Turkcell Passes Subscriber Landmark

Turkey's Turkcell says that it added 1.1 million net new subscribers during the third quarter of this year, bringing their total base of 30.8 million. Revenue increased to US$1,199.4 million in the third quarter of 2006 mainly due to the higher MoU and increasing subscriber base, despite the 4% currency depreciation against the dollar.

Turkcell recorded EBITDA of US$477.1 million in the third quarter of 2006, and net income increased to US$311.8 million (from US$86.8 million) driven mainly by the absence of second quarter's one-time deferred tax charge and foreign exchange losses incurred during the second quarter

Turkcell said that the growth in the Turkish GSM market continued in the third quarter of 2006 with efforts of GSM operators to increase their share of the new subscriptions as well as to increase the usage of mobile services.

In the third quarter of 2006, one of the shareholders of Avea, Telecom Italia Mobile, announced the decision to sell and completed the sale of its stake in Avea to Turk Telekom. Turkcell's competitors in general remained vocal and continued with their price-based offerings while remaining focused on improving their infrastructure related capabilities as one of their high priorities. The company said that it did not believe price-based competition had intensified during the quarter.

During the third quarter of 2006, there were no major developments in the regulatory environment regarding the issuance of any 3G licenses, or regulations on Mobile Virtual Network Operators ("MVNO") or Mobile Number Portability ("MNP").

Regarding the 3G tender process, despite previous announcements made by the Telecommunications Authority that had pointed to a time frame towards the end of 2006, Turkcell says that it now expects the tender process to take place in the first half of 2007. With respect to the MNP, the Telecommunications Authority is expected to issue the final regulation soon, whereas implementation may be expected possibly towards the second half of 2007.

Concluding, the company says that it is seeking further overseas expansion opportunities and is putting in place a significant external debt financing to be utilized for potential international investments, if one or more opportunities are realized."

Posted to the site on 10th November 2006