UPDATE 1-Turk Telekom sees 2 bln lira investment in 2009

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Mon Jul 27, 2009 6:39am EDT

* Unit Avea expects to invest more than 1 bln lira

* CEO says hopes to pool 3G investments with rivals

(Adds plans to pool investment with rivals)

ISTANBUL, July 27 (Reuters) - Turkish fixed line operator Telekom (TTKOM.IS) plans to invest 2 billion lira ($1.35 billion) in 2009, excluding investments in its third-generation (3G) mobile network, Chief Executive Paul Doany said on Monday.

Doany also told a news conference that Telekom hopes to pool its 3G investments with rivals Turkcell (TCELL.IS) and Vodafone's (VOD.L) local unit to cut costs.

Telekom's mobile unit Avea expects to invest more than 1 billion lira in 2009, mostly in 3G, he said.

Turk Telekom last week posted a 20 percent fall in first-half net profit as costs from its mobile unit soared. [ID:nLK113640]

It also said its target of 8-10 percent revenue growth was becoming more challenging due to a recession.

The phone company garners most of its revenue from its fixed-line business, although around 40 percent of revenues now come from Turk Telekom's market-leading broadband business and its Avea mobile phone unit -- No. 3 in Turkey.

Since the introduction of mobile-phone-number portability in the highly competitive Turkish market late last year, major players have seen costs rise as they spend on marketing initiatives and seek to lure customers with lower charges. ($1 = 1.4775 Turkish lira) (Writing by Ibon Villelabeitia; Editing by Simon Jessop)

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