saudi Telecom, whose adverts featured inside and outside Old Trafford on Sunday, will be able to use the United brand and players in advertising campaigns in Saudi Arabia.

Executives from the company were presented on the pitch before kickoff at Sunday's match. United negotiated a territory-specific sponsorship deal with Smirnoff Vodka in June for the right to use the club's imagery in China, India, Japan, Korea, Thailand and Vietnam from September.

15 Ağu 2008

VoIP Growing at 53% to $24 Billion

VoIP Growing at 53% to $24 Billion

The VoIP opportunity is still huge according to a new report from Infonetics Research. At a time when many industries are really hurting, hosted VoIP and managed IP PBX services grew 53% to $24 billion in 2007 after surging 66% in 2006.

Obviously much of this growth is as a result of PSTN replacement but it should be noted that once IP is in place, the potential to add services increases greatly. The great news is Infonetics anticipates growth in the strong double-digits until at least 2011.

Interestingly, IP communications boosts productivity and saves money at the same time. This makes it a great technology to invest in when times are good and times are bad.

Sadly, many companies get the deer in the headlights feeling when they see an economy slow and they sometimes stick with the status quo instead of making decisions which will save them money, boost performance and generate rapid ROI.

Interestingly I have noticed an increased focus on contact center and CRM solutions these past months which leads me to believe companies have finally figured out that if you serve your customers efficiently and well, you make more money.

Contrast this to the last slowdown in 2000 when companies decided to offshore their call centers to save money. This resulted in many cases with worse service and some companies were forced to bring their call centers back into the states.

I am very curious to see how this year shapes up in terms of IP communications growth. Internationally it is certainly on fire but in the US we need to see just how many companies were staring into those headlights.

13 Ağu 2008

China Unicom to Spend $14.6 Billion to Expand Network

China Unicom to Spend $14.6 Billion to Expand Network

China Unicom Ltd., the nation's second-biggest mobile-phone carrier, said it may spend as much as 100 billion yuan ($14.6 billion) to expand wireless networks as it seeks to narrow the gap with China Mobile Ltd.

The proposed investment covers spending in 2009 and 2010, according to a Unicom statement to the Hong Kong stock exchange today. The Beijing-based company said previously 2008 capital expenditure on its wireless network would be 18.7 billion yuan.

The increase will allow Unicom, whose market share is less than half China Mobile's, to add networks in rural areas and introduce third-generation services. Competition in the world's biggest phone market will intensify as carriers are now permitted to offer both fixed-line and wireless services following a government plan to reorganize the industry.

``Unicom needs to upgrade its networks to become more competitive,'' said Kelvin Ho, who rates the stock ``neutral'' at Nomura Holdings Inc. in Hong Kong. ``On a per-user basis, the spending announced by Unicom is lower than'' that indicated by China Telecom Corp., he said.

Under the government reorganization, the company will sell the smaller of its two mobile-phone businesses, based on code- division multiple access technology, to China Telecom. Unicom's bigger network, based on the global system for mobile communications, or GSM, standard, had 127.6 million customers at the end of June, compared with 43.2 million CDMA users.

Industry Revamp

China Telecom, the nation's biggest fixed-line carrier, said last month its parent will invest at least 80 billion yuan in the CDMA network in the next three years.

Three 3G licenses will be issued when the industry revamp is completed, the government said in May. As part of the government's reorganization proposal, Unicom will buy fixed-line carrier China Netcom Group Corp., and China Mobile's parent will buy China Tietong Telecommunications Corp.

Unicom expects to receive a license for 3G services, which allow faster downloads of music and video on mobile phones, when it completes the acquisition of China Netcom, according to today's statement. The stock-only transaction was valued at HK$187 billion ($24 billion) in June, when it was announced.

China Mobile had 414.6 million customers at the end of June, more than twice the combined total of Unicom's GSM and CDMA businesses.

Unicom shares fell 4.3 percent to close at HK$14.80 in Hong Kong trading, compared with a 1.5 percent decline in the city's benchmark Hang Seng Index.

11 Ağu 2008

Siemens exits Telecoms altogether

Siemens exits Telecoms altogether

by Ben Robinson

Siemens is apparently selling off it’s home cordless phone business unit, in a deal that will signal the completion of exit for the company out of the telecommunications industry. Siemens’ exit from the telecom industry has taken 3 years, with the company’s CEO refocusing on segments such as energy and healthcare, in which it is a big player.
Of course, there have been moves previous to this one where Siemens has spent time ridding itself of Telecoms units - who can forget the disastrous divestiture of it’s Mobile handset unit to BenQ in 2005? In the end, BenQ decided to stop funding the division, pushing it in to insolvency. On the more positive side, Siemens spun off it’s network infrastructure business in to a partnership with Nokia, forming NSN in 2007. This year, it has sold off it’s wireless modules business, and also Siemens Enterprise Communications.
So, in some respects a sad ending to Siemens’ involvement in Telecoms, but one which will allow the corporate to be a leaner organisation in the industries which it is now focusing it’s energies in

Steve Jobs: I've never seen anything like this in my career

Steve Jobs: 60 million iPhone apps downloaded

It’s been a month since the iPhone 3G and the App Store made their debut, and Steve Jobs used the occasion to offer up some selected facts and figures:

  • Users have now downloaded more than 60 million programs for the iPhone and iPod touch, or roughly 2 million per day.
  • Revenue from those applications came to about $30 million. 70% went to the developers; Apple kept 30%. (Free apps apparently accounted for the vast majority of the downloads, since average revenue per download is 50 cents.)
  • If sales continue at the current pace, Apple stands to clear at least $360 million a year. “This thing’s going to crest a half a billion, soon,” Jobs told the Wall Street Journal. “Who knows, maybe it will be a $1 billion marketplace at some point in time…. I’ve never seen anything like this in my career for software.”
  • Of the $21 million that developers cleared in the first month, roughly $9 million went to the creators of the top 10 best sellers. Sega Corp., for example, says it sold more than 300,000 copies of its $9.99 Super Monkeyball game in 20 days.
  • Jobs believes a rich array of applications is what will distinguish the iPhone from competing cell phones. “Phone differentiation used to be about radios and antennas and things like that,” he told the Journal. “We think, going forward, the phone of the future will be differentiated by software.”

Apple had earlier reported that 10 million apps were downloaded in the first three days after launch. By July 21, that number had reached 25 million. The latest number suggests that downloads have accelerated in the last 10 days, from July 21st’s 1.25 apps per day to the current 2 apps per day.

Relations between Apple and its developers has not been smooth, however. Jobs commented on one of the hot-button issues: He confirmed that the iPhone operating system contains a kill switch that gives Apple the capability to reach into an iPhone (presumably during a sync operation) and remove a malicious application.

“Hopefully we never have to pull that lever, but we would be irresponsible not to have a lever like that to pull,” he said.

Separately, an Apple spokeswoman defended the decision to pull a program called I Am Rich, which cost $999.99 and did nothing but display the image of a ruby on the iPhone’s screen, off the App Store shelves. She characterized it as a “judgment call.”

Jobs did not use the occasion of the iPhone 3G’s one-month anniversary to report how many of the devices Apple has sold. He may be saving that number for another day — and another round of headlines.

Ahmet Hakan: Turkcell yönetimiyle Recep İvedik zirvesi

Türkcell yönetimiyle Recep İvedik zirvesi

Ahmet Hakan

BİR süre önce...
"Recep İvedik" filmine kıl olduğumu...
Bu filmin zekáya hitap etmediğini...
Değil 5 milyon, 10 milyon kişi izlese bile durumun değişmeyeceğini...
Bu filmin "doğal müşteri kitlesi" ile hiçbir işimin olmayacağını...
Şahan Gökbakar’ın benim gibileri de ikna etmek için çaba sarf etmek yerine kendi "doğal kitlesi" ile yetinmesi gerektiğini...
Buna karşılık, "Turkcell bile bizi seçti, sen ne konuşuyorsun ağa" denilecekse, Turkcell’i de fırlatıp atabileceğimi falan yazmıştım...

Yazdıklarım üzerine...
Turkcell’den aradılar... "Tanışıp konuşabilir miyiz?" dediler... "Hay hay" dedim...
Randevulaştık ve buluştuk...

* * *

Üç dinamik Turkcell yöneticisiyle önce "peşrev" kabilinden lafladık...
Ben "Sizin kaç aboneniz var?", "Hedefiniz ne?" falan diye geyik sorular sordum...
Onlar da bana "Gazeteye gidiyor musun?", "Ne olacak memleketin hali?" kabilinden sualler tevcih ettiler...
Baktık, sonunda laf bitiyor, acımasız ve kaygı uyandırıcı sessizlikler oluşuyor...

Sadede geldik...
Önce ben derdimi, olabildiğince kibar, anlayışlı, alttan alan, hırtlık yapmayan bir tarzda anlattım...
Dedim ki:
"Ben çakmam bu reklam falan işlerinden... Ama kanaatimce ’Revep İvedik’ tiplemesi sizin markayı aşağı çekiyor."
Anlayışla gülümsediler...
Sonra da beni kırıp gücendirmemeye gayret ederek, yaptıkları düzenli araştırmaların sonuçlarını koydular masanın üstüne...
Veriler, Tarhan Erdem’in seçim öncesi yaptığı ve herkese inanılmaz gelen seçim anketinin sonuçları gibiydi...

Şöyle ki:
"Recep İvedik" reklamının "farkındalık eğrisi" acayip yüksekmiş... Halkımız bayılıyormuş bu reklama... "Beğeni eğrisi" ise zirvede imiş...
Ben bir umut, "Peki ya AB grubu? Onlar ne diyor bu işe?" diye sordum.

Yanıtı
alınca seçim gecesi sonuçlar açıklandığında Tuncay Özkan’ın suratında hangi ifade oluştuysa, benim suratta da benzer bir ifade oluştu...
Efendim, AB grubu, yani burjuvamız bile Recep İvedik hayranı imiş...

* * *

Yapacak bir şey yoktu... Son kozumu da kaybetmiştim...
Tam Veli Küçük Paşa’yı arayıp, "Paşam tankların paletlerini ne zaman göreceğiz?" falan diye soracaktım ki...
Paşa’mızın kodeste olduğunu anımsamayayım mı?
O günden beri "Çekip gideceğim ulan bu memleketten" diye sayıklayıp duruyorum.

7 Ağu 2008

Turkcell says Q2 net profit rises 56 pct yr/yr

Turkcell says Q2 net profit rises 56 pct yr/yr

Turkcell, the leading provider of mobile communications services in Turkey, today announced results for the second quarter ended June 30, 2008. All financial results in this press release are unaudited, prepared in accordance with International Financial Reporting Standards ("IFRS") and expressed in US$ unless otherwise stated.

Please note that all financial data is consolidated and comprises Turkcell Iletisim Hizmetleri A.S., (the "Company", or "Turkcell") and its subsidiaries and its associates (together referred to as the "Group"). All non-financial data is unconsolidated and comprises Turkcell only. The terms "we", "us", and "our" in this press release refer only to the Company, except in discussions of financial data, where such terms refer to the Group, and where context otherwise requires.

Highlights for the Second Quarter 2008

-- Revenue increased by 16.7% to US$1,755.0 million compared to Q2 2007 (US$1,503.5 million)

-- EBITDA* increased by 7.4% to US$641.0 million compared to Q2 2007 (US$596.9 million)

-- Net income increased by 55.8% to US$426.4 million compared to Q2 2007 (US$273.6 million)

-- Turkcell's subscriber base grew by 4.7% to 35.4 million compared to Q2 2007 (33.8 million) as of June 30, 2008. The postpaid subscriber base grew by 13.1% to 6.9 million (6.1 million)

-- On an annual basis, blended minutes of usage per subscriber ("MoU") increased by 3.6% to 92.6 minutes (89.4 minutes), and 25.8% on a quarterly basis.

-- Blended average revenue per user ("ARPU") increased by 5.7% to US$14.9 compared to Q2 2007 (US$ 14.1), while the prepaid ARPU grew by 8.0% to US$9.5 (US$8.8)

-- Astelit increased its revenues by 100.9% to US$110.1 million compared to Q2 2007 (US$54.8 million) and continued to build on positive EBITDA generation

*EBITDA is a non-GAAP financial measure. See below for the reconciliation of EBITDA to net cash from operating activities.

-- In this press release, a year on year comparison of our key indicators is provided and figures in brackets following the operational and financial results for the second quarter 2008 refer to the same item in the second quarter of 2007. For further details, please refer to our consolidated financial statements and notes as at and for the quarter ended June 30, 2008 which can be accessed via our web site in the investor relations section ( www.turkcell.com.tr).

Comments from the CEO, Sureyya Ciliv

"I am pleased to see that Turkcell improved its performance and financial results during the second quarter of 2008. We increased our consolidated revenue by 17% to US$1.8 billion and recorded US$641 million EBITDA and US$426 million net income in the second quarter of 2008. I am also satisfied with the recovery in our subscriber additions and the consumption increase as a result of our actions and new offers during the quarter.

We quickly differentiated ourselves from competition during the second quarter. This was primarily achieved through our well designed pricing offers for various segments supported by our new communication campaign. Combined with our new pricing initiatives, we believe our overall value propositions continued to stand out against competition. As a result, we have ensured the momentum we seek for the remainder of 2008.

We believe we are well positioned and focused to handle the competitive challenges coming up in second half of 2008 and remain committed to attaining our year end targets.

On the international front, we acquired an 80% stake in Belarusian Telecommunications Network ("BeST"). I believe the acquisition of BeST represents an opportunity for Turkcell to gain access to a market with growth potential. We believe we can use our complimentary skills and experience gained in Ukraine and CIS effectively in Belarus to start differentiating BeST against the competition as soon as possible.

I thank all the Turkcell employees and business partners for their continued hard work during this period."

Overview of the Second Quarter

During the second quarter, we continued operating in a difficult environment. This can be attributed to the weakening global macro environment, uncertainties in the local market as well as growing competition. We improved operational performance and as a result recorded better operational results in our subscriber base, ARPU and MoU in the second quarter as we have regained our marketing flexibility to launch new campaigns and offers and take necessary pricing actions at the end of February.

Since the end of February, we have been continuously rolling out strong offers while improving our subscribers' price perception. Improved price perception helped increase customer satisfaction, enhance customer retention and strengthen brand image while stimulating usage during the quarter.

We relaunched our successful Pomegranate campaign at the end of first quarter, which provided free on-net usage in return for airtime top ups, having an immediate positive impact on usage starting from March that continued into the second quarter of 2008. In the second quarter of 2008, we recorded better subscriber growth, with a focus on postpaid, corporate and premium customers. Additionally, we achieved higher customer satisfaction and retention rates through our segmented retention activities which we were limited to do during the previous quarter.

Among the new offers, our homezone offer, which remains unique in our market, and our prepaid campaigns were well perceived and as a result led to improved customer satisfaction.

In line with our focus on the youth segment, we continued to cater to the youth segment and have introduced new offers particularly addressing the needs and expectations of all the students and people below the age 25 during the quarter.

We continued to focus on ensuring retention of our customers especially in the premium and corporate segments. We focused on improving our value perception of our corporate customers through the launch of a new tariff, customized complete communication solutions along with co-branding campaigns, and the minute packages aimed at the corporate segment.

As part of our ongoing efforts, recently in July, we introduced the most attractive offer for the largest community for both the prepaid and postpaid subscribers. Prepaid subscribers are granted incentives based on higher unit top ups and the postpaid subscribes upon the purchase of minute packages.

Our VAS revenues constituted 12% of the group's consolidated revenue in the second quarter of 2008. During this period, we recorded high usage levels in corporate messaging, mobile internet usage as well as increased subscriptions to data lines. On the consumer segment, we have seen the positive impact of the SMS campaigns.

All in all, we can state that we have addressed all major segments with improved offers and supported by strong communication campaigns. We believe we will continue to see the benefits of our actions during the second half of 2008.

Financial and Operational Review of Second Quarter 2008

The following discussion focuses principally on the developments and trends in our business in the second quarter of 2008. Selected financial information for the second quarter of 2007, first quarter of 2008 and second quarter of 2008 is also included at the end of this press release.

Selected financial information in TRY prepared in line with the Capital Markets Board of Turkey's standards is also included at the end of this press release.

 
 
    Macro environment Information
                                                         Q2 2008-  Q2 2008-
                               Q2        Q1        Q2    Q2 2007   Q1 2008
                              2007      2008      2008     % Chg     % Chg
    TRY / US$ rate
    Closing Rate            1.3046    1.2765    1.2237    (6.2%)    (4.1%)
    Average Rate            1.3317    1.1898    1.2448    (6.5%)     4.6%
    INFLATION
    Consumer Price Index      1.5%      3.1%      2.8%       -         -
 
 
 

The uncertainty in the global markets continued into the second quarter of 2008. This, coupled with the rising political tension in Turkey, resulted in the depreciation of the TRY against USD during the first half of the year. The government raised its inflation target for the year and the consumer confidence index continued its downward trend. As for our operating environment, we believe that these developments in and out of Turkey although not quantifiable have, to some extent, impacted our operational, business and financial performance for the last two quarters.

As for the potential impact of increasing inflation on our financial results, so far we have not seen a material impact. However, we will continue to carefully monitor the global and local developments that may have an impact on our operating environment and our results of operations.

 
    Financial Review
 
    Profit & Loss Statement
    (million US$)
                                                         Q2 2008-   Q2 2008-
                             Q2         Q1        Q2     Q2 2007    Q1 2008
                            2007       2008      2008      % Chg      % Chg
 
    Total revenue        1,503.5    1,574.4   1,755.0      16.7%      11.5%
    Direct cost of
     revenue              (768.4)    (825.1)   (847.0)     10.2%       2.7%
      Depreciation and
      amortization        (197.8)    (192.5)   (172.5)    (12.8%)    (10.4%)
    Administrative
     expenses              (54.4)     (72.2)    (73.4)     34.9%       1.7%
    Selling and
     marketing expenses   (281.6)    (292.7)   (366.1)     30.0%      25.1%
 
    EBITDA                 596.9      577.0     641.0       7.4%      11.1%
    EBITDA Margin          39.7%      36.6%     36.5%   (3.2 p.p)  (0.1 p.p)
 
    Net finance income/
     (expense)            (110.2)     209.4      70.5    (164.0%)    (66.3%)
      Finance expense     (163.5)     (15.9)    (15.3)    (90.6%)     (3.8%)
      Finance income        53.3      225.3      85.8      61.0%     (61.9%)
    Share of profit of
     equity  accounted
     investees               8.4       19.9      29.3     248.8%      47.2%
    Income tax expense     (46.4)    (126.3)   (118.9)    156.3%      (5.9%)
    Net income             273.6      486.8     426.4      55.8%     (12.4%)
 
 

Revenue: We increased our revenues 16.7% in the second quarter of 2008 to US$1,755.0 million compared to the same quarter of 2007. This was mainly due to a 4.7% increase in our subscriber base, 6.5% appreciation of TRY against US$, and the price increase in 2007 as well as the contribution of our consolidated subsidiaries.

We increased our revenues in the second quarter of 2008 by 11.5% compared to a quarter ago. This was mainly attributable to the 25.8% increase in usage despite a 4.6% depreciation of TRY against US$ and decrease in interconnection revenue due to the downward revision in interconnection rates as of April 1, 2008.

On June 25th, we introduced an upward price adjustment of 3.66% on a blended basis in line with the trends in the general operating environment as well as customer behavior and trends in our competitive environment. However, the impact of this adjustment is not reflected in the second quarter results, yet.

Direct cost of revenue: Our direct cost of revenues, including depreciation and amortization, was realized at US$847.0 million with a 10.2% year on year increase. However, the share of direct cost of revenues in total revenues decreased to 48.3% from 51.1% a year ago. This was mainly due to lower depreciation and amortization expenses as a percent of revenues.

In the second quarter of 2008, direct cost of revenue including depreciation and amortization increased slightly by 2.7% compared to the previous quarter. The share of direct cost of revenue in total revenues in the second quarter of 2008 decreased to 48.3% from 52.4% in the first quarter of 2008. This was mainly due to the lower depreciation and amortization expenses as a percent of revenues and the decrease in interconnection costs due to the downward revision in interconnection rates as of April 1, 2008.

Selling and marketing expenses: In the second quarter of 2008 selling and marketing expenses increased by 30.0% compared to the same period of last year. The proportion of selling and marketing expenses in total revenue rose to 20.9% in the second quarter of 2008 from 18.7% a year ago. This stemmed from higher marketing expenses due to higher campaign activities and higher selling expenses with increased dealer and distributor activities in an active competitive environment.

Selling and marketing expenses increased 25.1% in the second quarter of 2008 compared to the first quarter of 2008. Selling and marketing expenses in total revenues also increased to 20.9% from 18.6% compared to the previous quarter. This was down to the increase in selling expenses due to higher gross acquisitions as well as the increase in marketing expenses due to higher campaign activities along with new offers introduced since the end of February that continued into this quarter.

General and Administrative expenses: In the second quarter of 2008, general and administrative expenses in nominal terms increased by 34.9% on an annual basis, however remaining flat on a quarterly basis. The increase on an annual basis was mainly due to an increase in wages and salaries as well as an average 6.5% appreciation of TRY against US$.

Share of profit of equity accounted investees: In the second quarter of 2008, our equity in net income of unconsolidated investees increased to US$29.3 million from US$8.4 million in the second quarter of 2007. This was mainly due to the solid operational growth in Fintur's operations.

Our 50% owned subsidiary A-Tel impacted two items in the financial statements. A-Tel's revenue generated from Turkcell, amounting to US$12.0 million, is netted from the selling and marketing expenses in our consolidated financial statements. The difference between the total net impact of A-Tel and the amount netted from selling and marketing expenses amounted to US$9.8 million and is recorded in the share of profit of equity accounted investees line of our financial statements.

Net finance income/(expense): We recorded a net finance income of US$70.5 million in the second quarter of 2008 compared to a financial loss of US$110.2 million in the second quarter of 2007. This was mainly attributable to the translation loss of US$19.4 million recorded in the second quarter of 2008, compared to a translation loss of US$139.9 million in the second quarter of 2007. The translation loss recorded in the second quarter of 2007 was mainly due to the forward contracts we engaged at the beginning of 2007. Our interest income for the second quarter of 2008, as compared to the second quarter of 2007, also rose due to an increase in our cash balance.

Net finance income in the second quarter of 2008 decreased from US$209.4 to US$70.5 million compared to the previous quarter. This was mainly due to US$19.4 million translation loss recognized in the second quarter of 2008 as opposed to US$125.8 million translation gain in the first quarter of 2008.

Income Tax Expense: The total taxation charge in the second quarter of 2008 increased by 156.3% year on year to US$118.9 million, mainly due to an increase in profit before tax.

Of the total tax charge in second quarter of 2008, US$112.6 million was related to current tax charges in the second quarter of 2008 and US$6.3 million deferred tax expense, which was realized during the quarter.

 
    Income tax expense
    (million US$)
                                                          Q2 2008-  Q2 2008-
                                 Q2        Q1        Q2   Q2 2007   Q1 2008
                                2007      2008      2008    % Chg     % Chg
 
    Current Tax expense       (79.4)   (146.9)   (112.6)    41.8%   (23.3%)
    Deferred Tax income/
    (expense)                  33.0      20.6      (6.3)  (119.1%) (130.6%)
    Income Tax expense        (46.4)   (126.3)   (118.9)   156.3%    (5.9%)
 

EBITDA: In the second quarter of 2008 EBITDA, in nominal terms, increased 7.4% on annual basis. However, EBITDA margin decreased from 39.7% to 36.5% in the second quarter of 2007 mainly due to higher selling and marketing expenses in an increasingly competitive environment.

EBITDA, in nominal terms, increased 11.1% on a quarterly basis while the EBITDA margin remained almost flat.

Net income: In the second quarter of 2008, our net income increased 55.8% to US$426.4 million on an annual basis. The year on year growth was mainly attributable to a US$139.9 million translation loss that we recorded in the second quarter of 2007 while during the second quarter of 2008 we recorded only US$19.4 million translation loss. Net income margin increased to 24.3% in the second quarter of 2008 from 18.2% last year.

Net income in the second quarter of 2008 decreased by 12.4% on a quarterly basis. This mainly resulted from US$19.4 million translation loss in the second quarter of 2008 compared to the US$125.8 million translation gain in the previous quarter. Additionally, we realized a one-off payment in an amount of approximately US$19.8 million, which also adversely impacted net income. The net income margin in the first quarter of 2008 was 30.9% compared to 24.3% in the second quarter of 2008.

 
    Total Debt: Our consolidated debt amounted to US$638.4 million as of June
30, 2008. Of this total amount, US$535.6 million was related to our Ukraine
operations.
 
 
    Consolidated Cash Flow
    (million US$)
                                               Q2         Q1         Q2
                                              2007       2008       2008
 
    EBITDA                                    596.9      577.0      641.0
    LESS:
    Capex and License                        (190.7)    (192.5)    (229.4)
      Turkcell                                (94.6)     (97.4)     (99.2)
      Ukraine                                 (53.0)     (55.5)     (57.8)
    Investment & Marketable Securities            -      (25.0)      (7.1)
    Net Interest Income                        29.6       83.6       89.9
    Other                                    (282.5)    (456.5)    (198.4)
    Net Change in Debt                         68.4        7.5       (6.9)
    Dividend Paid                            (411.9)         -     (502.3)
    Cash Generated                           (190.2)      (5.9)    (213.2)
    Cash Balance                            1,672.5    3,089.4    2,876.2
 

Cash Flow Analysis: Capital expenditures in the second quarter of 2008 amounted to US$229.4 million of which US$57.8 million was related to our Ukrainian operations.

As for the other item, major cash outflow in second quarter of 2008 was US$378 million, which mainly composed of corporate tax payments belonging to the first quarter of 2008 and 2007. On the other hand, major cash inflows were the US$89 million from bank overdraft and US$65 million frequency usage fee, which was paid in the first quarter of 2008 and recorded as expense in the second quarter.

Consequently, our cash position at the end of the second quarter of 2008 is US$2,876.2 million.

Although the capex budget planned for 2008 remains the same, we revised the planned capex for Astelit and Tellcom as US$300 million and US$135 million, respectively.

 
    Operational Review
    Summary of Operational Data
                                                          Q2 2008- Q2 2008-
                                       Q2     Q1     Q2   Q2 2007  Q1 2008
                                      2007   2008   2008    % Chg    % Chg
 
    Number of total subscribers
     (million)                        33.8   35.1   35.4     4.7%     0.9%
    Number of postpaid subscribers
     (million)                         6.1    6.6    6.9    13.1%     4.5%
    Number of prepaid subscribers
     (million)                        27.7   28.6   28.5     2.9%    (0.3%)
 
    ARPU (Average Monthly Revenue
     per User), blended (US$)         14.1   13.2   14.9     5.7%    12.9%
      ARPU, postpaid (US$)            38.2   37.4   37.6    (1.6%)    0.5%
      ARPU, prepaid (US$)              8.8    7.8    9.5     8.0%    21.8%
 
    ARPU, blended (TRY)               18.8   15.7   18.5    (1.6%)   17.8%
      ARPU, postpaid (TRY)            50.9   44.5   46.7    (8.3%)    4.9%
      ARPU, prepaid (TRY)             11.7    9.2   11.8     0.9%    28.3%
 
    Churn (%)                         4.7%   7.2%   6.9%    2.2pp   (0.3pp)
 
    MOU (Average Monthly Minutes of
     usage per subscriber), blended   89.4   73.6   92.6     3.6%    25.8%
 

Subscribers: Our total subscriber base reached 35.4 million as of June 30, 2008, representing a 4.7% year on year increase. In the second quarter of 2008, we continued to record strong gross additions and led the market in a comparatively slower growing market. We recorded a net addition of approximately 202,000 during the second quarter of 2008.

We recorded the highest postpaid acquisitions in our history and our postpaid subscriber base grew by 13.1% compared to last year. This was achieved through our acquisition campaigns for postpaid and corporate as well as offers incentivizing switches from prepaid to postpaid subscriptions.

We also sustained growth on the prepaid front with 2.9% growth during the same period. On a quarterly comparison basis, our total subscriber base grew slightly by 0.9% while postpaid subscriber base grew by 4.5%. We also continued with our loyalty programs and churn prevention activities for the prepaid subscriber base.

Churn Rate: Churn refers to disconnected subscribers, whether disconnected voluntarily or involuntarily. In the second quarter of 2008, our churn rate was realized at 6.9%. This represented a 2.2 percentage points increase from 4.7% a year ago, reflecting an active competitive environment and the negative effect of the Telecom Authority's retail pricing decision of October 2007. However, this quarter the churn rate slightly decreased to 6.9% from 7.2% in the first quarter of 2008. The majority of the churn rate during the quarter was due to involuntary churn of the low ARPU generating prepaid subscribers who were acquired during previous quarters through periodical campaigns.

MoU: Our blended minutes of usage per subscriber ("MoU"), was realized at 92.6 minutes in the second quarter of 2008, which is the highest MoU since 2004. The 25.8% increase on a quarterly basis was due to the Pomegranate campaign for the individual subscribers, the redesigned newstudent tariff "Bizbize Kampus" for students younger than 25, our Homezone campaign, as well as the increase in the number of subscriptions to our simplified tariff options.

On an annual basis, MoU increased 3.6% compared to the second quarter of 2007, where usage had been boosted by the Pomegranate Campaign launched during that quarter. We decided to relaunch this successful campaign with a new incentive scheme at the end of February 2008, resulting in an improved MoU performance.

ARPU: Our blended average revenue per user ("ARPU") increased by 5.7% to US$14.9 in the second quarter of 2008. This was a result of a 6.5% appreciation of TRY against US$ and the price increase in 2007.

In TRY terms ARPU decreased slightly by 1.6%. Postpaid ARPU decreased by 8.3% in TRY terms with higher subscriptions to new tariff launches offering usage incentives and the increase in data lines on track with our focus on Value Added Services. Prepaid ARPU increased 0.9% in TRY terms as a result of our effective usage incentives such as the Pomegranate campaign.

On a quarterly basis, ARPU increased 12.9% in US$ and 17.8% in TRY terms mainly due to the positive effect of the Pomegranate campaign, despite a 4.6% depreciation of TRY against US$.

We expect to increase TRY ARPU during the second half of 2008 compared to the first half of 2008. For the whole year, we expect flat TRY ARPU compared to 2007, due to the adverse impact of the macroeconomic developments and a downward revision in interconnection rates.

Regulatory and Legal Developments

Telecommunications Authority's on retail pricing decision

On December 18, 2007 Turkcell announced the commencement of litigation at the Highest Administrative Court and requested the suspension and annulment of the Telecommunications Authority ("TA")'s decision to control retail pricing for mobile operators. The TA's decision implied setting a lower ceiling for off-net calling prices (the tariffs that Turkcell charges its subscribers for calls that are terminated outside of its network-on other mobile operators' networks) for all operators and asking Turkcell to set its on-net prices (the tariffs that Turkcell charges its subscribers for calls terminated on its network) to be not lower than its lowest interconnect rate.

As we believe to be in compliance with the Telecommunications Authority's decision regarding retail pricing decision, since the end of February, we have been relaunching new campaigns and offers and taking pricing actions that were halted between October 2007 and February 2008.

In June, the Highest Administrative Court suspended the TA's decision stating that Turkcell should set its on-net prices to be not lower than its lowest interconnection rate until the lawsuit ends. On the other hand, the High Administrative Court rejected Turkcell's request regarding the suspension of the decision about the off-net calling prices.

Electronic Communications Law

The Electronic Communications Law prepared by the Turkish Ministry with the aim of establishing a similar legislative system to the EU regulatory framework and existing Telecommunications Authority regulations, has been approved by the Parliament on July 31, 2008. While we believe this development is an improvement for the better regulation of the Telecommunications sector in Turkey, it will result in an expansion of the Telecommunications Authority's powers and could lead to an increase in our current obligations.

 
    International and Domestic Operations

Fintur

We hold a 41.45% stake in Fintur and through Fintur we hold interests in GSM operations in Kazakhstan, Azerbaijan, Moldova and Georgia.

 
                                                  Q2    Q1     Q2
                                                 2007  2008   2008     Q2
     FINTUR   Q2 2007  Q1 2008 Q2 2008           Rev-  Rev-   Rev-    2008-
      as of     Sub-    Sub-    Sub-   Q2 2008-  enue  enue   enue     Q2
     June 30, scriber scriber scriber  Q2 2007   (US$  (US$  (US$     2007
      2008     (mio)   (mio)   (mio)    %Chg     mio)  mio)   mio)    %Chg
 
    Kazakhstan  4.5    6.5      6.9     53.3%    199    225    242    21.6%
    Azerbaijan  2.6    3.2      3.3     26.9%    104    117    134    28.8%
    Moldova     0.5    0.5      0.6     20.0%     13     14     16    23.1%
    Georgia     1.1    1.4      1.4     27.3%     39     48     54    38.5%
      TOTAL     8.7   11.6     12.2     40.2%    355    404    446    25.6%

Fintur's operations continued to deliver positive operational performance during the second quarter of 2008. The total number of subscribers in Fintur's operations increased by 40.2% to 12.2 million in the second quarter of 2008. The consolidated revenues of Fintur reached US$446 million as of June 30, 2008.

We account for our investment in Fintur using the equity method. Fintur's contribution to income increased 78% to US$39.2 million in the second quarter of 2008.

Astelit

Astelit, in which we hold a 55% stake through Euroasia, has operated in Ukraine since February 2005 under the brand "life:)".

During the second quarter of 2008;

-- Astelit continued to grow its net subscriber additions capturing the largest market share in net additions during the quarter

-- Astelit's market share grew from 12% to 18% compared to the same period of last year.

-- Astelit grew its subscriber base by 58.7% to 10.0 million

-- Approximately 60% of the total subscriber base is active and they generate US$6.3 ARPU, which is quite in line with the weighted average ARPU in the market

    -- Astelit recorded US$110.1 million in revenues with a 100.9% year on
year increase
 
    Summary Data for Astelit
                                                         Q2 2008-   Q2 2008-
                                 Q2     Q1       Q2      Q2 2007    Q1 2008
                                2007   2008     2008        %Chg      %Chg
 
    Number of subscribers
     (million)
      Total                      6.3    9.4     10.0       58.7%       6.4%
      Active (3 months)(1)       4.0    5.8      5.9       47.5%       1.7%
 
    Average Revenue per User
     (ARPU) in US$
      Total                      3.0    3.3      3.8       26.7%      15.2%
      Active (3 months)          5.0    5.4      6.3       26.0%      16.7%
 
    Revenue                     54.8   90.2    110.1      100.9%      22.1%
    EBITDA(2)                   (9.6)   2.1      3.6      137.5%      71.4%
    Net Loss                   (46.1) (32.4)   (18.7)      59.4%      42.3%
 
    Capex                       53.0   55.5     57.8        9.1%       4.1%
 
    (1) Active subscribers are those who in the past three months made a
        transaction which brought revenue to the Company.
    (2) EBITDA is a non-GAAP financial measure. See below for the
        reconciliation of Euroasia's EBITDA to net cash from operating
        activities. Eurasia holds 100% stake in Astelit.
 

Inteltek

Inteltek is our 55% owned subsidiary that operates in the sports betting business. Inteltek is operating under Fixed Odds Betting and Central Betting System contracts until a new tender is held by Spor Toto and operations start under the new tender. The new tender is announced to take place on August 12, 2008. Inteltek intends to participate to the new tender.

Acquisition of BeST in Belarus

As we announced on July 29, 2008, we signed a Share Purchase Agreement ("SPA") to acquire an 80% stake in Belarusian Telecommunications Network ("BeST") for a consideration of US$500 million. The payment is expected to be realized in 3 tranches whereas US$300 million is expected to be paid on the closing date and an additional US$100 million tranches are expected to be paid on December 31, 2009 and 2010 respectively. An additional payment of US$100 million shall be made when BeST records a full-year positive net income for the first time. The transaction is expected to close in 30 days from the SPA's signature date.

Reconciliation of Non-GAAP Financial Measures

We believe that EBITDA is a measure commonly used by companies, analysts and investors in the telecommunications industry, which enhances the understanding of our operating results and assists in the evaluation of our capacity to meet our financial obligations. We also use EBITDA as an internal measurement tool and, accordingly, we believe that the presentation of EBITDA provides useful and relevant information to analysts and investors.

Beginning from the 2006 fiscal year, we have revised the definition of EBITDA which we use and we report EBITDA using this new definition starting from the first quarter of 2006 results announcement to provide a new measure to reflect solely cash flow from operations.

 
    EUROASIA (Astelit)
    US$ million
                                                         Q2 2008-  Q2 2008-
                                  Q2       Q1      Q2    Q2 2007   Q1 2008
                                 2007     2008    2008     % Chg     % Chg
 
    EBITDA                      (9.6)     2.1     3.6   (137.5%)     71.4%
    Other operating income/
     (expense)                     -      0.1    (0.1)       -     (200.0%)
    Financial income             0.4      0.8     1.8    350.0%     125.0%
    Financial expense          (17.2)    (9.1)  (12.5)   (27.3%)     37.4%
    Net increase/(decrease) in
     assets and liabilities    (11.0)    26.6    37.4   (440.0%)     40.6%
    Net cash from operating
     activities                (37.4)    20.5    30.2   (180.7%)     47.3%
 

The EBITDA definition used in our previous press releases and announcements had included Revenues, Direct Cost of Revenues excluding depreciation and amortization, Selling and Marketing expenses, Administrative expenses, translation gain/(loss), financial income, income on unconsolidated subsidiaries, gain on sale of investments, income/(loss) from related parties, minority interest and other income/(expense). Our new EBITDA definition includes Revenues, Direct Cost of Revenues excluding depreciation and amortization, Selling and Marketing expenses and Administrative expenses, but excludes translation gain/(loss), financial income, income on unconsolidated subsidiaries, gain on sale of investments, income/(loss) from related parties, minority interest and other income/(expense).

EBITDA is not a measure of financial performance under IFRS and should not be construed as a substitute for net earnings (loss) as a measure of performance or cash flow from operations as a measure of liquidity.

The following table provides a reconciliation of EBITDA, which is a non- GAAP financial measure, to net cash provided by operating activities, which we believe is the most directly comparable financial measure calculated and presented in accordance with IFRS.

 
 
    TURKCELL
    US$ million
                                                          Q2 2008-   Q2 2008-
                               Q2        Q1         Q2    Q2 2007    Q1 2008
                              2007      2008       2008     % Chg      % Chg
 
    EBITDA                   596.9     577.0      641.0      7.4%      11.1%
    Income Tax Expense       (46.4)   (126.4)    (118.9)   156.3%      (5.9%)
    Other operating
     income/(expense)          3.1       1.4       (1.6)  (151.6%)   (214.3%)
    Financial income           3.8       3.2       10.0    163.2%     212.5%
    Financial expense         (8.3)     (2.4)     (12.7)    53.0%     429.2%
    Net (decrease)/increase
     in assets and
     liabilities            (236.5)   (292.9)    (252.9)     6.9%     (13.7%)
    Net cash from
     operating activities    312.6     159.9      264.9    (15.3%)     65.7%
 

Turkcell Group Subscribers

We have approximately 48.6 million proportionate GSM subscribers as of June 30, 2008. This is calculated by taking the number of GSM subscribers in Turkcell and each of our subsidiaries and multiplying the number of unconsolidated investees by our percentage ownership interest in each subsidiary. This figure includes the proportionate rather than total number of Fintur's GSM subscribers. However, it includes the total number of GSM subscribers in Astelit and in our operations in the Turkish Republic of Northern Cyprus ("Northern Cyprus") because the financial statements of our subsidiaries in Ukraine and Northern Cyprus are consolidated with Turkcell's financial statements.

 
    Turkcell Group Subscribers
    (million).
                                                        Q2 2008-    Q2 2008-
                               Q2       Q1      Q2      Q2 2007     Q1 2008
                              2007     2008    2008       % Chg       % Chg
 
    Turkcell                  33.8     35.1    35.4        4.7%        0.9%
    Ukraine                    6.3      9.4    10.0       58.7%        6.4%
    Fintur (pro rata)          2.1      2.8     3.0       42.9%        7.1%
    Northern Cyprus            0.3      0.3     0.2      (33.3%)     (33.3%)
    TURKCELL GROUP            42.5     47.6    48.6       14.4%        2.1%