How is Turkey gaining global connectivity?

Erdem zsaruhan Borusan Telekom September 4, 2007

Agenda

Turkish Telecommunications Market The need for global relay for enhanced connectivity Strategies to cope with capacity constraints Exploring new markets is it the way forward? Few words about Borusan Telekom

Turkish Telecommunications Market

Turkey had a significant economic growth since 2002 (Ave. CAGR of 7% for the last 5 years) Market snapshot GDP: $364bn (2006) Population: 70.0m+ Fixed-lines: 20m+ Mobile subscribers: 53.4m Size of the Telecoms market: $13bn Rapid penetration in all segments. As of July 2007, the penetration rates were: 72% mobile 97% of fixed-line household 5.7% broadband (population) The total number of xDSL subsribers grew to 4m.

The need for global relay for enhanced connectivity

Current Picture in the fiber infrastructure of Turkey Turk Telekom is the owner of %99 of the fiber available in Turkey Infrastructure licences can be obtained by the region; there are 7 regions RightOfWay is an issue, so the licencees are interested to utilize the existing fiber of the state institutions State institutions are keen to open tenders to either lease their existing fiber or let their facilities be used to install fiber along (i.e. Highways, Electricity) Bid for the electricity (TEIAS) companys existing fiber has resulted with outrages bids. Turk Telekom won the bid for 2 fiber pairs with 10 Years usage rights between Istanbul and the Bulgarian border (300km) for $20m. A GSM company paid $18m for 2 fiber pairs between Istanbul and Ankara. Tenders for highways and railways are underway Major international players are already at the Bulgarian border waiting to cross the border if an alternative fiber other than Turk Telekoms will be available. Very limited alternative metro fiber is available, but is increasing rapidly No fiber to the homes yet

The need for global relay for enhanced connectivity

Global Connectivity is achieved through terrestrial cable systems through Bulgaria and Greece and through sea cables: MedNautilus and SMW-3 (45Gb) A protected STM-1 from Frankfurt to Turkey costs roughly $100K A half circuit STM-1 from Turkey to Syria or Iran cost roughly $300K STM-1 is the highest local loop capacity available by Turk Telekom STM-1 between cities in Turkey cost roughly $35K

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Alternative fiber by alternative operators is desperatly needed

Turkey can becaome a cross road between Europe - Middle East and the Caspian

Strategies to cope with capacity constraints: Exploring new markets

MedNau SMW-3

Opportunities with the Railway (10.000km)!

Borusan is one of the largest and most reputable conglomerates in Turkey

r et fo targ r nove d tur n USD e lidat illio 5,000 onso 0 is 5 b rc u 1 O 20

o al Gr Annu d poun Com 1,589
1,019 2003 2004

% = 28 Rate wth
1,952

3,000 2,351

691 2002

2005

2006

2007

2010

Total Revenue (USD Million )

Borusan Group Companies and Sectors

Steel

Logistics

Distribution

Telecommunications

Revenue Growth in 2006 vs 2005

Telecommunications
The Caterpillar Group

102%
25% 23% 23% 17% 7%

Borusan Mannesmann Boru Yatrm Holding

The Flat Steel Group Logistics The Pipe Group The Automotive Group

Borusan Telekom Services

Leased Line

Internet

xDSL Metroethernet Dial-up ISDN

Data Services
Virtual Private Network

VPN (MPLS)

Global Link Global IP-MPLS Global Internet

Global Data

Premium Internet Co-location Server Hosting

Services of Borusan Telekom

Virtual Server

Data Center Services

Domain Name Man. Web Hosting SAN/NAS Storage

Value Added Services

E-mail Hosting&Security Hardware Support

Corporate Voice

Tele/Video Conference WAN Management&LL Reselling Managed Security Services

Voice Services
SesMS Termination

SSL VPN IPS + Firewall Virus Wall, Spam Gateway

THANK YOU