1. Broadband in Turkey: From Regulator’s Perspective Dr. Muhterem ÇÖL Head of Tariffs Department

2. Content  Broadband Figures  Regulatory Environment Wholesale Broadband Regulation  Conclusive Remarks 2

3. Broadband Figures 3 Number of Broadband subscribers and penetration

4. Broadband Subscription by Technology 4 Broadband Figures DSL DSL

5. Household Broadband Penetration 5 Broadband Figures

6. Wholesale Broadband Models DSLAM (1) (4) Unbundled Local Loop 1st Approval of RUO in November 2006 2nd Approval of RUO in February 2009 Tariffs Revision in August 2007 and June 2009 First Lines in January 2008 İSS BRAS (1) Resale Tariff Approval in 2004 Agreement in December 2004 Reference Offer in July 2007 (2) IP Level BSA Tariffs Approval in 2005 Agreement in February 2007 1st Reference Offer in July 2007 (3) ATM Level BSA Reference Offer came into force in July 2009 (2) (4)(4) (3)(3) Regulatory Environment

7. 7 Access Type # of agreements RESALE26 IP BSA1313 LLU9 Regulatory Environment Wholesale Broadband Models RESALE - 2004 IP BSA - 2005 LLU - 2006

8. Naked DSL 8 PSTN Exchange PSTN Services Splitter DSL Modem MDF Splitter DSL AM Broadband xDSL Provision of DSL access w/o PSTN subscription  Naked DSL surcharge: € 3.7  Subscribers are € 1.8 to € 5.5 better-off per a month Regulatory Environment

9. 9 Number of Naked DSL Subscribers

10. Switching and Bulk Migration 10  Switching  Switching - between ISPs  Max. Service cut-off period 2 hours (3 hours for specific cases)  Max. 4 times per year  Bulk Migration -  Bulk Migration - among Wholesale Access Models  Resale→ BSA Resale→LLU  BSA → LLU Regulatory Environment

11. Switching and Bulk Migration 11 Cumulative Increase in # of Switching Subscribers Regulatory Environment

12. Switching and Bulk Migration 12 Cumulative Increase in # of Subscribers of other ISPs Regulatory Environment

13. Conclusive Remarks 13 Opportunity for growth BROADBAND Unsaturated BB Market, ~12% penetration 74M population, TURKEY Contribute to BB penetration Naked DSL SWITCHING and BULK MIGRATION COMPETITION Contribute to Competition Better Quality Services Investment

14. THANK YOU Dr. Muhterem ÇÖL Head of Tariffs Department