Mehmet İLERİ ICT Expert Information and Communications Technologies Authority Turkish Broadband Market & Physical Infrastructure Access Market

CONTENT Figures of Turkish Broadband Market Physical Infrastructure Access Market 2 / 18

BROADBAND MARKET ACTORS Broadband Market DSL & Fiber Türk Telekom (incumbent - wholesale service provider TTNet (retail service provider of incumbent) Other ISPs Cable Türksat Alternative Fiber Network Superonline Vodafone Net 3G Avea Turkcell Vodafone Subscriber 3 / 18

 Broadband Coverage  Number of Subscribers DSLCableFiber % 99 (Pop.)%17 (HH)~%14 (HH) DSLCableFiberOther3G ,20%4,98%6,42%1,39%19,00% end of / 18 MARKET FIGURES

TREND IN FIXED BB PENETRATION 5 / 18

ResaleIP BSAnDSLLLUTOTAL % TTNet (Incumbent) ,77% Alternative Operators ,23% TOTAL % 5,13%84,32%10,46%0,08% xDSL ACCESS MODELS end of / 18

PROGRESS IN BROADBAND  Predominance of DSL usage  Rapid growth of 3G and mobile broadband compared to EU  42,4 % increase in the last year  Low penetration of cable broadband  16,9 % coverage  Increase in capacity demand for DSL packages  %89 of subscribers chose up to 8 Mbit/s speed or higher  Transition from DSL to fiber  148,4 % increase in fiber during last year.  Fiber coverage nearly doubled in the last year 7 / 18

RegulationIssuance dateImplementation date Duct sharingFebruary 2009December 2009 ISP Churn/ Bulk migration July 2010October 2010 Naked DSLJuly 2010December 2010 Wholesale Line RentalJuly 2011February 2012 Fibre Access DecisionOctober 2011 COMPETITIVE SAFEGUARDS 8 / 18

CRITICAL REGULATIONS (I)  ICTA Board Decision 2011/511, October 2011  Exclusion of FTTB/H from Market Analysis  For 5 years or  Until FTTB/H subscribers/Fixed BB subscribers=25%  Turk Telekom has to provide access to FTTB/H infrastructure  Through Resale and BSA services  On equal conditions and non-discriminatory basis 9 / 18

CRITICAL REGULATIONS (II)  Amendments in fiber access agreements  ICTA Board Decision 2012/303, July 2012  Maintenance of the rights of ISPs within the areas of fiber transition (from copper)  Inclusion of all fibre subscribers including those who are being provided DSL in fiber transition areas into the 25% quota 10 / 18

Physical Infrastructure Access Market (Market 4) 2011/12011/22011/32011/4 Copper Cable Fiber /12012/22012/32012/4 Copper Cable Fiber Homepass Numbers 11 / 18

Fiber Subscriber Numbers 12 / 18

Avaliable speeds and their distributions ADSL/VDSLCableFiber 512 Kbit/sn 1 Mbit/sn 3 Mbit/sn 2 Mbit/sn 5 Mbit/sn 4 Mbit/sn3 Mbit/sn10 Mbit/sn 8 Mbit/sn4Mbit/sn20 Mbit/sn 16 Mbit/sn5 Mbit/sn24 Mbit/sn 6Mbit/sn35 Mbit/sn 32 Mbit/sn8 Mbit/sn50 Mbit/sn 35 Mbit/sn10 Mbit/sn100 Mbit/sn 50 Mbit/sn12 Mbit/sn1000 Mbit/sn 100 Mbit/sn15 Mbit/sn 20 Mbit/sn 40 Mbit/sn 60 Mbit/sn 100 Mbit/sn March 2012 December / 18

xDSLFIBER Speed (Mbps) Quota (GB)FU (GB)Price (Euro) Speed (Mbps) Quota (GB)FU (GB)Price (Euro) , , , ,69 <84- 12, ,59 <86- 14, ,74 < , , , ,41 < , ,32 < , , , , , , , ,08 CABLE ,76 <1-- 12,45 All taxes are included Source: TTNet, Turkcell Superonline ve Türksat June 2012 <3-- 21,03 <5-- 29,61 < ,49 < ,74 < ,32 < ,91 < ,32 < ,61 < ,91 < ,20 < , , ,41 PRICES 14 / 18

Market 4 Remedies (Draft)  access to local loops ( LLU & SLU)  access to physical infrastructure  Subsidiary dark fiber  price control (cost orientation)  publication of reference offer (including SLA)  co-location and facility sharing  non-discrimination including quarterly notification of QoS KPI  Transparency including quarterly notification of QoS KPI  accounting separation and cost accounting 15 / 18

Market 4 Remedies (Draft) Feeder Sub Loop Backhaul Access Network TT OLO A OLO B End User COPPER LLUFIBER LLUVULADARK FIBERDUCT SHARING SUB LOOP  FEEDER  BACKHAUL ---  Street Cabinet MDF 16 / 18

Duct Sharing International Practices CountryObligation to provide access to ducts in the access network? Regulated duct sharing available from local exchange to: Street cabinetDistribution point or building entry point Austria ✔✔✔ Belgium ✔✔✔ Bulgaria ✔✔✔ Czech Republic ✘ Undecided Denmark ✔✔✘ Estonia ✔✔✔ Finland ✘ Not applicable France ✔✔✔ Germany ✔✔✔ Greece ✔✔✔ Hungary ✔✔✔ Ireland ✔✔✔ Italy ✔✔✔ Latvia ✘ Not applicable Lithuania ✔✔✔ Luxembourg ✔✔✘ Malta ✔ Not specified Netherlands ✘ Not applicable Norway ✔✔✔ Poland ✔✔✔ Portugal ✔✔✔ Romania ✘ Not applicable Slovakia ✔ Undecided Slovenia ✔✔✔ Spain ✔✔✔ Sweden ✘ Not applicable Switzerland ✔✔✔ UK ✔✔✔ 17 / 18

Turkish Broadband Market & Physical Infrastructure Access Market Mehmet İLERİ ICT Expert Information and Communications Technologies Authority