© 2008 oger telecom limited. all rights reserved. this document is confidential and proprietary....

© 2008 Oger Telecom Limited. All Rights Reserved. This document is confidential and proprietary.

Oger Telecom November, 2008

Hakam KanafaniChief Business Development Officer, Oger Telecom


Oger Telecom – Key highlights

• Access Lines: 18.2m

• ADSL Subscribers: 4.5m

• Revenues*: US$6.0bn(1)

• EBITDA*: US$3.0bn(1)

• Subscribers: 9.9m

• Market Share: 16.2%

• Revenues: US$1,3bn(1)

• EBITDA: US$234m(1)

• Subscribers: 5.1m(2)

• N/A

• Revenues: US$1.1bn(3)


• N/A

• N/A

• Revenues: US$30m(4)


2007

2007

2007

2007

54.5% 44.2% 75% 95%

81%

(1) 2007 average exchange rate used: YTL/USD=1.3008.(2) Including CSTs. (3) 2007 average exchange rate used: ZAR/USD=6.8616(4) 2007 average exchange rate used: SAR/USD=3.762.(5) Pro-Forma for full consolidation of Oger Telecom, OTAŞ, Türk Telekom, TTNet, Avea, Cyberia, OTMSC.(5) Using actual FX rates for 2005, 2006 and 2007Note*: Turk Telekom financials above are standalone, excluding mobile business Avea

Financial Highlights

OTL Revenue (US$ billion) (5) OTL EBITDA (US$ billion) (5)

7.1 6.98.2

2005PF 2006PF 2007

3.0 2.93.3

42.8% 41.8% 40.2%

2005PF 2006PF 2007

Proforma EBITDA EBITDA Margin

2


Human Kind’s greatest leaps happen when we experience inventions and developments relating to:

1- Mobility (to move) wheel, oil, construction equipment, mobile weapons, cellular, flight, auto…and divorce!

2- Business Model (how to pay, what to get for something), barter goods, money, banks, credit cards and subprime mortgages.

3


Democratic Republics

Social Democratic

Anarchist Arab P

olitics

Liberal

Socialist

Nazi/Fascist

Conservative

Dick CheneyCommunism Capitalism

The Business Model…How to Pay? How Do we generate Profits:


SMSSMS

The lowest form in the technology evolutionary

chain

Superior Technology, is not necessarily the winning technology

Source: IDC

MMSMMS

A higher form on the technology evolutionary

chain


Mobile WiMAX

DSL

Cable Modem

FTTxWiFi

WiMAX802.16d

LTE

EV-DO

HSPA

Fixed Portable Mobile

The Broadband Ecosystem — Multiple Technologies Coexist


The Business Model will ALWAYS trump superior technology….

CONVERGENCE:How to optimize the new combination between mobile technologies, content and wire-line with a tempting business model.

So, what’s up with Wimax?

7


Clear Value proposition

Look at developing markets, not developed ones.

• Available & ready, lower capex alternative

• Incumbents will head to LTE

• New entrants will do WIMAX

• No clear Devt path

• Many challenges ahead

• Not tested in highly populated areas, with heavy traffic

• Forecast 2% of total mkt in 2015

OK, to do WlMAX look at:

– Competitive differentiator, particularly against industry leaders

– Forget price wars

– Focus on service availability and quality of service

– Focus on niche, verticals and enhance convenient provisioning and billing

Watch OUT!

• There must be clarifications on evolution path as well as availability of CPE’s

• What are the associated time lines?

• Regional/local networks serving tier 2 & smaller cities, rural/remote areas

• False short term wins vs incumbent based on price cuts

• WIMAX as a substitute for mobility

• WIMAX is a building block in a greater scheme, not the holy grail.

• Don’t fascinate customers with technology. Give them value and show them what they can do with solutions.

Source: IDC

WiMAX Services — Business Models


Disruptive technology—is WiMAX a threat?

9

-

0

200

400

600

800

1000

1200

2005 2006E 2007E 2008E 2009E 2010E

(In

Milli

ons)

0%

5%

10%

15%

20%

25%

30%

New WiMax Connections

GSM + WCDMA Handset Shipments

New WiMax Connections as % of GSM/WCDMA Handset Shipments

New WiMax Device Shipments Immaterial vs.

GSM / WCDMA Devices, 2006–2010E

Source: Broker Reports


Evolution of the number of wireless revenue by technology

Source: Analysys Mason Research

0.0

1.0

2.0

3.0

4.0

5.0

6.0

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Cu

sto

me

rs (

bill

ion

)

2/2.5G 3G EV-DO HSPA

HSPA+ LTE WiMAX

Evolution of the number of wireless users by technology

0

200

400

600

800

1,000

1,200

1,400

1,600

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Re

ven

ue

s (U

SD

bill

ion

s)

2/2.5G 3G EV-DO

HSPA/HSPA+ LTE WiMAX

Globally, wireless users are expected to grow to 5.1 billion by end of 2015, only 2% of which will be WiMAX

Source: Analysys Mason Research

© 2008 oger telecom limited. all rights reserved. this document is confidential and proprietary....

Documents