Broadband in Turkey: From Regulator’s Perspective

Dr. Muhterem ÇÖLHead of Tariffs Department

Content

Broadband Figures Regulatory Environment

Wholesale Broadband Regulation

Conclusive Remarks

2

Broadband Figures

3

2004 2005 2006 2007 2008 2009 20100

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

0

2

4

6

8

10

12

14

0.750000000000004

2.31

4.11

6.53

8.37

9.91

11.8942192151556

DSL Other Penetration

Number of Broadband subscribers and penetration

~ 9 M

Broadband Subscription by Technology

4

2010-4

2010-3

2010-2

2010-1

2009

2008

2007

2006

71%

75%

79%

81%

85%

93%

96%

96%

6.35%

6.10%

6.25%

6.10%

6.30%

5.60%

3.50%

3.20%

16.95%

14.40%

10.95%

8.80%

5.80%

TTNet Other ISPs Cable Mobile Fibre Other

Broadband Figures

DSL

DSL

Household Broadband Penetration

5

Netherland

Denmark

Sweden

Finaland

United Kingtom

BelgiumFra

nce

Germany

Austria

EU Avarage

Spain

Ireland

Hungary

Portugal

Turkey

Poland

Czech Republic Ita

ly

Bulgaria0

10

20

30

40

50

60

70

80

74 74 71 66 62 61 57 55 54 48 44 43 43 39 38.9 38 36 31

21

Broadband Figures

Wholesale Broadband Models

DSLAM(1)

(4) Unbundled Local Loop1st Approval of RUO in November 20062nd Approval of RUO in February 2009Tariffs Revision in August 2007 and June 2009First Lines in January 2008

İSSBRAS

(1) ResaleTariff Approval in 2004Agreement in December 2004Reference Offer in July 2007

(2) IP Level BSATariffs Approval in 2005Agreement in February 20071st Reference Offer in July 2007

(3) ATM Level BSAReference Offer came into force in July 2009

(2)

(4)

(3)

Regulatory Environment

7

Access Type# of

agreements

RESALE 26

IP BSA 13

LLU 9

Regulatory EnvironmentWholesale Broadband Models

RESALE - 2004

IP BSA - 2005

LLU - 2006

Naked DSL

8

PSTN Exchange

PSTN Services

Splitter

DSL Modem

MDF Splitter

DSL AMBroadband

xDSLProvision of DSL

access w/o PSTN

subscription

Naked DSL surcharge: € 3.7

Subscribers are

€ 1.8 to € 5.5 better-off

per a month

Regulatory Environment

9

Dec, 10 Jan, 11 Feb, 11 Mar, 11

05000

10000150002000025000300003500040000

100

8524

26 987

38 168

Regulatory EnvironmentNumber of Naked DSL Subscribers

Switching and Bulk Migration

10

Switching - between ISPs Max. Service cut-off period 2 hours (3 hours for

specific cases) Max. 4 times per year

Bulk Migration - among Wholesale Access Models

Resale→BSAResale→LLU

BSA → LLU

Regulatory Environment

Switching and Bulk Migration

11Cumulative Increase in # of Switching Subscribers

OctoberNovember

DecemberJanuary

FebruaryMarch

020,00040,00060,00080,000

100,000120,000140,000160,000180,000

9,954 24,61148,763

82,186

118,110

166,005

Regulatory Environment

Switching and Bulk Migration

12Cumulative Increase in # of Subscribers of other ISPs

Oct

, 09

Nov,

09

Dec,

09

Jan,

10

Feb,

10

Mar

,10

Apr,

10

May

,10

June

, 10

July

, 10

Aug,

10

Sep,

10

Oct

, 10

Nov,

10

Dec,

10

Jan,

11

Feb,

11

Mar

, 11

0

50,000

100,000

150,000

200,000

250,000 Avarage monthly increase of subscriber:

19.887

Avarage monthly increase of subscriber:

7.874

Regulatory Environment

Conclusive Remarks

13

•Opportunity for growthBROADBAND

•Unsaturated BB Market, •~12% penetration•74M population,

TURKEY•Contribute to BB penetrationNaked DSL

SWITCHING and BULK MIGRATION

COMPETITION

Contribute to Competition

Better Quality ServicesInvestment

THANK YOU

Dr. Muhterem ÇÖLHead of Tariffs Department