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Business Description<br />
<strong>Avea</strong> is Turkey’s fast growing mobile communications company.<br />
Headquartered in Istanbul, it has a customer base of approximately 8.5<br />
million by the end of June 2007 and represents 15% of the total Turkish<br />
mobile market. <strong>Avea</strong> offers innovative services tailored for the usage of<br />
both individual and corporate customers.<br />
Its vision is to be the leading company through serving its customers<br />
in the best way by putting their needs first. <strong>Avea</strong> aspires to be the best<br />
mobile telecommunications company in Turkey through innovation, custtomer<br />
focus and service quality.<br />
Financial Summary<br />
In 2006, total revenue were TRY1,259 million, (US$881 million1) and<br />
EBITDA TRY172 million, (US$120 million1) compared to TRY1,067 million,<br />
(US$747 million1) and TRY0.6 million, (US$0.42 million1) in 2005.<br />
Background<br />
TT&TIM Iletisim Hizmetleri A.S was officially founded in February 2004<br />
by the merger of Aria, owned by <strong>Telecom</strong> Italia Mobile (through TIM<br />
International NV) and the Turkiye Is Bankasi Group, and Aycell, owned<br />
by Türk Telekom.<br />
There was a short period just after the merger in which Aria and Aycell<br />
brands were sustained under the umbrella of TT&TIM. As of June 23,<br />
2004, the new “<strong>Avea</strong>” brand, expressing the synergy born after the<br />
merger, was introduced to the market.<br />
The commercial name of “TT&TIM Iletisim Hizmetleri A.S.” was changed<br />
to “<strong>Avea</strong> Iletisim Hizmetleri A.S.” on October 15, 2004.<br />
<strong>Avea</strong><br />
The shareholders’ percentage in the share capital changed following the<br />
acquisition of TIM International’s shares by Türk Telekom. As a result,<br />
TürkTelekom owns 81,12% of <strong>Avea</strong> and thus the ultimate parent comppany<br />
of <strong>Avea</strong> is <strong>Oger</strong> <strong>Telecom</strong> Limited which owns the majority shares of<br />
Ojer Telekomünikasyon A. . (“OTA ”) and indirectly Türk Telekom.<br />
<strong>Avea</strong> is a new and strong entity that contributes to the development of<br />
the Turkish telecommunications sector. The integration of the experience<br />
and the know-how of the two companies created operational and<br />
financial strength. <strong>Avea</strong>, the young and innovative GSM operator of<br />
Turkey has stimulated the competitive environment of the Turkish GSM<br />
sector.<br />
Business Review<br />
Better customer experience is achieved by optimising communication<br />
with customers and by striving for excellence in customer satisfaction.<br />
<strong>Avea</strong>’s progress towards this goal can be observed in every field of its<br />
performance, from improvements in network to marketing campaigns<br />
and tariffs.<br />
In 2006 <strong>Avea</strong> started to sell through distributors as an additional sales<br />
channel. The support of distributors dramatically increased the availability<br />
of SIM card and contour card offerings throughout Turkey putting<br />
<strong>Avea</strong> products in the right place, at the right time in the best places.<br />
Dealers welcomed the change as distributors offered more flexible working<br />
conditions.<br />
<strong>Avea</strong> also improved availability by increasing points of sales through<br />
agggressive acquisition of new dealers, opening up its own flagship<br />
stores and creating a presence in chain stores. Accordingly, it has<br />
increased its total number of dealers to 813. <strong>Avea</strong> is ambitious in terms<br />
of growing the total number of shops, but is also very selective in terms<br />
of choice of location. High profile positions of strategic importance with<br />
high foot traffic have been pinpointed as new sales and service points.<br />
<strong>Oger</strong> <strong>Telecom</strong> Annual Report 2006 25