| Eurasia |
Market Data
Total population 306 million, Average GDP-growth 10%
Mobile Penetration range 12% to 111%
All data as of March 2007.
Sources: Fintur, Turkcell, MegaFon, ACM Estimates, CIA World Fact Book. |
Strong positions in mobile growth markets
TeliaSonera has strong positions in the mobile growth markets in Eurasia, including Russia and Turkey. Mobile penetration in the region ranges from 8 percent in Afghanistan to 111 percent in Ukraine.
TeliaSonera owns 74 percent of Fintur Holdings, which manages mobile operations in Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia and Moldova. TeliaSonera entered Uzbekistan, Tajikistan and Afghanistan in July 2007 through the acquisition of shareholdings in Coscom, the third largest mobile operator in Uzbekistan, Indigo and Somoncom, combined the second largest mobile operation in Tajikistan, and a stake of 12.25 percent in Roshan, the leading operator in Afghanistan.
Next to Afghanistan, Uzbekistan is the largest market in the region with 27.8 million inhabitants, followed by Kazakhstan and Azerbaijan with 14.8 and 8.4 million inhabitants, respectively. Tajikistan has 7.1 million inhabitants, while Georgia and Moldova have 4.5 and 3.5 million, respectively.
The companies offer a wide range of services for voice and data, good network coverage and good customer support. All of them hold strong positions on their markets. The two largest of the Fintur companies, K'Cell and Azercell, are market leaders.
| Key Facts |
|
Group holding (%) |
Trademarks |
Services |
Number of subscriptions |
Market Share (%) |
Main Competitors |
Kazakhstan*
Azerbaijan*
Uzbekistan
Tajikistan
Georgia*
Moldovan*
Russia
Turkey
Ukraine** |
51
51.3
74
60
59.4
97.5
100
43.8
37.3 |
K'Cell
Azercell
Coscom
Indigo
Tajikistan,
Somoncom
Geocell
Moldcell
MegaFon
Turkcell
Life |
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
Mobile
|
6,017,000
3,029,000
690,000
611,000
1,296,000
504,000
35,656,000
34,800
7,600,000 |
49
71
12
28
47
27
21
57
14 |
VimpelCom
Bakcell
MTS
VimpelCom
Babilon
Mobile
Magticom,
VimpelCom
MTS,
Vimpelcom
Vodafone,
Avea
Kyivstar, MTS
VimpelCom |
*For Kazakhstan, Azerbaijan, Georgia and Moldova, the number indicates Fintur Holding B.V.'s ownership in the four companies. TeliaSonera holds directly and indirectly 74 percent in Fintur Holdings.
**Turkcell’s GSM subsidiary in which Turkcell holds 55 percent. |
The data in the table refers to 2007. For additional financial information, please refer to the Report of the Directors in TeliaSonera's 2007 Annual Report.
The infrastructure for fixed communication is weak, which increases the demand for mobile services. Despite strong growth, penetration in the region is still low ranging between 29 and 43 percent in Fintur’s markets and between 8 and 20 percent in the three newly entered markets.
Kazakhstan, Azerbaijan, Georgia, Moldova, Uzbekistan and Tajikistan are former republics of the Soviet Union. Kazakhstan and Azerbaijan have major oil and gas deposits, while agriculture is the dominant industry in Moldova and Georgia as well as Tajikistan. Uzbekistan has a significant production of gold and natural gas and is the world’s second largest exporter of cotton. The countries have rapidly growing economies but the per capita income is low in all countries.
Fintur is a significant investor in Eurasia and plays an important role in society as an infrastructure builder as well as an employer and tax payer.
In Russia, TeliaSonera owns 43.8 percent in MegaFon, the country’s third largest mobile operator and the only operator with mobile licenses for all regions in Russia.
Russia has 143 million inhabitants. The Russian mobile market has undergone a phase of strong growth primarily in the two large cities Moscow and St. Petersburg, where mobile penetration has passed 100 percent. Continued growth is located primarily in regions outside of the large cities. MegaFon is also present in Tajikistan, through its ownership in TT Mobile. TeliaSonera’s effective ownership in TT Mobile is 33 percent.
In Turkey, TeliaSonera owns 37.3 percent in Turkcell, the country’s leading mobile operator.
Turkey has 73 million inhabitants. The fixed line penetration is low at approximately 26 percent. This increases demand for mobile communications and the Turkish mobile market has grown rapidly in the past several years.
MegaFon is rapidly implementing its pan-Russian strategy by establishing a nationwide network and launching mobile services on the market. At the beginning of 2006, MegaFon offered mobile services in 77 of Russia’s 88 regions.
The inflow of customers is strong and the company is showing good development regarding both sales and earnings. In 2006, the subscription base increased by 6.9 million and MegaFon strengthened its market position in terms of revenues.
www.megafon.ru
Turkcell has a strong brand, a wide range of value added services, good customer support and attractive customer incentive programs. Turkcell's network covers all locations with more than 5,000 inhabitants.
With a subscription base of more than 30 million, Turkcell is among the largest mobile operators in Europe. The company is showing good development regarding both sales and earnings.
Turkey has 73 million inhabitants. Low fixed-line penetration, at about 26 percent, increases demand for mobile communications and the Turkish mobile market has grown rapidly in the past several years.
Turkcell also offers mobile services in Ukraine under the brand Life and northern Cyprus via the subsidiary KKTCell.
Turkcell is listed on the New York Stock Exchange and the Istanbul Stock Exchange.
www.turkcell.com
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