Turkcell

MVNO Strategies
MVNO
Strategies to Generate
to Generate
Revenue and Capture
p
New
Market Segments
Oytun Yavuz
Oytun Yavuz
MVNO Networking
MVNO
N
ki Congress’10
C
’10
Barcelona, SPAIN
Introduction
Oytun Yavuz
MVNO Business Leader
TURKCELL
HQ, Istanbul Turkey
Tel: +90 532 210 28 77
E‐mail: [email protected]
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y
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Agenda
g
•
•
•
•
•
3
About Turkcell
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach To MVNOs
Turkcell Approach To MVNOs
Agenda
g
•
•
•
•
•
4
About Turkcell
About Turkish Market
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach To MVNOs
Turkcell Approach To MVNOs
Turkcell
¾ Leading operator in Turkey
¾ Customer Base: 33.9 Mio
Base: 33 9 Mio Subs*
¾ Revenue: ~5 Billion €*
¾ Ebitda Margin: 33%*
¾ Shared on New York Stock Exchange (NYSE)
9 the first and only Turkish company ever to be listed on NYSE
* Source: Press release as of Q3,2010
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Turkcell International
Best – Belarus
Life – Ukraine
KKTCELL – N.Cyprus
Kcell – Kazakhstan
Azercell – Azerbaijan
Geocell – Georgia
Moldcell ‐ Moldava
Continue to search new opportunities
pp
of becomingg an MNO / MVNO.
/
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Turkcell Group
p Subscribers
Operator
Country
Subs
b (Million)*
TURKCELL
Turkey
33.9
Best
Belarus
12
1.2
Life
Ukraine
9.8
KKTCELL
N.Cyprus
0.3
Kcell
Kazakhstan
8.4
Azercell
Azerbaijan
4.1
Geocell
Georgia
1.9
Moldcell
Moldova
0.8
TURKCELL GROUP
WORLD
60.4
* Source: Press release as of Q3,2010
7
Owned MVNO in Germanyy
Now expand from Istanbul to Berlin
Agenda
g
•
•
•
•
•
9
About Turkcell
About Turkish Market
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach To MVNOs
Turkcell Approach To MVNOs
Market Shares
18%
TURKCELL
27%
55%
VODAFONE
AVEA
* Source: Operators’ announcement as of Q3,2010
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Mobile Penetration
¾Mobile penetration rate had rapidly increased until Mobile Number Portability.
¾MNP reduced the penetration rate to 85% due to the decrease of second lines.
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Agenda
g
•
•
•
•
•
12
About Turkcell
About Turkish Market
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach To MVNOs
Turkcell Approach To MVNOs
Potential Strategies
g for MVNO Market
13
Cheaper
p Prices
¾Difficult for voice, 9due to strong price wars
¾ARMU’s are going down
9due to bulk free minutes
¾Maybe
y achieved byy onlyy
9reducing operational costs
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Reducingg Operational
Costs
p
Easier
Low Cost
Low Cost
Niche
Acquisition of
Sales
Call Center
Marketing
Subscribers
Operation
Services
Activities
Enable MNOs and MVNOs more profitable
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Simplicity
p
y
Covers limited
necessities
Single
Rates
for all
Unit prices are really
diff
t for
f Voice, SMS and
V i SMS d
different
Data
Simple
Tariffs
iff
Only
O
l
Prepaid
Lines
Easy Offer Communication
16
Prepaid subs
subs’ taxes
taxes are
covered by operators
Focused on VAS
Mobile Payment
SSocial
i l
Networks
Game
G
World
Location Based
Services
More intersection of these is the better value proposition.
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Focused on Converged
g Solutions
Convergence
18
Total Telecom
Service Providers
Offer Non Telecom Benefits
Supermarket
Oil Gas
Useful benefits for
subs’ life.
Education
Health
MNO can create different value propositions by MVNO/Sub Brand
partnering
t i with
ith a company comes from
f
a different
diff
t sector.
t
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Agenda
g
•
•
•
•
•
20
About Turkcell
About Turkish Market
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach To MVNOs
Turkcell Approach To MVNOs
Opportunities
pp
In Turkish Market
¾ Double Taxation has just lifted for MVNO’s.
¾ But there is no any regulatory arrangements for MVNO But there is no any regulatory arrangements for MVNO
market.
¾ Several candidates (~20) were granted with the mvno
licence by the authority.
¾ Year 2011 may be the starting year for MVNO market.
¾ First movers may have an opportunity for generating
revenue and capturing
p
g new segments.
g
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Agenda
g
•
•
•
•
•
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About Turkcell
About Turkish Market
About Turkish Market
Potential Strategies for MVNO Market
Opportunities In Turkish Market
Turkcell Approach to MVNOs
Turkcell Approach
Turkcell Approach
pp
to MVNOs
¾ We believe that MVNOs
W b li
h MVNO can generate revenue and
d
capture new segments for MNOs.
• which recognize the dynamics of the mobile communications market • which cover the needs and wants of the target customer groups
needs and wants of the target customer groups
¾ We established the We established the “MVNO
MVNO Business
Business” unit within Turkcell unit within Turkcell
• to support and share our know‐how and experiences with the potential MVNOs
• to seek for win‐win situations.
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IT
NETWO
ORK
STRATEG
GY &
REGULATTIONS
FINANCE
MARCOM
M & SALESS
MVNO Business
CORPOR
RATE
BUSINEESS
CONSUM
MER BUSINEESS
Dedicated Internal Department
p
Planning
Engagement
Enablement
Management
It provides a competence to become all functions together as a team.
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Thank You
Oytun Yavuz
MVNO Business
[email protected]
+90 532 210 28 77