This presentation involves hot Value Added Services topics, focusing on content services. It was prepared in Mar 2011 for VAS Growth Markets 2011 event in Dubai.

1. How to succeed in Content Services Business
-TR Case Studies-
Apr 4th, 2011
Baris Akkaya, Content Services Manager
@

2. Agenda
 VAS and Content Services: Global Outlook
 About AVEA
GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

3. Global Outlook: VAS
%60 of time spent on Smartphones are new activites and majorly content-based.
Source: AppsFire, Jan 2011

4. Global Outlook: VAS
Mobile Gaming
Mobile Music
Source: ComScore, Dec 2010

5. Global Outlook: Content Services
Source: JRC European Commission – Feb 2009
• Mobile Music and Mobile Game to lead the content business in the mid-term.
• Mobile Advertising and Mobile TV to recover, but will not be the main drivers.

6. Agenda
 VAS and Content Services: Global Outlook
 About AVEA
GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

7. About Avea
19%
 Merge of 2 different GSM Operators
81%
 Privatization of Turk Telekom in 2005
 New shareholder structure in 2006 2004
June
11,6 mio subscribers*
* As of Feb 2011

8. VAS At AVEA
Music
LBS Mobile TV
Social Network Avea biDünya Info & News
Operator Services Mobile Game
Business Services

9. Agenda
 VAS and Content Services: Global Outlook
 About AVEA
GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

10. Market Overview- GSM and VAS
 3 GSM operators in the market: Avea, Turkcell, Vodafone
Mobile Handset Penetration (Sep 2010)
As of Jan 2011
 66 million GSM subscribers
 VAS accounts for 500 M US$, about 6% of all GSM services
25% revenue market share in VAS
10

11. Market Overview – Mobile Internet
Number of Mobile Internet
Users
(X 1000)
Source: BTK-Turkey, Q4-2010 report
• Number of 3G users have almost tripled from 2009 to 2010. (7,1% vs. 19,4%)
• Number of Internet-on-your-mobile users have grown from 641 K to 1,448 K.
11

12. Agenda
 VAS and Content Services: Global Outlook
 About AVEA
GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

13. VAS Turkey-Where is the golden mine?
Turkish consumers use mobile particularly for social networking and email.
However; news, interest, multi-media and gaming are secondary to those.
% doing activity
Daily Ever
85
69 72 64 66
57 61 55
51
40
29
Mobile 52 44 32 15 16 11 20 39 28 29 21

14. VAS Turkey-Where is the golden mine?
Engagement levels are high across most activities. However, engagement is higher for
entertainment based, visual activities such as online gaming, multi-media and also
personal interest.
% doing activity daily % highly engaged
59.4
55.6 53.9 54.9 54.4 56.1 56.5
53.7 53.1 51.6
47.6
86
74 78
68 65 63
45 49
25 29
19

15. VAS Turkey-Where is the golden mine?
Many activities such as social networking are set to grow via mobile, though this is
from a very small base.
Greater increase on PC Greater increase on mobile*
Future increase in activities
* Low base for subgroup
Global Turkey Male* Female* 16-20* 21-24* 25-34* 35-44* 45-60*

16. VAS Turkey-Where is the golden mine?
For social networking Turkish consumer have a greater need for excitement and
stimulation. This is also reflect in high usage levels of multi-media and online gaming
Personal Admin Global needs:
Social Global needs:
Under control, on top Sociable, friendly
of things Fun, pleasure
Effective, efficient In touch, in the loop
Confident, assured
Turkey needs: Turkey needs:
Confident, assured Fun, pleasure
Recognised, important Energised, excited
Responsible, thoughtful Amused, entertained
Online gaming Multi Media Global needs:
Global needs:
Fun, pleasure Fun, pleasure
Amused, entertained Amused, entertained
Energised, excited Energised, excited
Turkey needs: Turkey needs:
Amused, entertained Amused, entertained
Fun, pleasure Fun, pleasure
Energised, excited Energised, excited

17. Agenda
 VAS and Content Services: Global Outlook
 About AVEA
GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

18. Evolution of the Content
Static Dynamic
Centralized Decentralized
Walled Social
Expensive Cheap
Geeky Mainstream

19. Mobile TV
Mobile TV to get momentum with interesting and socializing content
Handset Handsets
& Network • Bigger screens
Client
• Higher resolution rates
- - Screen Size
Screen Size - Download rates • Lower priced
- - Resolution Rate
Resolution Rate on-the-go
- - Handset Prices
Handset Prices - Uninterrupted streaming Network
- - Handset Client
Handset Client - Data Fees • Better coverage
• Higher network capacities
• Lower data fees
- Interesting
Content
- Socializing
• Lower content fees
- Content Fees
Content
CONTENT MATTERS

20. Mobile TV in Turkey
How do you access TV channels Would you prefer to watch
when no TV is around? free channels via your
80% mobile?
60% As of Oct 2010 55% As of Oct 2010
60% 60%
46% 45%
37% 40%
40%
20% 20%
0% 0%
Laptop Desktop PC Mobile Handset Yes No
How do you access TV channels? Would you pay for the
6% content?
Antenna As of Oct 2010
100% 71%
Satellite
26% 43%
50% 29%
Digital or Cable
25% Antenna and 0%
Satellite
As of Oct 2010 Yes No

21. Mobile TV : Turkey and AVEA
• All three operators have their own Mobile TV multicasting solutions.
• Video on Demand is available only at Turkcell since it has not proved to be
profitable line of business yet.
• The overall market size is estimated to be 3-4 M $ as of Jan 2011.
MOBILVIZYON of AVEA
 18 popular national channels live
 50 K/mth revenue on average
 35% YoY growth in the customer base (~ 160 K customer)
Daily/Monthly Subscription Fee + Free URL

22. Music Services

23. Music Services: Turkey
Aveamuzik.com ttnetmuzik.com.tr
Gncplay.com
• 54% of Aveamuzik.com customer are between 15 and 24 years old.
• 32% of Aveamuzik.com customers are between 25 and 34 years old.
• 56% of youth segment in Turkey finds AVEA brand young and energetic.
• 48% of youth segment in Turkey believes that AVEA invests into music.

24. Music Services @ AVEA
• Aveamusic.com has 130 K subscribers as of Mar 2011
• RBT service has 250 K subscribers as of Mar 2011.
• 90% YoY growth in the customer base (2010-2011)
• 40% market share in the mobile music download
TARIFFS BEING THE MOST IMPORTANT KEY TO THE SUCCESS AS THE
MUSIC IS CONSUMED BY YOUTH SEGMENT AT A VERY FAST RATE.

25. Mobile Game: Global Outlook
2010 – Mobile Games Revenue (M US$)
105 102
165
Apple Store
BB App World
Source: IHS ISuppli
Nokia OVI Store
1.800 Android Market
• In-Stat predicts that in game purchases will reach 7,3 billion US$ in 2011.
• Juniper Research says mobile game revenue will top 11 billion US$ by 2015.
• Juniper Research says ad spend on mobile games will increase tenfold over
the next five years. By 2015, ad spend on this platform will reach 894 million
US$, up from 87 million US$ in 2010.
• Parks Associates in Nov 2010 reported that one in five gamers spends money
on virtual items and microtransactions, which are expected to garner 6 billion
US$ in revenue by 2015.

26. Mobile Game: Trends
1600 1514 • Mobile Gaming makes the
1376,7
1400 biggest chunk of the content
1200 1173,4 2009 revenues in the U.S. and is
1028,5
1000 2010 expected to keep its position in
849
800 2011 the next few years.
627,7
600 2012
• There is a growing emphasis on
400 2013 monetizing such content through
200 2014 downloads, advertising and in-
0 game purchases, rather than
US Mobile Game Revenue (M $)
shipping phones with games
Source: emarketer.com
preinstalled.

27. Mobile Game: Turkey
Mobile Game market is estimated to be about 60 M US$ in Turkey in 2011.
AVEA and Sobee has started the discussions to adapt I Can Football into mobile.
• Multi Player Online Game launched by Turk Telekom in 2010.
• Has won World Communication Awards in 2010 in Best
Content Service category
Registered Members : 812.000
Mobile Activation : 357.000
Average Length of Visit : 29 minutes
ISlash, by Duello Games*, sales has surpassed Angry Birds sales on Turkey app store.
• A slashing puzzle game
• 3 million downloads from App Store (Sep 2010- Mar 2011)
• Priced as 0,99 US$
* Duello Games is a Turkish company.

28. Mobile Application Stores
According to Gartner:
• Worldwide Mobile Application Store revenue forecast to surpass 15 billion US$ in 2011.
• Revenue between 2010 and 2014 is forecasted to grow 1000% and to reach 58 billion US$.
WHY IS THAT SO IMPORTANT FOR CONTENT SERVICES?
Sep 2010

29. Mobile Applicaton Stores: How can operators get into play?
Walled-Garden Store Open Store SIM Store
Strategy • Offers only in-house built • Offer access to • Selling apps
or outsourced applications external stores in for featured
• Targets niche markets or a addition to the closed phones
specific customer segment storefront features
• Limits the play ground to a • Revenue from external
specific handset stores are shared
Requirements • Very well segmented • High-end service • Advanced
customer base Delivery Platform SIM Tool Kit
• Building a developer interfaces
community
Monetization • Instant M-payment • Instant M-payment • M-Payment
• Mobile Advertising • Revenue sharing

30. Location Based Content Services
Registered Foursquare Users
Facebook
Places
launched
• Social Network Services
• Shopping Applications
• Location Enabled Search
• Mobile Advertising
• Personal Navigation
According to IEMR report published in Jul 2010;
• The global market for GPS navigation and location based services will
increase to 13,4 Billion US$ in 2014, a compound annual growth rate of
51.3%.
• Location based search and advertising to drive 2 Billion US$ of the
above.
• The adoption of GPS in mobile handsets is largely being driven by
smart phones.
• In 2009, more than 40% of all smartphone owners used their mobile
devices to get turn-by-turn directions, according to data from Compete,
an industry leading web analytics firm. For iPhone users, the figure is
even higher at over 80%.

31. Location Based Content Services: Turkey
• All operators in Turkey somewhat
have Location Based Content
Services.
• Market growth is driven by
smartphones, led by Apple Iphone.
• The market size is estimated to be
about 5-6 M US$ as of today,
since location based advertising
has not yet ramped up.
• Facebook Places was launched in
Turkey in Mar 2011.
• Foursquare has 90 K users as of
Feb 2011 in Turkey.

32. Location Based Content Services: IBB Cep Trafik
• IBB Cep Trafik was first launched in 2005 and was free.
• By May 2008, the number of users have reached 400 K.
• In addition to original Native Java version WME and Iphone
editions have been launched betweeen 2008 and 2009.
• The number of users have dramatically dropped as low as to
10 K users in Dec 2009 due to the subscription fee of 5
TL/month.
• Nowadays IBB is working on an ad-funded model.

33. Agenda
 AVEA
 GSM Market- Turkey Overview
 VAS Turkey-Where is the Golden Mine?
 Global Outlook
 Content Services: Hot Topics
 Mobile TV
 Music Services
 Mobile Game
 Mobile Application Stores
 Location Based Services
 Summary and Conclusions

34. Conclusions
AS OF TODAY:
 Content is now more social, decentralized, but cheaper.
 Mobile Content revenue will be driven by Music and Gaming services.
 Fremium apps with in-game purchases will make more than 50% of overall mobile game revenue.
 Digital music is majorly consumed by youth segment, the price sensitivity is high.
 Mobile TV revenues will grow in parallel with the handset and network capabilities.
Location based services revenue has a big room to grow, mobile advertising seems to be the key
 revenue stream.
Mobile Apps stores are converting the VAS world quickly into an IP space, operators must
 urgently decide the route to take to avoid ending up as a dummy pipe.
 M-Payment solutions must be taken into scope immediately.

35. DO NOT...
AND
Refine your mobile content strategy over time

36. QUESTIONS?
THANK YOU
FOR
LISTENING