Mehmet İLERİICT Expert

Information and Communications Technologies Authority

Turkish Broadband Market &

Physical Infrastructure Access Market

CONTENT

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BROADBAND MARKET ACTORS

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Broadband Coverage

Number of Subscribers

DSL Cable Fiber

% 99 (Pop.) %17 (HH) ~%14 (HH)

DSL Cable Fiber Other 3G

6.852.638 500.658 645.092 139.665 1.909.530

68,20% 4,98% 6,42% 1,39% 19,00%

end of 2012

end of 2012

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MARKET FIGURES

TREND IN FIXED BB PENETRATION

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Resale IP BSA nDSL LLU TOTAL %

TTNet

(Incumbent)341.671 4.954.590 649.590 - 5.945.851 86,77%

Alternative

Operators10.090 823.390 67.312 5.645 906.437 13,23%

TOTAL 351.761 5.777.980 716.902 5.645 6.852.288

% 5,13% 84,32% 10,46% 0,08%

xDSL ACCESS MODELS

end of 2012

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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 year7 / 18

Regulation Issuance date Implementation date

Duct sharing February 2009 December 2009

ISP Churn/ Bulk migration July 2010 October 2010

Naked DSL July 2010 December 2010

Wholesale Line Rental July 2011 February 2012

Fibre Access Decision October 2011 October 2011

COMPETITIVE SAFEGUARDS

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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

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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

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Physical Infrastructure Access Market (Market 4)

2011/1 2011/2 2011/3 2011/4

Copper 18.620.000 18.620.000 18.620.000 18.620.000

Cable 2.795.051 2.881.069 2.888.569 3.029.641

Fiber 797.358 1.073.463 1.488.569 1.986.857

2012/1 2012/2 2012/3 2012/4

Copper 18.620.000 18.620.000 18.620.000 18.620.000

Cable 3.032.512 3.151.392 3.163.091 3.179.043

Fiber 2.088.138 2.408.659 2.822.050 3.306.008

Homepass Numbers

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Fiber Subscriber Numbers

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Avaliable speeds and their distributionsADSL/VDSL Cable Fiber512 Kbit/sn 512 Kbit/sn 1 Mbit/sn1 Mbit/sn 1 Mbit/sn 3 Mbit/sn2 Mbit/sn 2 Mbit/sn 5 Mbit/sn4 Mbit/sn 3 Mbit/sn 10 Mbit/sn8 Mbit/sn 4Mbit/sn 20 Mbit/sn

16 Mbit/sn 5 Mbit/sn 24 Mbit/sn 24 Mbit/sn 6Mbit/sn 35 Mbit/sn 32 Mbit/sn 8 Mbit/sn 50 Mbit/sn35 Mbit/sn 10 Mbit/sn 100 Mbit/sn50 Mbit/sn 12 Mbit/sn 1000 Mbit/sn

100 Mbit/sn 15 Mbit/sn20 Mbit/sn40 Mbit/sn60 Mbit/sn

100 Mbit/sn

March 2012

December 2012

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xDSL FIBER

Speed

(Mbps)Quota (GB) FU (GB) Price (Euro)

Speed

(Mbps)Quota (GB) FU (GB) Price (Euro)

1 4 - 11,51 20 1 - 8,97

4 - - 40,77 20 2 - 10,69

<8 4 - 12,88 20 4 - 14,59

<8 6 - 14,16 20 8 - 16,74

<8 - 100 39,91 20 - 100 29,61

8 - - 51,07 20 - - 85,41

<16 5 50 14,16 50 12 - 25,32

<16 - 50 27,47 50 - 200 42,49

32 - 50 46,78 50 - - 171,24

50 - 100 46,78 100 16 - 38,20

100 - 100 63,95 100 - - 257,08

CABLE 1000 - 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

<10 20 - 16,74

<20 40 - 25,32

<40 80 - 33,91

<40 20 25,32

<60 20 29,61

<60 40 33,91

<60 80 - 38,20

<100 100 42,49

15 - - 63,95

20 - - 85,41

PRICES

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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

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Market 4 Remedies (Draft)

FeederSub Loop Backhaul Access Network

TTOLO AOLO BEnd User

COPPER LLU FIBER LLU VULA DARK FIBER DUCT SHARING

SUB LOOP FEEDER BACKHAUL - - -

Street CabinetMDF

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Duct Sharing International PracticesCountry Obligation to provide access to ducts in the access network?

Regulated duct sharing available from local exchange to:

Street cabinet Distribution point or building entry point

Austria ✔ ✔ ✔

Belgium ✔ ✔ ✔

Bulgaria ✔ ✔ ✔

Czech Republic ✘ Undecided Undecided

Denmark ✔ ✔ ✘

Estonia ✔ ✔ ✔

Finland ✘ Not applicable Not applicable

France ✔ ✔ ✔

Germany ✔ ✔ ✔

Greece ✔ ✔ ✔

Hungary ✔ ✔ ✔

Ireland ✔ ✔ ✔

Italy ✔ ✔ ✔

Latvia ✘ Not applicable Not applicable

Lithuania ✔ ✔ ✔

Luxembourg ✔ ✔ ✘

Malta ✔ Not specified Not specified

Netherlands ✘ Not applicable Not applicable

Norway ✔ ✔ ✔

Poland ✔ ✔ ✔

Portugal ✔ ✔ ✔

Romania ✘ Not applicable Not applicable

Slovakia ✔ Undecided Undecided

Slovenia ✔ ✔ ✔

Spain ✔ ✔ ✔

Sweden ✘ Not applicable Not applicable

Switzerland ✔ ✔ ✔

UK ✔ ✔ ✔

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Turkish Broadband Market &

Physical Infrastructure Access Market

Mehmet İLERİICT Expert

Information and Communications Technologies Authority