Avea - Oger Telecom

Avea

Business Description
Avea is Turkey’s fast growing mobile communications company.
Headquartered in Istanbul, it has a customer base of approximately 8.5
million by the end of June 2007 and represents 15% of the total Turkish
mobile market. Avea offers innovative services tailored for the usage of
both individual and corporate customers.
Its vision is to be the leading company through serving its customers
in the best way by putting their needs first. Avea aspires to be the best
mobile telecommunications company in Turkey through innovation, custtomer
focus and service quality.
Financial Summary
In 2006, total revenue were TRY1,259 million, (US$881 million1) and
EBITDA TRY172 million, (US$120 million1) compared to TRY1,067 million,
(US$747 million1) and TRY0.6 million, (US$0.42 million1) in 2005.
Background
TT&TIM Iletisim Hizmetleri A.S was officially founded in February 2004
by the merger of Aria, owned by Telecom Italia Mobile (through TIM
International NV) and the Turkiye Is Bankasi Group, and Aycell, owned
by Türk Telekom.
There was a short period just after the merger in which Aria and Aycell
brands were sustained under the umbrella of TT&TIM. As of June 23,
2004, the new “Avea” brand, expressing the synergy born after the
merger, was introduced to the market.
The commercial name of “TT&TIM Iletisim Hizmetleri A.S.” was changed
to “Avea Iletisim Hizmetleri A.S.” on October 15, 2004.
Avea
The shareholders’ percentage in the share capital changed following the
acquisition of TIM International’s shares by Türk Telekom. As a result,
TürkTelekom owns 81,12% of Avea and thus the ultimate parent comppany
of Avea is Oger Telecom Limited which owns the majority shares of
Ojer Telekomünikasyon A. . (“OTA ”) and indirectly Türk Telekom.
Avea is a new and strong entity that contributes to the development of
the Turkish telecommunications sector. The integration of the experience
and the know-how of the two companies created operational and
financial strength. Avea, the young and innovative GSM operator of
Turkey has stimulated the competitive environment of the Turkish GSM
sector.
Business Review
Better customer experience is achieved by optimising communication
with customers and by striving for excellence in customer satisfaction.
Avea’s progress towards this goal can be observed in every field of its
performance, from improvements in network to marketing campaigns
and tariffs.
In 2006 Avea started to sell through distributors as an additional sales
channel. The support of distributors dramatically increased the availability
of SIM card and contour card offerings throughout Turkey putting
Avea products in the right place, at the right time in the best places.
Dealers welcomed the change as distributors offered more flexible working
conditions.
Avea also improved availability by increasing points of sales through
agggressive acquisition of new dealers, opening up its own flagship
stores and creating a presence in chain stores. Accordingly, it has
increased its total number of dealers to 813. Avea is ambitious in terms
of growing the total number of shops, but is also very selective in terms
of choice of location. High profile positions of strategic importance with
high foot traffic have been pinpointed as new sales and service points.
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Avea
In 2006 Avea forged ahead to expand and improve its network by
investing over $228.2 million. Investment in the core network focused on
enhancement of the existing switching structure capacity, which led to
93.3% population coverage. Investment in the radio network focused on
coverage enhancement, infrastructure modernisation by massive regional
swap operations and capacity improvement. In 2006, Avea increased
its number of base station controllers by more than 1100 and intends to
keep improving its coverage in 2007. The company also provides natiowide
EDGE coverage.
These network investments enable Avea to satisfy customer expectations,
conform to the Telecommunication Authority’s acceptable quality
criteria and meet its targeted population and area coverage objectives.
Avea invested over US$27.8 million in 2006 and plans to more than double
this figure in 2007 to expand and improve its information technology.
1 2006 period average exchange rate: ZAR/US$: 6.781
26 Oger Telecom Annual Report 2006
Avea continued to keep the service quality high for both subscribers and
internal operations, which enabled Avea to achieve high levels of customer
satisfaction, increase service revenues, and reduce operational costs.
By investing in Call Center infrastructure, increasing capacity and implementing
new capabilities, like Voice Recording and new IVR systems,
Avea drastically improved the ease of accessibility and quality of service.
Human resources are one of the most important issues to Avea and as
such, Avea continually invests in and improves its human capital.
Investmments are being made in organisational and job design, quality,
process improvements, productivity and talent development. Avea currently
has over 1900 employees working at its offices in Istanbul, Ankara,
Izmir and 28 other cities throughout Turkey.
For the 52 million mobile phone subscribers in Turkey, the ideal GSM
operator is the one that provides “high quality communication for a
reasonable price”. Avea has positioned itself as the operator that delivers
high quality communication for real prices and realises it objective
accordingly.

Avea
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