Date: April 2010

Outlook:Mobile and Fix Sector

Developments

Content

About Invitel International

Potential Growth Opportunities: – Mobile Market– Fix Market

Outsourcing

Mobile VAS and Data Services

Invitel International

Infrastructure operator and wholesale carrier delivering telecommunication solutions across the entire European region and Turkey.

Focus:

Internet/Data communications services

Infrastructure services

Wholesale Voice Services

Unique and extensive network coverage:

40+ major points of presence in 19 countries

23,000+ route km of fiber, totally 40,000+ km reach

4,000+ km of fiber in Turkey

Invitel International Network

Potential Growth Opportunities

Mobile market outlook in TR•High penetration, high subscriber base•Very competitive market: Turkcell leading, Vodafone and Avea following•Competition mainly on tariffs and subscriber programs•3G: On Air•Mobile data usage increasing•VAS growing slow

Fix market outlook in TR•Turk Telekom biggest player in voice and data: As usual•Fix voice market is not growing•ADSL market growth slowed•Alternate operators are not growing•Price competition between fix and mobile voice.•Competition between fix data and mobile data is growing

Potential Growth Opportunities

Mobile market:•3G VAS services and mobile applications•3G operator services•Multi dimensional convergence: fix/mobile – voice/data – Telecom/media•Increasing data and voice usage demands reliable, robust, scalable infrastructure services

Fix market:•FTTH: A new paradigm in TR: growing slow•F/O infrastructure services: local/international – carriers/corporate•Datacenter and telehousing solutions•Cloud computing

No clear roadmap for Wi-Max

No clear revenue model or business case for Wi-fi services

Out sourcing (opportunities)

•Operation and maintenance services outsourced‒ To group companies versus to contract based‒ As service level and usage demands increase, outsourcing improve

•Software development– Operator services– CRM– VAS and security services

•Co-location, hosting

•Infrastructure services

VAS Services for Mobile

Key points to be considered for a growing VAS market place:

•VAS services boomed in 2&2.5G. Especially SMS and funtainment.• Recently consumption slowed down: Momentum of new services is lacking•No doubt TR people enjoy VAS•Cost and simplicity are two main issues•Requirement-1: Rhythm & the pace of innovation and development •Requirement-2: Low cost, effective, innovative, continuous marketing efforts•Mutual services with alternate sectors and brands•Operator support definitely needed

•3G launch: a late entry to the market•3G VAS services and mobile applications are increasing•Convergence with web services.

Data Services for Mobile

Key points to be considered for a growing Mobile DATA market place:

•Unique value proposition: High speed access anytime-anywhere•Introduced in GPRS/EDGE era. Public awareness already established•Early adapters: Corporate users•Cost, simplicity and price models are critical criteria •Non-portability nature and subscripion processes of ADSL•Still things to do for better addressing gamers and high data users•Attention to Infrastructure capacity problems as in some countries•Another usage profile: As a spare access when fixed or Wi-fi access missing•Operator support and commitment definitely needed•Security, mobility, portability and ubiquity are important

•Thin client computing: Applications and devices will leverage