Profile: Turkcell Iletisim Hizmetleri A.S. (TKC)

Turkcell Iletisim Hizmetleri A.S. (Turkcell), incorporated on October 5, 1993, is a provider of mobile services in Turkey. The Company provides mobile voice and data services over its global system for mobile communications network. As of December 31, 2008, Turkcell provided service to its subscribers in 202 countries through commercial roaming agreements with 607 operators. The Company provides wireless and value-added mobile communications services to subscribers throughout Turkey. Subscribers can choose between its postpaid and pre-paid services. As of December 31, 2008, Turkcell had approximately 29.5 million pre-paid subscribers and 7.5 million postpaid subscribers. The Company has investments in Azerbaijan, Georgia, Kazakhstan, Moldova, and also in the Turkish Republic of Northern Cyprus, Ukraine and Belarus. In August 2008, Turkcell announced that it had completed the acquisition of an 80% stake in Belarusian Telecommunications Network (BEST).

The Company’s subscribers can choose between its postpaid and prepaid services. As of December 31, 2008, postpaid subscribers signed a subscription contract and receive monthly bills for services. Prepaid subscribers must purchase a starter pack which consists of a Simcard and includes airtime ranging from 20 to 250 counters. Scratch cards can be purchased in increments of 25 to 1000 counters.

Voice Services

Voice services are the main services provided by the Company to its customers. Voice services consist of wireless telephone services on a pre-paid and postpaid basis. Its value-added services (VAS) are categorized into Consumer Services and Corporate Services. VAS provides a number of consumer-oriented services, including mobile Internet and content services. turkcell-im is a common communication and access channel for Turkcell’s VAS. Launched in September 2006, turkcell-im facilitates mobile Internet usage and download of content including news, entertainment, sports, music and chat. As of December 31, 2008, turkcell-im had 11.2 million users. In May 2008, the Company relaunched its offers of daily, weekly and monthly Internet packages. Turkcell offers different packages that may be used on mobile phones and, with a Connect Card, on laptop computers.

In 2008, the Company launched the IsteCozumler.com Web portal, which enables small medium enterprises (SMEs) to get various services, such as customer relationship management (CRM), enterprise resource planning (ERP) communication and human resources (HR) applications from a hosted environment through a pay as you go model. Its solutions catalogue for 2008 included 60 products with 53 partners. The Company also offers sales force automations, vehicle tracking and telemetry solutions for different sectors and segments in its solutions catalogue. Push to Talk (PTT) and Mobile POS are two additional value added services provided to corporate customers that need instantaneous, fast voice communication. In 2008, the Company’s solutions for corporate customers were IstePosta, IsteKimkimdir and Team tracking through the phone. IstePosta is a service launched in March 2008, for Turkcell corporate customers that do not yet have corporate e-mail addresses and Websites. IsteKimkimdir, the corporate mobile phonebook to provide service worldwide, was launched in May 2008.

Other Services

Mobile Signature is a global sysem for mobile comunications (GSM) service that enables customers to sign electronic documents and transactions with a legally-accepted digital signature using GSM subscriber identity module (SIM) cards. Mobile signature subscribers can easily verify their personal identity in a digital environment and complete transactions remotely, without their physical presence. Saglik365, Health365, is a ubiquitous health platform with a motto of my everyday health page for its users. Saglik365 is a Turkcell owned platform launched in October 2008. In 2008, the Telemedicine Project was realized at two villages called Cakirhoyuk and Ahmethoca in Adiyaman City. Family doctors and nurses in the villages could, through telephone, consult with expert doctors in the city thorugh mobile ECG (Electrocardiography), mobile blood pressure devices.

The Company has co-operated with the Metropolitan Municipality to provide the mobile solution to manage traffic. The agreement signed between these two establishments allows Turkcell subscribers to download the IBB Cep Traffic program to their cell phones in order to be guided to their destination. Turkcell launched a location-based service platform in 2008. Turkcell partners and all third parties could connect to Turkcell’s platform and develop new location based services. In January 2008, Turkcell and Garanti Bank launched the third global Near Field Communication (NFC)-based mobile payment pilot, Turkcell Mobile Wallet, a project to integrate credit cards into cell phones. Turkcell introduced mobile payment in August 2008. This service allows Turkcell subscribers to make purchases up to 20 Turkish Lira via Turkcell invoice or counters. Turkcell Mobile Learning is a mobile Internet solution. Its management and reporting interface is Web based, which can be used through simple Internet access and a Web browser. Turkcell creates and manages mobile marketing and advertisement channels, which on one side, are a value for corporate customers in terms of marketing, and on the other side, bring value to subscribers through targeted offers and incentives from brands that meet their interests and needs.

The Company’s coverage extends to many countries in Europe, Asia, Africa and North and South America. As of December 31, 2008, Turkcell offered its subscribers international roaming in 202 destinations around the world, pursuant to commercial roaming agreements with 607 operators. It provides roaming services for the pre-paid subscribers of foreign mobile operators visiting Turkey. This service, called passive CAMEL, can only be enabled if both operators have installed the CAMEL system on their networks. As of December 31, 2008, it offered prepaid roaming to the prepaid subscribers of 195 operators in 104 destinations. It offers roaming services for Turkcell prepaid subscribers going abroad. This service, called active Customized Applications for Mobile Network Enhanced Logic (CAMEL), can only be enabled if both operators have installed the CAMEL system on their networks. As of December 31, 2008, it offered prepaid roaming to Turkcell prepaid subscribers through 222 operators in 124 destinations.

Turkcell offers general packet radio service (GPRS) roaming. As of December 31, 2008, the Company had 358 GPRS roaming partners in 144 destinations. As of December 31, 2008, it signed 137 International SMS Interworking Agreements. As of December 31, 2008, the Company’s subscribers can send SMS to more than 607 mobile operators located in 202 destinations, including 136 code division multiple access/time division multiple access (CDMA/TDMA) operators in North America and China. As of December 31, 2008, its subscribers were able to send MMS to 89 mobile operators in 58 destinations.

The Company competes with Vodafone Telekomunikasyon A.S., Avea Iletisim Hizmetleri A.S and Turk Telekomunikasyon A.S.