Turkcell Marketing Strategies

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  • Topic: Mobile phone, GSM, Mobile technology
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Turkcell Marketing Strategies

Management
Brand Analyzing : Turkcell

Turkcell’s History

GSM-based mobile communication started in Turkey when Turkcell started its operations in February 1994. Turkcell signed a 25-year GSM license contract on April 27, 1998 with the Ministry of Transportation of Turkey. Since then, it has continuously increased the variety of its services based on mobile audio and data communication, its quality levels and as a result, number of subscribers. As of December 31, 2007, Turkcell has made 8,0 billion US dollars worth of investment in Turkey, which doesn’t include the price of the license. Again as of December 31, 2007, with its 35,4 million subscribers, Turkcell is not only the leading operator in Turkey, but is also the second biggest GSM operator in Europe in terms of subscriber numbers. Its competitors are Vodafone with a market share of 24% and Avea with a market share of 16% in Turkey.

Financial Analysis of Turkcell

Turkcell's shareholder structure is as follows: 51% is held by Turkcell Holding A.Ş., 4.15% by Çukurova Holding A.Ş., 13.07% by Sonera Holding B.V., 2.32% by MV Holding A.Ş., and the free float is 29.38%. Çukurova Group controls the company despite holding only 18% of the share capital, due to a complicated shareholding/voting structure.

Turkcell’s shares have been traded on Istanbul Stock Exchange (IMKB) and New York Stock Exchange (NYSE) since July 11, 2000 and it is the first and only Turkish company ever to be listed on NYSE.

Below is the Turkcell’s stock diagram is IMKB with some informations such as listing date etc.

Symbol Last Trade
16:01 19 May
NYSE
Only Close
19 May 08
ChangeVolume
TKC$ 19.1719.17+0.23 (+1.21%)2,784,982
Industry*Mobile Telecommunications
Issue TypeADS Common
Country of OriginTurkey
Listing date11 Jul 2000 (IPO) (ADR)

Turkcell’s Fintur subsidiary is a holding company for its non-GSM and international GSM investments. These investments include Azercell, a provider of mobile services in Azerbaijan, Geocell, a provider of mobile services in Georgia, GSM Kazakhstan, a provider of mobile services in Kazakhstan, and Moldcell, which provides mobile services in Moldova. The company also has operations in Iran, Cyprus, and Ukraine. The Astelit company that Turkcell holds the majority shares of in Ukraine, started its operations in February 2005 with its brand life:) . Life:) has reached 8,0 million subscribers as of December 31, 2007.

Other Turkcell businesses include Bilisim, a provider of educational services over the Internet and television, Global, a telemarketing company, Turktell, a marketing company, Inteltek, a gaming company, and Libero, a betting company.

Turkcell operates under a license where by the company pays the Turkish Treasury a monthly fee equal to 15% of gross revenue.

Turkcell, as the leading operator of Turkey and nearby regions, entered the Board of Directors of GSM Association in early 2003. With more than 700 members from 217 countries, and 2 billion subscribers represented by these members, GSMA speaks for the world mobile communication market. Its Board of Directors, consisting of 23 people, has some of the world’s leading GSM operators like Vodafone, Orange, NTT DoCoMo, AT&T Wireless as well as Turkcell. The GSMA leads and coordinates the international GSM industry, brings together operators and mobile phone manufacturers, application developers and content/service providers onto the same platform. Through its position in GSMA, Turkcell is able to follow up on the global developments very closely and plays an active role in the establishment of the new global strategies.

Turkcell, with its wide coverage area and its large variety of services abroad is able to provide its subscribers with mobile communication services in Turkey and around the world. With its investments, Turkcell now covers all the settlements in Turkey that have a population of more than 3000. As of May...
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