Eurasia 2008 - Exploiting telecoms market opportunities

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As you know, exploiting telecoms market opportunities in the Caspian Region and Central Asia is means that, EurasiaCom. EurasiaCom has really important headings for Eurasian telecommunication markets. The British organization Informa Telecoms and Media has a proven heritage of over 20 years of bringing together the mobile operator and vendor communities in a productive business-focused environment. This time all of them gathered in İstanbul Turkey on the 1st and 2nd of April 2008.
The mobile world of the Caspian region and Central Asia were in İstanbul for EurasiaCom 2008 in success of cellular communications services. Acision, Detecon, Huawei, Ulticom, Nokia Siemens Networks, Convergys, Sicap and ZTE were the sponsors of the event. Also, Telepati, the Monthly Telecom Magazine of Turkey was the official Media Sponsor of the conferences as usual. Building world-class mobile businesses, focusing on quality and simplicity to grow a mobile business, new telecom investments, deployment of telecommunication Networks and 3G networks, innovation and convergence strategies were some of the headlines of the conferences by VIP guest speakers representing many of the countries of this high-growth region.

JP Capital: Key service features, business plans, sell side and business cases for operators and vendors
Karl Johannesson, Managing Partner, J'Son & Partners;
Karl Johanesson emphasises the key service features, sell side and business cases for operators and vendors. Johannesson explained that, the market opportunities, strategies and J'Son & Partner's labors. Johanesson talked about the J'Son & Partners: “ J&P has been present in Russia since 1992. We have a local Office since 1996 and JP is the no1 Russian Hi-Tech consultancy. J&P presents important qualities like innovation, high quality approach, expensive data and field research, dedicated and devoted employees and client orientated throughout. JP Capital is the investment services arm of J'son & Partners. We are an active investment intermediary initiating and closing on transactions on the Russian hi-tech markets. JP focuses on smaller and medium sized deals. We work for seller buy side. JP Capital cover the entire spectrum investment services through our in-house staff and our industry network. This is backed by our analytical team providing equity research and analytical consultancy 50 hi-tech areas. J&P Capital compete successfully as we combine a superior understanding of hi-tech markets with investment banking and corporate finance skills. We focus on $5- 150 million deals.”
Johannesson also talked about the J&P's project references and hot segments: “JP Capital has more than 50 references for sales side transactions and supporting advise for sell side deals. Oral references subject to NDA and existing confidentially. JP Capital has more than 100 references for building and developing business cases for operators, system integrators and vendors across Russia , Central Asia and Eurasia . Oral references and disclosure subject to existing confidentially. JP Capital evaluate each investment opportunity according to multiple criteria such as management, competition, barriers, timing, Technologies, target group analysis etc. in hot segments. Our investment support services for buyers increase opportunities to enter a deal early and for sellers we increase and optimize evaluation if the business case in solid. JP Capital clients reads like who-is-who in Russian telecom, IT and media. J&P focuses on new segments of interest for clients.”

Türk Telekom bridges the continents
Mehmet C. Toros, Chief Commercial Officer, Türk Telekom
Mehmet Toros firstly indicated to ICT facts in Turkey in his keynote address. “There are more than 20 Million Internet users and 64 million GSM subscribers in Turkey . According to 2007 results, is the telecom sector size in Turkey 15.5 billion$. The result in ( shows that Turkey has the fastest growing DSL network in the world with increase 150%.” Toros gave some rates about the Internet usage in Turkey . “3.000.000 PC have been sold in Turkey in 2007. Even then, the PC Penetration in Turkey 26.7% house hold and 35% corporate. Turkish ICT market has a growth 20 billion$ and PC market more than 3.5 billion$. Turkish Broadband penetration in ADSL is 27.5% (Phone Line) and BB Coverage 92% in Turkey . Broadband access available in all of the cities and towns of the country. For 2006, the endorsement is 6.46 billion$. Also, shareholder of Avea which is the 3rd GSM operator of Turkey with 81% of the shares (10.5 Million subscribers).”
Mehmet C.Toros also pointed to the current status of data networks: “Türk Telekom has ATM Access at 175 POP points (more than 500 ATM switches), Metro Ethernet at 400 PoP points and LL Network Infrastructure accessible from all the cities and towns (81 cities, 900 towns). According to March 2008 results, has Turk Telekom 18.201.000 PSTN Subscribers, 21.200.000 PSTN Lines, 4.986.760 ADSL subscribers, 2500 Metro Ethernet users, 31.158 G.SHDSL clients, 86.000 Public Payphones and more than 112.000 Km F/O cable lenght.”
Türk Telekom Chief Commercial Officer Mehmet Toros informed about the new products and services. “Türk Telekom focused on IPTV, integrated Networks, value added services and broadband everywhere. Turk Telekom will start to IPTV test application at 3rd quarter of 2008 and this service will be integrated at 2009. Türk Telekom waiting for 1 million subscribers in short term. We will improve connectivity, reduce IP bandwidth costs and provide scalability for the domestic broadband boom. Türk Telekom is also planning to work on the converged services (voice over Wi-Fi and mobile network), new data services for corporate customers and public security, national and international IPVPN services and value added services. Türk Telekom's future horizon consist of integrated Networks, broadband everywhere and customer.”

Growth Strategies - Focus on the Revenue Stream
Ivan Pospisil, Senior Consultant, Nokia Siemens Networks
Ivan Pospisil presented growth strategies and solutions in his speech. Pospisil informed the delegates about market maturity drives operator focus. “There are three categories of countries in mobile and Internet penetration. Entry group countries have like Egypt, India, Indonesia, Pakistan and also African and Asian countries aggressive subscriber acquisition. They're rolling out Networks and building up sales and distribution. In managed growth countries category is continuing subscriber acquisition, improving network quality. It's easy to wider product portfolio. These countries are Turkey, China, Mexico, Czech Republic, Hungary, Saudi Arabia, Brazil, Poland, Russia and some Latin American, Eastern Europe, South African countries. The 3rd and more developed countries like US, Italy, Germany, France, UK, Hong Kong, Taiwan, Japan, Australia are positioning vs. Web 2.0 players and declining voice revenue.”
Pospisil explained the service strategies in four steps. “Implementing winning business models, introducing new differentiating services, managing the customer experience and opportunities in new segments are our service strategies. By 2015, we predict 5 billion people will be connected via mobile, wireless broadband or fixed broadband communication services. This means the number of global users will approximately double, with over 2 billion new customers making phone calls for the first time and worldwide data usage soaring to at least 100 times today's levels.To help you make the most of these new opportunities, we offer a solution-based approach based on insights and understanding gained through dialog not simply on products from a catalogue. Matching your unique circumstances and business challenges to our global consumer, operator and market knowledge, our committed team of highly skilled, experienced experts is dedicated to understanding your needs and creating the right solutions to make your business more competitive. We help our customers take advantage of this opportunity with a best-in-class solution and product offering underpinned by a unique services capability. Our aim is to set new standards for efficiency and innovation by marrying technical agility and innovation with global processes and presence. With our world-class fixed-mobile and services portfolio and global capabilities, we offer an unmatched breadth of knowledge and expertise in the telecommunications industry.”

Building world-class mobile businesses in Eurasia
Tayfun Çataltepe, Chief Corporate Strategy and International Expansion Officer, Turkcell
Tayfun Çataltepe mentioned to Turkcell's growth strategies. He gave some rates about the Turkey 's leading mobile operator Turkcell. “Turkcell has 35.4 million customers. Turkcell is with 57% leading the Turkish GSM market, then come Vodafone with 26% and Avea with 17%. In 2007 succeeded the Turkcell all of the active competition titles. These were major rebanding activities, aggressive acquisition offers, aggressive community and corporate tariffs, terminal bundled offers and communication activities to manage price perception. In 2008 focuses the market on regulatory challenges, mobile number portability and potential 3G tender process. Turkcell focused on new bussiness models which are healthcare, security, finance, advertising, media and education, so this business models bring about new Technologies which are software, web services and accsess. Turkcell is also growing up in new regions (Ukraine, Northern Cyprus, Azerbaijan, Kazakhistan, Georgia and Moldova).”
Çataltepe pointed to Eurasia growth. “The revenue growth reached 191% in 2007 and subscribers reached to 8.8 million with continued emphasis on simple and clear voice and data offerings. 2008 targets are to continue strong topline growth and building on positive EBITDA. Fintur subscribers (Moldcell, Azercell, Geocell, Kcell) grew 48% and reached 10.8 million, so the consolidated revenue increased 28%. As you can see remains Eurasia to be one of the most attractive regions for growing economies, comparably lower penetration rates in voice, vast opportunities in broadband and data. We believe that for sustainable growth, we should contribute to the future of the countries we invest in technology and social responsibility.”

Gain Your Network‘s Edge: Where Connectivity Meets Content
Osman Duman, Senior Vice President and Chief Marketing Officer, Ulticom
Ulticom , Inc. provides signaling solutions that link telecommunications customers to a rich variety of content and services. Senior Vice President and Chief Marketing Officer Osman Duman informed the delegates about the network's edge solutions. He specified that the will Web 2.0 applications control the future. Osman Duman also touched on the leveraging the subscriber relationship and eco-system benefits. “Carriers have long enjoyed a close relationship with and the trust of their subscribers, they have a level of knowledge of their subscribers that Google would love to have personal data (Name, Address, Gender, Profile), devices (SIM, Serial No, IP Address), context (Presence, Location, Roaming, On/Off, Active/Idle), interactions (Navigation History, Telephony and Messaging Usage), more personal data (Likes/Dislikes, Calendar, Pictures, Videos). This relationship has created a vast, unrealized opportunity for carrier, content provider, and subscriber alike. Consumers can simplify their access methods to consolidated value added services with the assurance that their identity is being managed by a trusted partner, their carrier. Enterprises can use bootstrapping technology hosted by wireless carriers to offer easy yet secure mobile access to corporate resources. Carriers can leverage the value of their network along with strong subscriber relationships to provide trusted identity management services to content providers in a way that protects subscriber privacy. Content providers can increase their served market by partnering with carriers to offer wide varieties of profitable, value-added services and content to the carrier subscriber base. Network equipment providers can expand their product portfolio by offering an edge solution which fits seamlessly into carrier networks to quickly open up new profitable lines of business. Handset manufacturers can further elevate the device revolution by offering a secure interface to a vast network of content and services. Carriers need to think about making money before and after the user makes a call or sends a message; not just during advances in mobile handsets are particularly creating an opportunity for mobile carriers to exploit their value. Scale current network higher via acquisition of facilities/customers, and attractive loyalty generating mass-market service bundles. Leverage and expand on subscriber relationships via identity management and managed access to Long Tail of services.”

Strategy of Alignment, Innovation and Convergence
Faruk Karagöl, Mobile Technical Director, ZTE Turkey
ZTE Turkey Mobile Technical Director Karagöl instructed about ZTE. “ZTE is leading global provider of telecommunication equipment and network solutions. ZTE improves wireline, wireless, terminal, and services products. We have partnership with over 500 operators in more than 120 countries worldwide. ZTE has 15 R&D institutes in China, USA, Sweden, India, Pakistan, and France. ZTE's provides low cost solutions reducing Service Providers' Expenditures and differentiated, hard to imitate products portfolio brings many advantages to service providers. ZTE is giving customers more value for the money by incorporating good-
to-excellent product attributes at a lower cost than rivals and the real target is to have the lowest (best) costs and prices compared to rivals offering products with comparable upscale attributes. The five competitive forces that shape the strategy which are threat of new entrants, power of customers, power of suppliers, threat of substitutes products and competitive rivalry. Strategies must be in align, innovate, converge frames. Nowadays are short term and long strategy concepts very important. Short-term is reactive and necessary. You have to reinforce your day-to-day policies, tactics and operational procedures just to find what your customers want. Long term is proactive and necessary for the sustainability of business. Focuses on new relationships with new customers, but long-run is riskier due to time concern. Companies have to be careful that their long term and short term strategies must be different.
Everybody can contribute to innovation process in the company. Business model innovation involves changing the way business is done in terms of capturing value and process innovation involves the implementation of a new or significantly improved production or delivery method. Product Innovation involves the implementation of a new or significantly improved production or delivery method so is service innovation similar to product innovation except that the innovation relates to services rather than to products.
ZTE presents permanent solutions: Future Oriented Unified Platform (3G), Unified Core Network Platform (core network), Unified Radio Network Platform.

Huawei's innovation for Mobile Network Evolution
Tufan Ünal, Marketing Director, Turkey , Huawei Technologies
Tufan Ünal pointed to raising demands in mobile market and Huawei's long-term mobile infrastructure strategy in his speech. Ünal specified that importance of demanding ubiquitous mobile services. “Any service through any access in anytime and anywhere” said Mr. Ünal and explained: “Innovation will come in the mobile field with convergence, broadband, evaloution and green. Convergence is a bridge standard gap to adopt technology at your choice, broadband is pave the way for the mobile internet era to enhance future competitiveness, evaloution meets development trend to guarantee smooth evolution and shape E2E green network is very important to realize energy saving and environmental protection. Convergence brings unified 4th Generation Base Station which is united IP platform for 2G BTS, 3G Node B, future LTE evolution, as well as CDMA and WiMAX. This system benefits for operators about smooth network evolution, to reuse all hardware, just software upgrade and unified O&M to lower OPEX. Huawei's long-term investment strategy is on Mobile , FMC, ALL IP and to accumulate overall advantages in terms of fixed network, mobile network and IP. Huawei has 12 R&D centers globally and in this centers more than 10.000 R&D engineers dedicated in the mobile network innovation. Huawei also has more than 8,000 patents in mobile communications technology worldwide and partnership with leading technology companies.”

Exploring key trends in the evolution of the Eurasian market
Gemma Bunting, Research Analyst, Informa Telecoms and Media
Gemma Bunting clarified some important questions with real rates about global telecommunication market. The subjects were: “Where is the global market today?, development of Eurasia 's mobile market, investment footprint throughout the Eurasian region, What are Eurasia 's options beyond 2G? Current status of 3G/WiMAX in the region and Predictions for development across the region.” Bunting presented global subscription development and global market share to the end of 4th Quarter of 2007. “In July 2007 was reached 3 billion subscriptions and in 2007 record net adds of 625 million. According to results the end of 4th Quarter 2007 is the leader of global telecom market share Asia Pacific with 42%, Western Europe took second place with 14% and then East Europe and Americas third with 11%. Eurasia ( Armenia , Azerbaijan , Georgia , Kazakhstan , Kyrgyzstan , Tajikistan , Turkey , Turkmenistan , Uzbekistan ) has only 3% market share rate but its increasing. When we look at the top 10 global investors, is China Mobile CC took first with about 275 million subscribers, Vodafone has the second place with about 230 million subscribers and China Unicom is in the their place with about 170 million users. America Movil, Telefonica SA, Deutsche Telekom , France Telecom, MTS, Telenor and AT&T Inc is in order top 10. And only top 10 investors account for 43% of global subscriptions. Eurasian mobile market share like this: Turkey 66%, Kazakhstan 14%, Uzbekistan 6%, Azerbaijan 5%, Georgia 3%, Kyrgyzstan %2, Tajikistan 2%, Armenia 2% and Turkmenistan 0,4%. Subscriptions increased by 70% in 2007 and penetration reached 40%. Subscriptions forecast to reach approximately 40 million by the end of 2008.
Uzbekistan is one of fastest growth rates in Eurasia with 121% in 2007 and penetration forecast is 30% at the end of 2008. There is a strong market competition in Uzbekistan . Kyrgyzstan has also a strong growth in 2007 with 110%. It's suitable for potential investment opportunities. Penetration forecast is 55% at the end of 2008. In Eurasian countries is the penetration rates remain low, but the only way is up. Subscriptions forecast is to hit 37 million at the end of 2008 (105 million including Turkey ). Investment opportunities remain but time is of the essence. Future WCDMA licences and deployments expected 2008/2009. There is increasing demand for high speed Internet services and potential for WiMAX uptake in absence of WCDMA/HSPA.

Magticom 3G (UMTS)
David Lee General Director, Magticom , Georgia
David Lee mentioned about Georgian telecom market, 3G and Magticom. “Magticom network covers over 97% of the populated territory of Georgia . Magticom commenced operating on 900 MHz frequency band. In November 1999 Magticom became the first GSM operator in Georgia to move to the dual-band system - GSM 900/1800 MHz, which was determined by the intention to improve the service quality.
Mobile penetration in Georgia is around 58%. There are 2,600,000 mobile phones in Georgia and around a tenth of the mobile phones is 3G capable. There are 460,000 PCs and only 322,000 households enjoy Internet access majority of Internet users are high-speed and based in the capital Tbilisi . there are around 575,000 fixed line subscribers in Georgia . Three WCDMA licensees have been issued in Georgia , two of which belong to MagtiCom and one to Geocell. All three licenses were issued by means of open auction. In total MagtiCom has paid $26,889,422 (the first license was purchased in 06/09/2005 and the second one in 25/04/2006). Geocell paid $12,460,715 in 06/06/06.
In 2005 Magticom started to build the first Third Generation network in Georgia to offer the 3G services. As a result, in summer 2006, first time in Georgia , the Company launched the new generation services along with the full range of GSM ones. Those 3G services were Magti Video Call, Magti Mobile TV and Magti High-speed Internet.
During recent years Magticom has been the biggest company operating in Georgia, both with respect of its contribution made to the economy of the country and the number of subscribers: Magticom is the first Georgian private company in the history of independent Georgia that contributed more than 580 million Lari to the economy of the country within the 10 years' period of its operation.
By means of its two brands Magti and Bali Magticom now renders service to one third of the population of Georgia ; the number of customers is permanently increasing.”

New Telecoms Invest New Telecoms Invest Opportunities in Iran
Lutfullah Sabouhi, Deputy of regulations and License Issuance CRA of I.R.Iran;
Sabouhi presented everything about the telecom market of Iran in his speech. “Population is in Iran now 71 million and Population growth rate is 1.55%. Estimated population is in 2021 89 million and estimated mobile subscribers is in 2021 89 million. It means 100% penetration rate. Existing mobile subscribers are 36 million and penetration rate is %50. Expectations for at the end of 2008 are about 44.75 million subscribers and % 62.5 penetrations. Iran 's leading mobile operator MCCI has 25 million subscribers and Irancell has 10 million subscribers. Minimum need will be 53 million new subscribers in next 15 years so that is a great demand for value-added services. We're waiting for third operator because there is a big market and demand for mobile in Iran , providing opportunity for interior and foreign investments. General principles of the third mobile license conditions simplify the investments. When we look at the broadband market in Iran are there 12.5 million Internet users (penetration rate %17) and 7 million broadband ports (Penetration Rate %10). ADSL license has been issued for 11 Operators. Private sector demand for offering WiMAX based services and estimating 1.5 million users for WiMAX Services in next 10 years. As a conclusion, Iran is one of the most populated countries of the region and Iran 's penetration rate is still low. Most of the population are youth (almost %70 are between 15 and 64). Liberalization and privatization is in the beginning phase, so there is a huge telecom investment opportunities in Iran .

Effective Strategies for Delivering Profitable Growth in Maturing Markets
Paul Jesemann, CTO Europe and Africa , Acision
Jasemann pointed in his presentation that the changing telecommunication expectations and transformation of telecom for growth. ”The world had limited telecommunication applications that were like basic services voice, SMS and MMS. These were provided direct revenues for operators. At the present time causes development broadband and mobile technologies more and more expectations for mobility and ease for use. Subscribers can make everything with their handsets in their lives and they want to do more. In this situation appears the differentiation which included innovate on SMS and MMS channels, mobilise Internet applications, hybrid revenue streams and open up to third party services. When the concepts which are technology, consumer understanding and innovative business models
and value chains. Value-add across categories goes to transform for growth. Innovate (own) mass communication services and to support mobilisation of Internet services are important to create a breeding place for the niches and to have the capabilities to manage increasingly complex chain and charge for it.

Mobile Entertainment Solutions
Elvan Konedralı Süzer, CEO, UCT Group
In Eurasia Com was also made a conversation with Elvan Konedralı Süzer, about Turkish mobile market and mobile entertainment. She gave some information about United Cellular Technologies Companies Retromedia and Trend-Tech. “We have consistently focused its strategy on developing high-quality mobile products and services, while generating a healthy revenue stream by working with many of the world's leading and most innovative mobile operators, service providers and TV networks. We worked on infrastructure with Internet providers like Superonline and Ixir. We're working on the value-added services with all three operators (Turkcell, Vodafone, Avea). We aim to be the global leader company to develop and integrate high quality Mobile Internet and Messaging technologies for providing efficient and optimized services to the Mobile Information Society.
In this wise are we developing mobile Internet infrastructure. We predict that after the number portability agreement will 3G come to our country at the beginning of 2009. 3G will bring a lot of entertainment objects to the market. This means more application, more mobility and more fun. Turkey's population is 71 million and most of the population are youth (almost %61 are between 15-64). Youth people are using Internet strongly. Turkish people are following nearly all the technological developments. MSN and Facebook using in Turkey indicates this interest. Internet usage develops the advertisement and 3G will supply mobile Internet and advertisement. As you can see, all of these things are connected by each other.”