Vodafone Turkey to invest 1.3 bln lira in 09-agency

ISTANBUL, March 3 (Reuters) - Vodafone's (VOD.L) Turkish unit plans to invest 1.3 billion lira ($754 million) in 2009, hoping to turn around last quarter's poor performance which saw revenue fall 14.5 percent, state-run news agency Anatolian said.

Turkey's mobile phone market, which has one of the highest penetration rates in Europe, is intensively competitive and market leader Turkcell (TCELL.IS) and Turk Telekom's (TTKOM.IS) Avea have gained at the expense of Vodafone.

Vodafone Turkey chief executive Serpil Timuray said the company would invest 1.3 billion lira this year, focusing on growth, customer satisfaction and driving sales, Anatolian reported on Tuesday. A further 500 staff would be employed in Turkey to try and gain new customers.

Number portability, which allows customers to switch operators while keeping their numbers, was introduced in Turkey at the end of last year, triggering a price war. Asked whether Vodafone had dropped out of the race, Timuray answered, "Turkey is a priority and there is an expectation of a success story. Vodafone is looking long term at markets like this."

(Writing by Alexandra Hudson; Editing by David Cowell)