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

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

3. 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

4.  Broadband Coverage  Number of Subscribers DSLCableFiber % 99 (Pop.)%17 (HH)~%14 (HH) DSLCableFiberOther3G 6.852.638500.658645.092139.6651.909.530 68,20%4,98%6,42%1,39%19,00% end of 2012 4 / 18 MARKET FIGURES

5. TREND IN FIXED BB PENETRATION 5 / 18

6. ResaleIP BSAnDSLLLUTOTAL % TTNet (Incumbent) 341.6714.954.590649.590 -5.945.85186,77% Alternative Operators 10.090823.39067.3125.645906.43713,23% TOTAL 351.7615.777.980716.9025.6456.852.288 % 5,13%84,32%10,46%0,08% xDSL ACCESS MODELS end of 2012 6 / 18

7. 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

8. 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

9. 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

10. 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

11. Physical Infrastructure Access Market (Market 4) 2011/12011/22011/32011/4 Copper18.620.000 Cable2.795.0512.881.0692.888.5693.029.641 Fiber797.3581.073.4631.488.5691.986.857 2012/12012/22012/32012/4 Copper18.620.000 Cable3.032.5123.151.3923.163.0913.179.043 Fiber2.088.1382.408.6592.822.0503.306.008 Homepass Numbers 11 / 18

12. Fiber Subscriber Numbers 12 / 18

13. 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 2012 13 / 18

14. xDSLFIBER Speed (Mbps) Quota (GB)FU (GB)Price (Euro) Speed (Mbps) Quota (GB)FU (GB)Price (Euro) 14- 11,51 201- 8,97 4-- 40,77 202- 10,69 <84- 12,88 204- 14,59 <86- 14,16 208- 16,74 <8-100 39,91 20-100 29,61 8-- 51,07 20-- 85,41 <16550 14,16 5012- 25,32 <16-50 27,47 50-200 42,49 32-50 46,78 50-- 171,24 50-100 46,78 10016- 38,20 100- 63,95 100-- 257,08 CABLE1000-5000 428,76 <1-- 12,45 All taxes are included Source: TTNet, Turkcell Superonline ve Türksat June 2012 <3-- 21,03 <5-- 29,61 <10-- 42,49 <1020- 16,74 <2040- 25,32 <4080- 33,91 <4020 25,32 <6020 29,61 <6040 33,91 <6080- 38,20 <100100 42,49 15-- 63,95 20-- 85,41 PRICES 14 / 18

15. 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

16. 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

17. 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

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