Turkcell backs 3G cost sharing, sees new subscribers

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Tue Jul 28, 2009 6:31am EDT

* Turkcell, Turk Telekom back 3G infrastructure sharing * Aim to cut investment costs to build Turkey network

(Adds details, background)

ISTANBUL, July 28 (Reuters) - The chief executive of Turkcell (TCELL.IS), Turkey's biggest mobile-phone operator, said on Tuesday he supported the idea of sharing with rivals the cost of building third-generation networks in the country.

The call by Sureyya Ciliv came a day after Turk Telekom (TTKOM.IS) Chief Executive Paul Doany recommended teaming up with 3G rivals Vodafone (VOD.L) and Turkcell.

Turk Telekom owns mobile phone operator Avea, which is also building a high-speed network.

After several delays, mobile phone operators in Turkey are keen to get the high-speed 3G network up and running to take advantage of fast-growing demand for wireless data, but they also want to keep investment costs down during the economic downturn.

It was unclear whether the possible sharing of infrastructure investments would affect current deals with telecoms equipment makers.

Ericsson (ERICb.ST), the world's biggest mobile network maker, said in March it had signed a deal with Turkcell to be the main supplier for its 3G network in Turkey.

Avea said in April it had picked Ericsson, China's Huawei Technologies [HWT.UL] and ZTE (0763.HK) to supply 3G infrastructure.

Last December Vodafone said it had picked Huawei to supply 3G infrastructure in Turkey.

Shares in Turkcell and Turk Telekom traded flat at midday, compared with a slightly negative Istanbul blue-chip index .XU100. Avea is unlisted.

(Reporting by Ercan Ersoy; writing by Paul de Bendern, editing by Will Waterman)

((paul.debendern@reuters.com; +90 212 350 7057; Reuters Messaging: paul.debendern.reuters.com@reuters.net))

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