About Turkcell Iletisim Hizmetleri A.S.

Turkcell Iletisim Hizmetleri A.S. (Turkcell) engages in developing and operating a global system for mobile communications (GSM) network in Turkey and regional states. Segments The company’s business is divided into three main reportable segments: Turkcell Turkiye, Turkcell International, and Techfin. Turkcell Turkiye: Turkcell Turkiye includes the company’s telecom, digital services and digital business services related businesses in Turkiye. The company’s Turkish telecommunications business represents the largest share of its business. Turkcell Turkiye reportable segment includes the operations of Turkcell, Turkcell Superonline Iletisim Hizmetleri A.S. (Turkcell Superonline), group call center operations of Global Bilgi Pazarlama Danismanlik ve Cagri Servisi Hizmetleri A.S. (Turkcell Global Bilgi), Turktell Bilisim Servisleri A.S. (Turktell), Turkcell Teknoloji Arastirma ve Gelistirme A.S. (Turkcell Teknoloji), Kule Hizmet ve Isletmecilik A.S. (Global Tower), Atmosware Teknoloji Egitim ve Danismanlik A.S (Atmosware Teknoloji), Rehberlik Hizmetleri Servisi A.S. (Rehberlik), Turkcell Gayrimenkul Hizmetleri A.S. (Turkcell Gayrimenkul), Lifecell Dijital Servisler ve Cozumler A.S. (Lifecell Dijital Servisler), Lifecell Bulut Cozumleri A.S. (Lifecell Bulut), Lifecell TV Yayin ve Icerik Hizmetleri A.S. (Lifecell TV), Lifecell Muzik Yayin ve Iletim A.S. (Lifecell Muzik), BiP Iletisim Teknolojileri ve Dijital Servisler A.S. (BiP A.S.), Turkcell Satis’s digital business services, Turkcell Dijital Is Servisleri A.S. (Turkcell Dijital) and Turkcell Dijital Egitim Teknolojileri A.S. (Dijital Egitim). Turkcell International: Turkcell International comprises the company’s telecom and digital services related businesses outside of Turkiye. Turkcell International reportable segment includes the operations of Lifecell LLC (lifecell), CJSC Belarusian Telecommunications Network (BeST), Kibris Mobile Telekomunikasyon Limited Sirketi (Kibris Telekom), East Asian Consortium B.V. (Eastasia), Lifecell Ventures Cooperatief U.A (Lifecell Ventures), Beltel Telekomunikasyon Hizmetleri A.S. (Beltel), LLC UkrTower (UkrTower), LLC Global Bilgi (Global LLC), Turkcell Europe GmbH (Turkcell Europe), Lifetech LLC (Lifetech), Beltower LLC (Beltower), Lifecell Digital Limited (Lifecell Digital), Yaani Digital BV Yaani) and BiP Digital Communication Technologies B.V (BiP B.V.). Techfin: Techfin comprises all the company’s financial services businesses. Techfin reportable segment includes the operations of Turkcell Finansman, Turkcell Odeme, Paycell, Paycell Europe, Turkcell Sigorta and Turkcell Dijital Sigorta. Other segment: This segment mainly comprises the company’s non-group call center, energy businesses, and retail channel operations, smart devices management and consumer electronics sales through digital channels of Turkcell Satis, and intersegment eliminations. Strategy Turkcell has played a central role in the development of the telecom industry in Turkiye. Turkcell started its life as a mobile operator. Later on, along with the convergence strategy, it started to offer fixed telecom services and became an integrated operator. Finally, by developing its digital product and service competencies, it adopted the digital operator vision. The company is developing a step further and building a new three-year strategic plan for 2023 - 2025. With a purpose to continue its growth, telecom services continue to be at the center of the company’s strategy. The company will maintain its leadership in mobile and continue to invest in fiber business to increase its market share in the fixed broadband market. The company’s unique portfolio of digital services, such as TV, music, storage and digital communication are made available to its customers through its market-leading telecommunication capabilities, which set it apart from global over-the-top (OTT) players. The company will continue to focus on monetizing these services, particularly on their revenue generation on a standalone basis. The company will deepen its digital services by constantly reviewing and optimizing its product portfolio, focusing on and highlighting the leading products. The company is combining these services under the name of Digital B2C and adding digital education as a new focus area, aiming to be a strong player in the edtech market. The company will particularly focus on increasing the competitiveness of its TV product offering. Already offered by its international subsidiaries, its digital services are set for expansion in new markets through commercial partnerships, mainly with other telecom operators. As an example of this, a strategic partnership has just been announced with Veon Group to advance BiP, Turkcell’s instant communication service in Pakistan. The second source of the company’s growth beyond telecommunication business is digital B2B services. Turkcell Digital Business Services, its technology service provider company, is continuing to provide tailor-made, end-to-end information & technology (ICT) solutions, which include connectivity, data center and cloud services, security services, system integration and managed services, new generation technologies and business applications for enterprise customers, SMEs and central and local authorities by leveraging its ability to combine telecom and IT services and thereby adding value in the course of their digital transformation. The company particularly targets sectors including health, education, manufacturing, retail, central and local authorities, logistics, finance, energy, tourism and SMEs. The company’s target for Turkcell Digital Business Services was to become market leader in IT services market of Turkiye by 2022, and as per IDC report, it has achieved this objective two years ahead of its target. As a market leader, cyber security, data center, cloud, health and education will continue to be the company’s main focus areas within the scope of its new strategic plan. As the last pillar of growth beyond its telecommunication strategy, the company continues to focus on digital financial services, or techfin services. In 2022, the company made a digital banking company establishment application to BRSA in Turkiye, where the approval process continues. The company’s mobile payment company, Paycell, has established key vertical business lines including mobile wallet, carrier billing (Pay Later), utility payments, money transfer, QR code payments and POS services. Going forward, Paycell focuses on scaling its products, targeting both the consumers and merchants to establish the position of being the leading fintech company in Turkiye and in the region. Paycell aims to increase its recognition in the international arena with business partnerships and company establishments. The company will continue to provide digital solutions to meet the needs of both its individual and corporate customers and to ensure their digital transformation by simplifying the areas it has entered so far, and focusing on, and deepening its market in particular new areas. However, the company’s main focus for the next 3 years will be how it does it. While providing all these services to meet digital needs of the company’s customers, it will be more efficiency-oriented and focused on maximizing its value. Thus, the company started a variety of different optimization and efficiency projects. This composes the third pillar of the company’s strategy, which is value maximization: The most important component of the company’s value maximization strategy is energy management. By further improving the renewable energy investments the company has made to date. The company’s second focus for value maximization is digital transformation. Although the company has been constantly improving its digital competencies for a while, it will approach the process holistically and complete the digital transformation in both sales and business processes. The company started the project, determined by the 3-year initiatives, built a digital transformation function and it expects an increase in customer satisfaction, digital revenues and productivity. Thirdly, due to the company’s operations in many different business areas, it aims to renew its Group governance model and manage each business with a bespoke structure, thereby creating long-term value. The company is carrying out a comprehensive project and eventually it will create a new group governance model that will provide both agility, efficiency and value maximization. The company is one of the first players in its sector to invest in large-scale R&D, and it is one of the leading companies in terms of investment into, and results arising from, R&D. The company will closely follow the innovative projects realized in the company in order to maintain its leadership and obtain the maximum benefit from these projects. The company plans to step into value-creating businesses by entering into collaborations and partnerships in different fields. The company has a venture capital fund for new businesses. Finally, the company continues to assess macroeconomic conditions and pursue opportunities in Turkcell Superonline, BiP, Paycell and Global Tower where possible. As the fourth pillar of its strategy, in every business it does, in every field it enters, its most important approach will be people-orientation. Finally, sustainability will be one of the most important components of the company’s strategic plan which includes environmental sustainability, digital and social inclusivity and ethical and valuable operation. Customer Segmentation and Services Customer Segmentation On a broader scale, Turkcell Turkiye divides its customers into three main categories: Consumer Category In the consumer category, the company manages its mobile subscribers either under the mass segment or under one of its three large sub-segments, youth, women and premium. In addition, a micro segmented approach has been applied throughout the year, meaning that each customer is matched with offers that best suit their needs and expectations. In line with its goal of being a digital service provider and enlarging its customer base, the company provides numerous offers and campaigns enriched with its digital services, such as BiP, fizy, TV+, lifebox and GAME+ in accordance with market dynamics and customer demand. Fixed broadband customers are consolidated under a single segment (residential) and managed under the consumer category along with mobile consumers. By positioning the residential segment under the consumer category, the company aims to enhance synergy between mobile and fixed businesses. Under the residential segment, the company has its fiber internet customers, who use its own fiber infrastructure, and its DSL and cable customers, to whom Turkcell is a reseller. Turkcell’s FWA service, Superbox, is also managed under the residential segment. Corporate Category The corporate category for the company’s mobile and fixed customers comprises its small and medium business customers, as well as its enterprise customers. The company provides differentiated mobile and fixed communication offers for each of these customer groups and support their digital transformation process with its digital business services. Wholesale Category The company’s wholesale category focuses on managing wholesale voice, data, roaming, tower and digital services with the national licensed operators, international operators and network-centric business owners, such as data centers and content providers. For roaming services, the wholesale category strives to achieve the best international coverage for customers to have continuous communication wherever they travel and to enable all visitors to enjoy the service quality of Turkcell. For wholesale data and voice services, the company’s main strategy is to become the regional junction point in an increasingly digitally hyper-connected world, and while promoting its infrastructure in the international market, it focuses on growing as a preferred wholesale partner of local operators in the domestic market as well. Services The company provides high quality mobile and fixed voice, data, TV and digital services to its subscribers throughout Turkiye. The company’s mobile subscribers can choose between its postpaid and prepaid services. Postpaid subscribers sign a subscription contract and receive monthly bills for services. The company provides a range of fixed services in Turkiye, including voice, broadband and IPTV to consumers and a wider range of services to its corporate customers from cloud services to traffic carrying. The company provides these services through a combination of its own fiber infrastructure, through sharing agreements and leased copper ADSL lines. As such, the company offers fixed broadband services through the cable infrastructure of Turksat, the government-owned provider of cable and wireless broadcasting, high-speed internet services, and direct to home broadcasting services in Turkiye. As of December 31, 2022, the company had approximately 2.9 million fixed broadband customers of which 2.1 million were fiber customers, 751 thousand were ADSL customers and 44 thousand were cable customers. While providing free communication packages to subscribers, healthcare personnel and emergency teams in the region, the company has also provided one month of free communication to subscribers in the state of emergency region. The company provides a range of digital services related to communication, music streaming, entertainment to individuals, cybersecurity, data center, cloud to enterprises, as well as services under techfin categories. Voice Services Voice services are among the key services that the company provides to its customers. Voice services consist of high-quality mobile communication services on a prepaid and postpaid basis and fixed voice services for consumers and corporate customers. Broadband Services The company’s broadband services consist of mobile broadband, fiber to the home/building, xDSL, cable and fixed wireless broadband services (FWA) over its mobile network. The company’s capability to offer 4.5G in all of 81 cities in Turkiye has resulted in increased network abilities and data speeds. 4.5G services coupled with the wider availability of technological products has contributed to a more connected life for the company’s customers, resulting in an increase in overall internet usage. Smartphones, which combine the features of a mobile phone with those of other popular digital mobile devices (e.g. personal digital assistants, media players, GPS navigation, digital camera, etc.) and have an open operating system (e.g. iOS, Android, Windows Mobile, etc.) allowing access to the internet and running a variety of third-party and owned software applications, are an important component of the growth of the company’s mobile broadband and digital services businesses. Smartphone penetration on the company’s network reached 87% by the end of 2022. Since February 2014, the sale of smartphones through credit cards with installment plans has been banned in Turkiye. Turkcell initiated Financell in 2016 to offer its customers consumer loans in their purchase of smart devices. As a macroeconomic prudential measure, the BRSA has introduced a limit to the number of installments for consumer loans, starting from September 2018. Distributors, dealers, Financell and Turkcell offer joint campaigns to the subscribers, which may include the sale of devices by the dealer and a communication service to be provided by the company. In addition, the company is selling handsets ourselves as a principal. The company delivers attractive joint campaigns with models of brands in high demand, such as Samsung, Apple, Oppo and some local handset manufacturers, such as Reeder, OMIX and General Mobile. The company offers fixed broadband internet tariffs to its residential customers. The company also offers internet, voice and TV bundles, where it benefits from the use of its own fiber. Outside of its own fiber infrastructure the company is able to offer double-play packages with broadband and voice to its customers. The company emphasizes its no hidden fees value proposition with its broadband products by not charging its customers for activation, modem or installation services separately, and by offering high-speed fiber broadband at attractive prices In addition to the internet, voice and TV bundles, the company’s residential broadband customers are offered the fixed broadband and fiber device bundled campaigns, where specific models of new technology devices are offered to customers with 12- or 24-month internet service contracts. Furthermore, starting from the first quarter of 2020, its residential segment customers are able to benefit from campaigns with devices that match their credit scores and obtain financing from Financell. The company also serves its customers with its FWA service Superbox, which offers wireless high-speed internet access for customers and is primarily preferred by those who are at locations with no fiber infrastructure. Superbox is the first and the widest FWA service in Turkiye. The required equipment is included in the subscription plan and the service uses the LTE Advanced network as a backhaul to provide internet connectivity. As of December 31, 2022, the company had 671 thousand Superbox customers in Turkiye, up from 604 thousand a year ago. Digital Services and Solutions Over the course of the past years, Turkcell has developed its own digital services and solutions. Turkcell has a large portfolio of mobile applications, which can be downloaded from app markets and are available on iOS, Android and HarmonyOS platforms. These applications are available for any user regardless of their choice of mobile operator. All of these apps are created and/or sustained by the company’s in-house mobile application development team consists of more than a thousand R&D engineers. The company focuses on marketing its digital services portfolio to trusted telecom operators around the world. In 2022, the company had 5.1 million standalone paid users which mainly include subscriptions for IPTV, mobile (OTT) TV, fizy, lifebox and Game+. The performance of the company’s digital services portfolio is monitored internally through KPIs that are relevant to each individual service. BiP BiP is an integrated IP-based communication platform with the following key features: Instant messaging to contacts or groups, sending photos, videos, audios, documents and share location; and disappearing messages in the pre-defined time; High quality VoIP, video call, group video call up to 15 people; Instant translation; Communicating with non-BiP users via SMS and network call, integrating two numbers under BiP; Virtual number service which enables customers to have a mobile number without a SIM card and make/receive calls through the application; Entertainment content, Discover section on various topics, including business, health, weather, etc.; Peer-to-peer money transfer through Paycell collaboration; and Emergency communication feature. The BiP Discover section offers a connected life experience as a marketplace that consists of various entertainment and information services. This section offers two-way communication between users and services. BiP Discover serves over hundreds of different services, including freemium services, entertainment and gaming services, governmental channels and brand channels from fintech to universities. BiP users, independent of operator, can access various free and premium services. BiP’s infrastructure enables Multicloud Architecture, through which operators can build their own digital communication platform, thereby safely storing their communication data in their country as well as customizing their app by changing the brand, app logo and providing their local services. Moreover, all app users (BiP or its customized apps working on this multicloud infrastructure) can seamlessly communicate between each other. This leverages the company’s ability to provide these services through collaborations with global operators. As such, a strategic partnership has been announced in December 2022 with Veon Group to advance BiP in Pakistan. BiP Meet The company has developed its own video conferencing solution, BiP Meet, in order to meet the ever-changing needs of consumers and businesses and adapt to the changes brought by the global pandemic. Available as a desktop app, mobile app and online, BiP Meet is secure, reliable, and user-friendly. The company offers free sign-up to BiP Meet where the trial package provides for up to 50 meetings (limited to 1 hour) per user per month free-of-charge. The trial package includes various features, such as secure meetings with password-protected rooms, screen sharing, hiding & unhiding display, microphone and camera management, group and private messaging, cohost enabling, virtual background, polls and voting and YouTube sharing feature. All the data is stored in Turkcell data centers with the highest security standards. TV+ Turkcell’s multi-screen TV platform TV+, launched in October 2014, delivers an enhanced television viewing experience to its subscribers anywhere, any time with more than 150 channels. Its unique features as compared to other platforms include the abilities to pause and rewind live streams, record to cloud and the capability to switch between four screens. TV+ offers the Ultra HD supported 4K content box and 4K content on IPTV platform. With a view to increase TV+ penetration focusing on Big Screen strategy, the company also deployed TV+ on Apple TV, Android TV, TV+ Ready (Android TV Box) and Smart TV applications. TV+ Ready is a new generation Android box that is easy to install to any television with any internet connection. TV+ Ready is the first brand to bring content bundled Android TV offer to the Turkish market. The device also enables its user to reach and use other apps available in Google Play store. fizy Digital music service fizy enables its users, through the application and the web version, to access around 43 million songs, videos, live concerts and radio channels with high quality sound for a monthly subscription fee with premium, student, family and duo options that also include data available for this service. Premium users can stream music on fizy without any ad interruptions, and have the flexibility to listen to songs offline. The application offers personalization through enhanced-AI technology. fizy is also available in Belarus and the Turkish Republic of Northern Cyprus. lifebox Turkcell’s personal cloud service, lifebox, is the first local cloud-storage service in Turkiye. It enables users worldwide to store their photos, documents, contacts, and videos in one secure, convenient and personal space with auto sync abilities, and to share them easily. lifebox also offers a phone book synchronizing feature. Each user who downloads and logs into the application is given 5GB of storage space free of charge. lifebox also offers the PhotoPick feature, which uses AI to suggest the best photo for Instagram. Launched in 2020, lifebox transfer offers a convenient and free-of-charge experience of fast file sharing without need for membership, while storing the data in Turkiye. In 2021, the company launched lifebox business, a new generation cloud solution that enables enterprises to comply with the regulations regarding data protection. Yaani Yaani is a browser, providing a fast, secure and stable browsing experience, combined with a unique set of features. Yaani is available for both iOS and Android devices. Digital Advertising Turkcell generates revenue by offering advertising services not only in the advertising areas in its applications but also in the advertising inventory throughout Turkiye. The company provides services through its SaaS advertising platform to all major advertising agencies in Turkiye. At the same time, the company is offering digital advertising and social media advertising services to the SME segment. The company is developing its own advertising platform. YaaniMail YaaniMail, Turkiye’s local free e-mail service, was launched in December 2019 serving individual users with the @yaani.com domain. This all-access and cross-platform service provides a pure e-mail experience with its user-friendly and seamless design. Users’ personal and sensitive data is kept securely at Turkcell’s data centers located in Turkiye. Furthermore, in April 2020 the corporate e-mail service YaaniMail Business was launched for enterprises. It is offered at affordable prices coupled with an expert support team for remote and on-site assistance. In 2022, YaaniMail Business reached more than 1.500 companies with 35.000 mailboxes. UpCall UpCall is an application enriching and facilitating the company’s customers’ calling experience with its different features offered through its capabilities as a telecommunication operator. The application also offers a smart search feature that enables the access to the identity of the owner of an unknown number based on the Turkish National Telephone Directory. GAME+ GAME+, is the cloud gaming platform through which the company started to offer a brand-new experience in 2021 over Turkish servers as part of its cooperation with the world’s most popular cloud gaming platform NVIDIA GEFORCE NOW. Cloud gaming technology, which is becoming increasingly popular in the gaming sector, eliminates the need for powerful hardware required for gaming. Digital Inclusion Solutions Turkcell is eager to leverage its digital and technical competencies to create value for society, empower society for equal social inclusion and create a better future together. This focus resulted in several digital society solutions, including My Dream Companion and Whiz Kids applications. My Dream Companion application enables visually disabled individuals to access content, such as daily news, columns, books and trainings rapidly and easily, and provides them more active and independent social life through its indoor navigation and instant audio description technologies. In 2022, the company developed a new live audio description technology for performances, such as theaters and musicals in addition to its audio description technology for movies. With this technology, visually disabled people are able to watch live performances without missing visual details. In 2022, the company also implemented its indoor navigation technology at 103 Turkcell stores in 81 different cities of Turkiye. With this implementation, visually disabled people are able to get step by step navigation in its stores. The Whiz Kids project was initiated in 2016 under the auspices of the Ministry of National Education. By way of in-classroom setting, as well as trainings through mobile applications and online platforms, the Whiz Kids app aims at empowering children in Turkiye to realize their potential through the education of new technologies. Digital Identity Management Services Fast Login, a secure universal login solution, which allows users to securely access a wide array of digital services and websites using their mobile phone or e-mail account for authentication, was launched in December 2015. Simply by matching the user to their mobile phone or e-mail address, Fast Login allows them to login to websites and applications quickly without the need to remember passwords and usernames. Fast Login is integrated to 145 applications. In 2022, Fast Login reached 37 million registered users and processed more than 2 billion authentication requests with its easy, fast and secure mobile authentication service. Mobile Signature, was launched in 2007, as the first mobile signature solution in the world. Mobile signature enables mobile subscribers to sign electronic documents and transactions in a legally equivalent way to a wet-ink signature using public key infrastructure (PKI) on SIM cards. Mobile Signature users can easily verify their personal identity in a digital environment and complete transactions remotely, securely and practically. In 2022, mobile signature has increased its reach to 66 thousand subscribers. One Time Password is used by service providers as a secondary factor for authentication of transactions. The service allows service providers to send a single-use password via SMS to their end users in order to ensure transaction security. It is commonly used for online banking processes and login transactions. Digital Business Services Turkcell Digital Business Services combines the overall telecom service provider strategy of Turkcell with its Digital Transformation Business Partner strategy for corporate customers. In this regard, the company contributes to the digital economy by providing end-to-end digital solutions for both private and public enterprise customers. Furthermore, the company implements projects with high value propositions. In addition to its connectivity services based on its strong infrastructure, the company offers various services, such as fixed connectivity, system integrations and managed services, data center and cloud solutions, cyber security services, new generation technologies and business applications, such as IoT, big data analytics and AI technologies and industrial vertical solutions. The company is planning the future technology investments of its customers together with them, by integrating its ongoing infrastructure investments into the new generation services. Fixed Telco and Cyber Security Services The company serves the Turkish market with its 60 thousand km end-to-end fiber infrastructure, enabling it to provide superior quality service. Turkcell’s value proposition of connectivity infrastructure has three main components: fixed data services, fixed voice and unified communications services and cyber security services. Turkcell provides telecommunication services by using its own fiber infrastructure, mobile network capabilities and other communication technologies to meet the connectivity needs of its corporate customers. With Turkcell’s carrier grade SD-WAN (software-defined networking in a wide area network) infrastructure, Turkcell serves traditional and next generation network services within single solution. Turkcell will keep on building a multi-vendor architecture with a white-box approach onboarding several more of the leading software vendors under the Turkcell SD-WAN and SD Security offerings. Managed Security Services is provided to corporate customers for their cyber-security needs and includes DDOS protection, managed firewall services, new generation security services, such as penetration and vulnerability services, threat intelligence services, managed security operation center and security orchestration automation response service. At the beginning of 2021, Turkcell has started to serve cloud-based security services, which will enable Turkcell to provide flexible capacity offerings with different security products and vendors. With this initiative Turkcell’s cloud-based security service portfolio gained quick installation capabilities. Turkcell is offering several main security vendors’ products on own cloud infrastructure and plans to add new vendors to security portfolio. Turkcell is managing a Security Operation Center named Cyber Defense Center – CDC that serves enterprise customers to reach for a holistic security approach. This service enables customers to collect security logs and correlate items to proactively detect security incidents. Turkcell is also managing a Security Orchestration, Automation and Response (SOAR) service. With this service, customers’ security incidents can be immediately notified to customers via e-mail, automatically assigned to analysts and response actions taken in other network tools. Turkcell manages over 5,500 cyber security services in total for around three thousand customers. Furthermore, through its proactive approach, Turkcell has developed its own threat intelligence platform named Turkcell Bozok. Data Center and Cloud Services Turkcell offers a wide range of data center solutions for its corporate customers. These services range from co-location solutions to cloud infrastructure (next generation virtual server, virtual data center), backup, disaster recovery and security services. As at the end of 2022, Turkcell managed over 28,000 virtual servers and protected more than 25 Petabyte of data for its corporate customers. As of December 31, 2022, the company’s datacenters are based across eight locations in Turkiye on approximately 39,500 sqm. of total data center white space area, where IT equipments are placed. The company has 4 traditional data centers that are located in Istanbul and Ankara with a total white space area of approximately 5 thousand sqm and 4 new generation data centers. All of the company’s data centers are in central locations, and services are provided within the scope of certifications, including ISO 9001, ISO 27001, ISO 27017, ISO 20000, ISO 22301, ISO 10002 and ISO 50001 and PCI-DSS. The company builds its first new generation data center in Gebze, Kocaeli in 2016, which has an area of 33 thousand sqm. with 10 thousand sqm. of white space and 30 MVA power capacity. The company’s new generation data centers have Tier 3 standards and Leed Gold certificates Turkcell offers cloud services from seven of its data centers with high availability and reliability standards. The company has integrated all of its cloud services on the website, www.turkcellbulut.com. Through this platform, corporates may configure their infrastructure and software services within minutes and manage them through a self-service portal. Users can use the latest technologies providing business continuity over Turkcell Cloud without undertaking investment costs. There is also a Government Cloud service that has higher security controls for government institutions to secure sensitive data. Turkcell Cloud is the first cloud platform that is certified with ISO27017 Cloud Computing Information Security certification in Turkiye. Turkcell also offers services of global providers, such as Microsoft Azure and Amazon Web Services (AWS) as Multi-Cloud services. System Integration and Managed Services—End to End Solutions The company provides end-to-end solutions for customers as part of their digital transformation process, by combining its telecom and IT services capabilities. In these projects, the company analyzes the needs of its customers from a wide range of industries and provide tailor-made solutions to individual needs—it has implemented 2,888 projects to date with a Total Contract Value (TCV) of TRY 6.7 billion. The company has a backlog in the amount of TRY 2.8 billion from the system integration projects signed to date and to be realized beyond 2022. With its project management team, the company implements system integration projects, IT outsourcing projects, network, security and system management services, application management, end-user services, data center services, digital transformation, IoT, mobile applications, mobile user support and many other solutions and services in accordance with the business processes of its customers. New Generation Technologies and Business Applications Digital Business Applications Business Applications give corporate customers a competitive advantage by providing non-core industrial solutions. Cloud-based SaaS products, such as Office 365, e-Company, biometric signature, digital archive, domain and hosting solutions and collaborative products, digital invoicing, digital learning solutions along with new generation products are available to streamline customer processes and provide operational efficiency through new revenue streaming channels, better customer reach and experience. The company focuses on process automation, remote order and e-commerce solutions as they have become crucial with and after the COVID-19 pandemic. With the rise of the enterprise applications market, as well as improvements in mobile internet, cloud services and mobile devices, corporates have been undergoing a strategically important process of digital and mobile transformation. Turkcell continues to be a strategic business partner to companies in all industries for transformation projects that aim to render all processes manageable via mobile devices anytime and anywhere. IoT Products and Solution Management Turkcell focuses on its Machine-to-Machine (M2M) and IoT business, whose principal markets in Turkiye include car telematics, team tracking, fleet management, POS terminals, security alarms, smart metering, mobile health management, smart agriculture, smart energy and sales force automation applications. Turkcell launched Turkiye’s first M2M Platform in March 2012. With the M2M Platform, customers can manage their M2M sim cards more effectively. Turkcell will continue to pioneer M2M business with the release of services on upcoming new technologies, such as consumer/corporate IoT, NB-IoT (NarrowBand-Internet of Things), LTE-M and M2M eSIM which is a type of low-power wide-area network radio communication technology standard developed by 3GPP for M2M and Internet of Things applications. Mobility, a key IoT vertical for Turkcell, refers to the integrated application of smart technologies and management strategies in mobility systems, which includes B2C/B2B vehicle tracking, team tracking, connected car solutions and fleet management. Within the Turkcell Kopilot Filom service, Turkcell enables firms to track their fleet on maps, access critical reports about their fleet and encourage their drivers to drive safely, with a user-friendly platform through web and mobile applications. In addition, corporate customers can monitor and manage their sales forces and fleets with Ekip Mobil (Team Mobile). The service is a management console that allows customers to view their field teams/vehicles on a map, define alarms for specific regions and create direct communication channels to the field. Team Mobile can be used on any mobile device and comes with a minimal investment cost for companies. Turkcell designs Industry 4.0 and energy solutions that increase the productivity of enterprises in the field of intelligent production and integrated energy solutions. The company provides solutions to create smart factories that are designed for the energy market. The smart energy service Turkcell Enerjim enables corporates to monitor their energy consumption and increase their efficiency. Turkcell also launched a new Industry 4.0 service named Turkcell Digital Facility in March 2021. The service provides personnel tracking, social distance management, environmental conditions monitoring, forklift security, machine production management and panic button for production facilities to help them to increase occupational safety and efficiency. It also provides retail solutions like visitor monitoring and customer satisfaction management. Big Data Analytics Services Turkcell provides big data analytics services to companies to help them understand industry dynamics and intensity of competition. These services also enable companies to obtain information on their customer base by providing demographic, behavioral and competitor analysis to help them support their marketing strategy through data. The company creates new insights and propositions by leveraging artificial intelligence, machine learning and data analytics capabilities. The company has two main service offerings in Big Data domain: Insights as a Service and Analytics as a Service. Insights as a Service (Business Insights) is designed to create an end to end solution for B2B customer market research needs. Turkcell provides a comprehensive market research or performance report to several sectors on brands’ and competitors’ customer profile, branch visits, density metrics, and purchasing behavior. This serves as an innovative and data-based alternative to traditional market research. Also, base station signals are used for location analytics and mobility index projects to create data-based decision-making process for transportation and public sectors, or help companies boost their outdoor marketing activities by enabling them to find the best locations that match their brand. At the end of 2020, Turkcell launched its cloud-based Insights as a Service Platform to serve B2B customers. Analytics as a Service (Business Analytics) was launched in 2020. By using this platform, Turkcell has developed unique solutions to enrich customer offerings by analyzing the behavioral data of Turkcell users. These services help customers improve their analytics models, such as credit risk scoring, fraud scoring, digital customer scoring and customer segmentations. In 2021, test analytics scenarios (PoCs) have been implemented with several firms from different sectors. Successful PoCs in mainly finance and e-commerce sectors have been achieved and new sector-based use cases have been created from these PoCs. Industry Specific Solutions Besides its value-added IT services, the company implements digital transformation projects with its consultants, who are experts in their fields, designing vertical solutions that address the needs of each sector. For its target sectors including health, education, manufacturing, retail, central and local authorities, logistics, finance, energy, tourism and SMEs, the company offers solution sets that meet industry specific requirements. In health industry, as a system integrator who provides and operates all relevant technology services and solutions, the company holds a leading position in the public-private partnership (PPP) City Hospitals market in terms of both the number of beds and the number of hospitals. Seven city hospitals (Yozgat, Adana, Eskisehir, Elazig, Bursa, Basaksehir and Tekirdag hospitals) are in operation and the entire technology infrastructure, from hardware to software and from systems to operations, is managed by Turkcell. As of 2022 year-end, total bed capacity of 7 PPP hospitals is over 8 thousand, strengthening its market leadership. In addition to Public Private Partnership (PPP) City Hospitals projects, the company also executes, additional system integration projects, such as vaccine tracking system, electronic emergency case system for ambulances and health provision system for Turkish Parliament. Yozgat Hospital, the first city hospital awarded with HIMSS7 certification in Turkiye by 2018, has renewed its HIMSS7 certification in November 2021. That is the highest level of the HIMSS certification and is the only accepted international standard regarding the digitalization level of a hospital. With its experienced consultants, the company follows industry-specific digital transformation trends and provide end-to-end solutions by using new emerging technologies, such as IoT, big data, AI and machine learning. In manufacturing industry, the company has implemented Industry 4.0 projects which enable companies to harness the power of data in order to streamline their operations. Several Industry 4.0 projects have been implemented in pharmaceutical, heavy industries, oil and gas and automotive supplier industries in 2022. Analyzing dynamic and real data through the company’s big data services, it supports its customers’ strategic decision-making process, thus contributing to their profitability and efficiency. As part of the digital transformation journey of organizations, the company meets all their needs end-to-end, ranging from team and document management to digitalization of financial processes and staff trainings. The company also provides various solutions for cities’ fundamental needs which are mostly positioned on a single Turkcell Smart City Ecosystem including Smart Transportation, Energy, Living and Environment. In 2021, the company has started implementing Intelligent Transportation Systems projects for the first time. The company supported digital transformation of public transport especially for taxis and buses. Also, the company is working on using GSM-based data to make contribution for urban mobility plans in cities. Additionally, Turkcell Digital Business Services showed its intention to collaborate with global partners on possible Smart City projects. The company also helps central authorities to provide technologies for nationwide projects regarding industrywide problems. Fire Detection Project is one of the company’s projects that it has designed for Ministry of Forest in which image processing and AI technologies are used for early warning of forest fires. Partner Ecosystem and Vendors The company works with around 300 partners in its ecosystem. The company has consolidated its partners in four different categories: Sales Partners: Through its sales business partners, the company focuses on creating new sales prospects for its products, services and system integration projects. The company’s wide network of these companies enables its services to achieve sales targets. Project Solution Partners: The company delivers project-based hardware, software and managed services solutions to its corporate customers together with its project solution partners. Product Solution Partners: Product solution partners offer and/or develop specific corporate product solutions for Turkcell corporate customers. Reseller Partners: Reseller partners buy product and service solutions from Turkcell and sell it to corporate customers. In 2022, the company continued the Partner Program, which was launched in 2020, where it has created an incremental value of partnership for nearly 40 sales business partners of different competencies in its ecosystem. In 2022, the company continued the Partner 360 Program, which was launched in 2021, in order to constantly develop its partner ecosystem with best partners to achieve successful business results. With the Partner 360 Program, the company wants to manage business partners it works with, in different business areas with end to end solutions. With its global vendor partnerships, the company is deepening and adding new ones to the IT projects it implements for its customers by combining its ever-increasing competencies and extensive sales force. Techfin Services Turkcell focuses on techfin services through the company’s digital payment services platform, Paycell, the company’s finance company Financell, and insurance business through its insurance agency Turkcell Sigorta, as well as newly established digital insurance company. Paycell was established to provide techfin services including mobile wallet, direct carrier billing (Pay Later), intracity subway/bus card uploads (istanbulkart), utility payments, money transfers, prepaid cards (physical and virtual), Vitrin (e-commerce solution), Payment Link, QR code payments and POS solutions. The company is committed to capitalizing on this well-established payment platform by leveraging its technological know-how, as well as its advanced infrastructure. Paycell Vitrin is an e-commerce platform where everyone can quickly register and create special product links and shop pages without the need for agreements with banks, technical integration and additional costs. Paycell Vitrin enables users to share these links on any channel and receive payment via debit/credit cards and sellers can manage orders from their panels, make shipments with contracted cargo companies, and track shipments with cargo integration. For its customers, Paycell, through the Paycell mobile application, offers various services, including quick and easy payments via QR code, easy money transfers, loyalty advantages and cross-promotions, which position Paycell as a Super App. Further, Paycell’s core value proposition for merchants is the ability to know their customer base better, offer targeted deals and a quick and easy method of payment, which at the same time, accumulates customer data for the merchant. Paycell also offers other tailored payment products, enabling both online and offline payment methods, for merchants of various sizes and needs. Paycell manages a global business plan to expand its operations to Turkish Republic of Northern Cyprus and Germany with the same product portfolio in Turkiye. As of December 16, 2022, Paycell Europe has launched international money transfer application on Android platforms. Moreover, regulatory environment, which has become more supportive following the introduction of recent legislations mainly on open banking, and e-money, also has the potential to positively impact techfin activities. The company’s finance company, Financell, serves to meet the financial needs of individual and corporate customers for their technology products. Financell launched consumer loans via Paycell platform and automobile loans via merchant partnerships. Established as a subsidiary of Financell, Turkcell Sigorta provides insurance agency services on device protection, personal accident insurance, bill protection, complementary health, compulsory earthquake and travel health products. Wholesale International Roaming The company’s international roaming strategy has always been to achieve vast international coverage for its customers by providing continuous communication wherever they travel and to enable international visitors to enjoy the service quality of Turkcell. The company’s coverage extends to many countries around the world through its roaming agreements. On May 5, 2022, the company launched the first VoLTE outbound service in Turkiye. On June 29, 2021, the company launched Non-Standalone (NSA) 5G roaming services for its subscribers in various locations around the world. As of December 31, 2022, the company’s subscribers experienced NSA 5G roaming services with 71 operators in 46 destinations. On January 20, 2015, the company launched LTE roaming services for its subscribers in numerous locations around the world. As of December 31, 2022, the company’s subscribers experienced LTE roaming services with 342 operators in 144 destinations. The company provides LTE roaming services for visitors. The company provides international GPRS, MMS and 3G services. The company provides roaming services for both postpaid and prepaid subscribers of foreign mobile operators visiting Turkiye. As of December 31, 2022, the company’s subscribers can send international SMS to various destinations that its three SMS hub vendors cover. The company has entered into direct international roaming agreements with GSM operators around the world, including in Cuba, Iran, Sudan, Libya and Syria. Wholesale Voice Turkcell and Turkcell Superonline together supply wholesale voice service by establishing interconnection agreements with fixed line and mobile operators and international carriers. As of December 31, 2022, Turkcell Superonline had interconnection agreements with over 100 national and international carriers. Turkcell has interconnection agreements with Turk Telekom, Vodafone, TT Mobil and other Fixed Telephony Service Operators and via these agreements, parties connect their networks to enable the transmission of calls to and from their mobile communications system. As of December 31, 2022, Turkcell had interconnection agreements with over 70 fixed line and mobile operators and carriers. As of December 31, 2022, Turkcell had agreements with 9 Directory Service Providers. A full MVNO agreement was signed between Turkcell and Netgsm, a local telecommunications company, on November 5, 2020. For Turkcell, in Turkiye, interconnection rates are set by the ICTA’s decision on mobile termination rates (MTRs) and fixed termination rates (FTRs). Wholesale Data The company has developed a robust infrastructure which includes 13 border crossings from Turkiye to other jurisdictions. Five border crossings are towards Europe where the company offers various options to connect with important European cities through protected and completely separate routes. Eight of the border crossings are towards the East, where the company offers capacity services to Middle East, CIS and Asia. In accordance with its strategy, Turkcell Superonline is also establishing and executing a domestic wholesale business strategy to provide wholesale products such as bit stream access via its FTTx fiber coverage, infrastructure services, backbone transmission, Ethernet, IP transit capacities, cyber security and VPN services to operators, service providers and data center companies in the domestic market in Turkiye. Turkcell Superonline is leading the localization strategy for Turkiye’s data and internet traffic by developing partnerships with national operators, internet exchange platforms, Tier-1 operators, global/local content and cloud service providers to enable direct access to all networks and also commercializing internet traffic. Turkcell Superonline has been taking important steps to develop Istanbul as the world’s newest and important internet and content base due to its geostrategic location by successfully handling the transformation of Silk Road into the Fiber Road. Accordingly, the company provides a bridge between east and west, which supplies a continuous connection with partnerships, the Tier-1 operators and strategic partners between Asia, the Middle East and Europe. Turkcell Superonline provides telecom services to more than 150 international operators, including Tier-1 companies, Content Delivery Networks (CDN) and OTTs. As of December 31, 2022, the company had the capacity to carry more than 15 Tbps of international traffic. Tariffs The company’s charges for voice, data and digital services consist mainly of bundles and also monthly fees, subscription fees, and volume discount schemes and options under various tariff schemes. The company has various segmented tariff plans for mobile that target specific subscriber groups (postpaid or prepaid, corporate or consumer). A majority of the company’s customers choose all inclusive packages, which include minutes to Turkcell and national calls, intra company calls (for the corporate segment), SMS and data. Comfort Packages is a payment plan structure launched through which subscribers enter into a postpaid subscription contract under which monthly renewal is not mandatory and where add-on packages may be purchased via top-up packages. Mega Plan for postpaid customers is a differentiated tariff structure offering large data quota that is available for a longer time frame. Its users pay monthly for yearly quota; consume as per their own usage habits, enjoying an experience without the feeling of being restricted in monthly time limitation for the data quota. Prepaid Mega Packages offered to Turkcell customers as 3, 6 and 12-month offers, providing a longer-term of use. During the pandemic period, these packages were useful to reduce physical contact especially for the company’s elderly customers, who prefer physical stores to purchase packages and have low mobile application usage. Launched in 2021, Kids Comfort packages are specifically designed for 7 to 15 years old children. Turkcell Puzzle, the package in which customers create their own package contents, was launched in March 2022. In this non-contract package, 1GB/250 minute/1000SMS/2GB Internet (only available for social media), customers choose according to their own needs. The customers can change the package content, any time, through the Turkcell application. Billing is done on unit price. At the same time, the company has positioned a simulation on its website so that customers can experience it without buying the package. Thus, the company also contributed to digitalization. Flexible Package is a new plan for postpaid customers, launched in 2022, adapting to the company’s customers’ usage. Data usage needs of the company’s customers may change over time. With customer insights as its focus, the company introduced two new features to its prepaid customers, especially for their need to avoid waste and provide convenience. Prepaid customers can buy the feature of doubling the internet in their package or extending the duration of their package for one week. Thus, the company offers a more flexible world to its customers by offering a GB solution to customers and an additional time solution to customers have an excess of data. Turkcell’s fixed offers are based on speed and quota. The tariffs are designed by taking different needs of each customer segment into consideration. Turkcell’s own fiber infrastructure enables fiber offers with speeds of up to 10 Gbps, which the company usually offers as bundled with its TV product. Turkcell’s ADSL service offers speeds up to 16 Mbps which can be offered as bundled with fixed voice service. VDSL service provides higher speeds of up to 100 Mbps. The company’s cable internet offers are at speeds up to 35 Mbps. The company’s FWA service Superbox offers are at speeds up to 375 Mbps with a minimum speed of 10 Mbps. Turkcell’s strategy is to provide the best customer experience through enriched value propositions and over a well-invested infrastructure. Consumer Tariffs and Loyalty Programs The company mainly offers bundled tariffs including voice, data and SMS. The company focuses on providing a leading mobile experience in Turkiye, and in order to meet customer needs in different segments the company offers a large portfolio of tariffs. Data quotas have become the key selling point in the company’s tariffs which are enriched with its digital services. The company’s postpaid mobile tariffs are generally for a 12-month commitment. In fixed broadband products (fiber, DSL and Cable internet), the company has various tariffs for different internet speeds and quota. The company offers 10 Mbps to 10 Gbps internet speed for fiber internet, which it serves through its own infrastructure. The company’s fixed broadband tariffs are generally for a 12-month or 24-month commitment. The company offers IPTV service, namely TV+, bundled only with its fiber internet service on its fiber infrastructure. The company’s fixed voice service is bundled with its fixed broadband service. Further, the company also offers tablet, smartphone and new technology device campaigns with fixed broadband internet packages. In 2020, the company launched TV+ Ready, which enables TV+ to be used by any fixed broadband technology. For households that are at locations without its fiber infrastructure, the company offers FWA service Superbox, serving through its 4.5G network. Superbox device is included in the subscription plan. With a customer-oriented focus, Turkcell offers alternative options depending on their roaming frequency. All Turkcell postpaid customers can enjoy Roam Like Home offer, enabling them to use their tariff at home while abroad by paying an additional daily fee. The company has three applications called Platinum, GNC, and Turkcell Bizce which serve as platforms for its loyalty programs. Platinum is Turkcell’s premium customer program for both consumer and corporate subscribers. Customers who use Platinum and Platinum Black tariffs are eligible to use the privileges Turkcell Platinum offers through a special application designed. Platinum tariffs start from a minimum TRY 222 in acquisition and include richer package contents. The Platinum app offers one-on-one 24/7 customer service and gifts that suit the lifestyle of Platinum customers. Weekly discounts at popular online shopping brands, free monthly subscriptions for digital TV platforms, free GBs, device and accessory gifts, airport transfers, car wash services at numerous locations are amongst the gifts that are offered through this Platinum program. GNC is a mobile application that offers entertainment and favors for youth segment users. New entertainment platforms have been launched on GNC in order to increase engagement and to provide advantageous offers and gifts. Young users can play mini games, attend game tournaments and win prizes on GNC. GNC also shares surprise data offers twice a week through gamification scenarios, such as Crack the Egg and provides discounts and gift cards from youth’s favourite brands in a new platform galaxy, where they collect stars to redeem gifts and discounts. Turkcell Bizce is a platform aimed at women that supports personal development and economic engagement for women. The platform provides customers free data packages via collecting coupons which also has tutorial videos and inspiring contents, as well as games and special brand offers. The usage of Turkcell Bizce is data free, and the design of the application offers a seamless customer experience. In 2023, the company will continue to contribute to the company KPIs with its Shake & Win innovations and make its customers experience the exclusive content of Turkcell. In addition, considering the increasing value of the mobile gaming industry among young consumer segment, the company offers mobile tariffs and additional packages for gamers, which is used in selected popular games. Corporate Tariffs and Loyalty Programs The company focuses on meeting the diverse needs of various corporate customer segments thoroughly, combining connectivity services with the digital transformation business solutions. The company addresses the needs of all sectors with tailored offers, coupled with the best network and service experience. The company offers different options of bundle packages, including voice minutes, data, SMS, company on net, roaming and international minutes. One of its key focuses is to provide the company’s corporate customers with the best internet experience in both fixed and mobile connectivity. Through Turkcell Superonline’s independent fiber backbone, as well as the DSL infrastructure of the incumbent fixed operator, the company delivers fixed internet services. As it aspires to become corporates’ technology partner in their digital transformation journey, the company also provides a wide range of integrated services and solutions for them through its subsidiary, Turkcell Digital Business Services. These services include cloud services, security solutions, systems integration, the Internet of Things (IoT), M2M Communication and Artificial Intelligence. The company also wants to provide resources for small businesses to run their daily business prosperously by delivering attractive co-branding offers and innovative products. In that regard, the company launched its‘We Stand for Small Business’ platform in 2021. The company offers privileges in three categories; decrease expenses, increase income, start selling online. With the motto SMEs Are Going Digital the company carries out collaborations and communication activities to raise awareness about why SMEs need digital transformation. With its digital transformation consultancy, the company offers technological solutions to the needs of SMEs within the scope of cloud, security and business applications, which it segments according to their digitalization needs under 3 main headings. In this way, the company provides the opportunity to move their business to digital, grow and manage their business digitally. The company offers its corporate customers a new loyalty program through which it provides brand new advantages. In that regard, Turkcell Plus loyalty program serves companies’ digital transformation journey, saving their expenses and providing campaigns for their employees. As Turkcell, the company creates bilateral loyalty and use the program for a win-win relationship. Wholesale Tariffs Based on Turkcell’s roaming agreements, Turkcell hosts subscribers of foreign operators on its network. When a subscriber of a foreign operator makes a call using Turkcell’s network, that subscriber’s operator pays the company its inter-operator tariff for the specific call type. Inter-operator tariff is a wholesale tariff applied between mobile operators with roaming agreements. Interconnection rates in Turkiye are based on the ICTA’s decision on the interconnection tariffs for Turkcell, Vodafone, TT Mobil, Turk Telekom and fixed telephony service operators. With respect to data sales, Turkcell intends to provide competitive prices to promote Istanbul as a regional hub for peering and IP transit services and international capacities, as well as to support the domestic wholesale market through its robust network with feasible commercial conditions. Churn In the first quarter of 2017, the company’s mobile churn policy was extended from the regulatory minimum in Turkiye of 9 months to 12 months, except with regard to prepaid customers who last topped up before March of each year, which will be disconnected by year-end at the latest. Seasonality Historically, the effects of seasonality on mobile communications usage has positively influenced the company’s results in the second and third quarters of the fiscal year and negatively influenced its results in the first and fourth quarters of the fiscal year (year ended December 31, 2022). These seasonality effects have been less significant as the company typically launches market campaigns to address the change in demand levels. Local and religious holidays in Turkiye generally affect its operational results positively through higher consumption. In 2022, the company saws a trend gradually approaching the pre-COVID-19 era as the pandemic restrictions ease. Mobile and Fixed Network Coverage The company’s mobile communications network is designed to provide high-quality coverage to the majority of Turkiye’s population throughout the areas in which they live, work and travel. Coverage also includes a substantial part of the Black Sea, the Sea of Marmara, the Mediterranean Sea and the Aegean Sea coastlines of Turkiye. The company enhanced coverage in sparsely populated areas (populations of less than 1,000 people) as well. In terms of 2G, the company has significantly exceeded the minimum coverage requirements of its license. As Turkcell, the company works diligently to fulfill the regulatory coverage obligations in relation to its 2G, 3G License Agreements and IMT Authorization on time. The company commercially launched 3G simultaneously in 81 provinces and major cities in Turkiye in July 2009. Benefiting from higher-quality communications provided by the widest spectrum in 3G, Turkcell will continue to offer seamless communications services to its customers. The company has also expanded its mobile communications network to add capacity to existing service areas and to offer service to new areas. In addition, in 2018, within the scope of the Ministry of Transport and Infrastructure’s Rural Coverage Project as part of universal services, which it started in August 2013, about one thousand 4.5G base stations covering 1,623 villages with populations of less than 500 were installed. As per the universal service obligation, the network infrastructure serving these areas has to be shared by all operators. People living in these villages are served by LTE services (in addition to 2G) in a similar service quality provided in the urban areas. ULAK’s (local network vendor producing 4.5G base stations) 4.5G radio equipment was used markedly, corresponding to about half of total deployments. In January 2022, the ownership of the Universal Service Network was transferred from the Ministry of Transport and Infrastructure to the ICTA, which subsequently authorized Turkcell to operate Universal Core Network and Transport Network lease lines. In 2022, the company has continued to develop and improve the coverage and capacity of its network. The company’s FWA service, Superbox, significantly helped to alleviate indoor coverage and capacity requirements that resulted from this shift. The company has been able to adapt its mobile network to these changes via its spectrum refarming efforts and the flexibility inherent in its investment strategy, providing coverage and capacity where needed. The company’s fixed communications network is designed to provide high capacity and high-quality service to consumer and corporate customers. The company’s fixed network has the capability to carry large volumes of data and internet traffic through the country, and is also connected to national and international telecom operators. As of December 31, 2022, the company’s own fiber network reached 60 thousand kilometers and connects all cities across Turkiye. In 28 cities the company has FTTH network and home pass, whereby the number of premises that are connected to its fiber network has reached nearly 5.4 million. Through partnership engagements, the company has become capable of delivering fiber and cable (hybrid-fiber coaxial) internet service to an approximately 2.9 million additional households (by its calculation), by which it reaches to 35 cities in total. The company also provides enterprise Wi-Fi services. In the fixed access network, the company has two main network structures called fiber to the building (FTTB) and FTTH. The company started a FTTB transformation project to convert its FTTB network to FTTH network. With this transformation, the company will be providing multi-gigabit services to its customers and aim to reduce its carbon footprint. In FTTH networks, the company is installing Gigabit Passive Optical Network (GPON) and 10-Gigabit-capable symmetric passive optical network (XGS-PON) equipment, which is the latest access network technology for residential and corporate subscribers. These network structures enable Turkcell to offer high speed internet, TV, Voice over IP. The fixed access network also provides bandwidth requirement for mobile sites with metro ethernet services. The company provides FTTH services to customers in 4 cities of the 11 provinces that were impacted by Southeastern Turkiye Earthquakes, therefore the impact was rather milder than its mobile network base. As of the end of February, less than 100 km of fiber network repairs are underway, including enhancements in the company’s fiber infrastructure, as well as fiber investment for mobile network and back-up capacity constructions. Quality of Service Turkcell has one of the best 3G and VoLTE dropped call rates compared to other networks around the world. The company has been offloading voice and data traffic by utilizing small cells in the network for an improved customer experience. Together with Turkcell Superonline, the company has also implemented Wi-Fi offload integrated with the Turkcell 3G and 4.5G networks to further enhance the customer experience. Additionally, the company is using a variety of solutions, such as the Special Distributed Antenna Solutions (especially for major stadiums), indoor active systems that simplify deployment and streamline capacity/coverage expansions, and outdoor products to optimize the coverage and capacity of its Radio Access Network. On the fixed network side, the company monitors traffic utilization in its access network continuously to prevent any saturation and upgrade the capacity as soon as possible. Turkcell modifies and redesigns the network topology to meet the future requirements which allow it to improve its quality of service performance. Network Evolution Radio Network With the 172.4 MHz spectrum acquired in the 2015 auction, Turkcell spectrum holdings reached 234.4 MHz, corresponding to 43% of total spectrum assets available to mobile operators in Turkiye. Leveraging the advantage of the company’s large spectrum assets and significant network infrastructure investments, its 4.5G network capability evolved from peak speeds of 375 Mbps to 1600 Mbps over the time. Turkcell’s 4.5G network supports LTE Advanced Pro technology, providing high-end features like 4x4 MIMO, 256QAM, 3-4-5 Carrier Aggregation, Narrow Band IoT (NB-IoT), eMTC (enhanced Machine Type Communications), and LAA (Licensed Assisted Access). Although the 900 MHz band is primarily used for GSM900, the company has rolled out UMTS900 to provide a much stronger 3G coverage layer for its 3G customers and voice calls redirected from the 4.5G network via a technique called Circuit Switched Fallback for deep indoor and improved rural coverage. This has been possible with certain previous activities, such as Thin Layer Project for GSM 900, by which the company have extracted enough spectral capacity to partially re-farm the 900 MHz band for UMTS. As the next step, the company has started deploying a second UMTS900 carrier, which leads to a more efficient utilization of 900 MHz spectrum and generate additional capacity. As the company migrates 3G traffic to 900 MHz from 2100 MHz, it gains a capacity boost in the 2100 MHz band, which has already been in part repurposed for LTE. In this regard, the company has deployed LTE in the 2100 MHz band, previously used by 3G only, to attain better spectrum efficiency, enlarge its 4.5G footprint in an improve end user experience. The company uses the 900 MHz band for 2G and 3G, the 2100 MHz band for 3G and 4.5G, and the 800 MHz, 1800 MHz and 2600 MHz bands for 4.5G. For voice services, Voice over LTE (VoLTE) has been supported from day one to provide voice services over the company’s 4.5G network. The company activated EVS (Enhanced Voice Services) on its VoLTE voice service to further enhance the voice quality and thus became one of the first mobile operators in the world supporting this high-end feature. In order to provide a solution for VPN over wireless technologies like 4.5G, the company has announced the Mobile VPN offer to its corporate customers. Through this solution, corporates are able to connect to the internet cloud over a wireless interface using 4.5G technology, without sacrificing their service quality requirements. Through its ongoing investment in 4.5G infrastructure, the company became the first operator in Turkiye to support NB-IoT and eMTC (LTE-M), which are required for a new generation of innovative IoT applications on 4.5G networks. These technologies are available on request across its entire 4.5G footprint and enable machines to communicate more effectively. Furthermore, through the company’s LTE-M network support which enables fleet management, asset tracking and micromobility (such as rental scooters), it is able to provide higher data transfer throughput and have better mobility for IoT communications. The company provides a Wireless to the Home or FWA service Superbox, which offers wireless high-speed internet access for customers without fiber connectivity. The service uses 4.5G network as a backhaul to provide internet connectivity at the company’s customers’ premises. Offering a unique experience to the company’s customers with its strong 4.5G infrastructure, it continues its efforts to prepare its network for 5G. The company has started to use the Massive MIMO technology for FDD and TDD, which can be deployed to meet capacity demands in dense areas. These collective activities help the company to maximize spectral efficiency, further enhancing network capacity and improving overall user experience. Furthermore, the company has been closely cooperating with its network vendors for long term prospects through projects that enable Turkcell to deploy the latest technologies even before their availability on the market. Turkcell continues to provide extensive support to projects involving domestic products, mainly for fulfilling obligations related to the usage of domestically produced network equipment as per the 4.5G license. The company cooperates with domestic companies regarding base stations, antennas, transports and infrastructure solutions. For example, the ULAK Project initially started as an initiative of the Undersecretariat for Defense Industries (UDI), aimed at designing and developing national software and hardware components for an LTE-Advanced communication system and enhancing Turkiye’s self-sufficiency in this area. ULAK has become a network vendor, producing 4.5G base stations. In the scope of 5G and beyond communications, the company contributes to the activities of international organizations, such as 3GPP, ITU-T, GSMA, NGMN, ONF, TIP, and 5G IA (the private arm of 5G-PPP, which is 6G Smart Networks and Services Industry Association (6G SNS-IA)), by attending meetings, joining work groups, projects and programs that help it follow the latest developments in next generation technologies and shape its future strategies. Within the context of this objective, Turkcell became one of the leaders of NGMN’s 5G Pre-Commercial Networks Trials project in which the earliest 5G equipment prototypes were tested in the field. In addition to technology organizations and vendors, Turkcell engages with universities and research centers. Specifically, enhanced Mobile Broadband and Ultra-Reliable-Low-Latency Communication use cases are thoroughly studied with Istanbul Technical University and Istanbul Medipol University, respectively, through TUBITAK-funded R&D projects. With the leading global vendors, including Ericsson, Huawei and Samsung, the company has been demonstrating and trialing 5G. Within the scope of the first 5G use cases, the company tested FWA and AR/VR to take additional steps into the 5G era. The company continues its trial and demo projects with all possible vendors and reach out to new vertical sectors. Furthermore, the company leds the 5G network deployment at Istanbul Airport, which is an active sharing solution serving three mobile operators. The network is in the 3500 MHz band in which each operator is assigned a 100 MHz channel bandwidth. Although the frequency auction of this band has not yet been launched in Turkiye, the ICTA has given a special permission to mobile operators to deploy 5G solutions on this band. The 5G network at the Istanbul Airport became the first commercial 5G network utilizing new 5G frequencies in Turkiye. Transmission Network Turkcell is the first operator in Turkiye to start deploying All-IP NodeBs throughout its network. The company has an All-IP mobile backhaul for BTSs, Node-Bs and eNodeBs that provides resiliency, ease of operation and operational expense advantages. In addition, the company has invested in topology redundancy projects due to its IP/MPLS backhaul for better service availability. Transmission network services on DWDM provides 100Gbps and 400Gbps service capacities for inner IP Core Network routers optimizing use of existing wide area fiberoptics deployments. The company successfully completed a renovation program in order to converge fixed and mobile backhaul transport networks in 2020. All fixed and mobile transport-IP network were converged with high scale and the leading-edge technology routers in order to be ready for the capacity demand of 5G applications. Core Network Turkcell provides voice services over 2G and 3G access, HD voice services over 4.5G access using both VoLTE and VoWiFi technologies, and fixed voice services to consumer and corporate customers. The 2G and 3G voice services are provided by IP based layered Next Generation Network (NGN) infrastructure. The VoLTE and VoWifi voice services for 4.5G subscribers are provided by IMS (IP Multimedia Subsystem) and all subscribers can use seamless HD Voice technology via VoLTE and VoWiFi infrastructure. Seamless handovers are performed between VoLTE and VoWiFi, and between VoLTE and 2/3G technologies in the company’s core voice network. Fixed voice services are also provided by dedicated IMS infrastructure. The company’s entire voice network has all levels of geographic redundancy. The control layer (central sources) provides voice services from four central data centers that fully back up each other. The voice payload layer (local resources) is spread over many locations that are close to the subscribers. IMS voice network is deployed and expanded on virtual telco cloud infrastructure due to its low cost and flexibility advantages. Turkcell provides a wide variety of data services to customers through high-speed and low latency data connectivity. The company’s access agnostic broadband core network architecture consists of 3GPP compliant network entities supporting mobile 2G, 3G, 4.5G and fixed access technologies. Evolved Packet Core systems for mobile broadband and Border Network Gateway systems for fixed broadband provide geographically redundant and high available telecom grade broadband services to its customers. The Control Plane entities are located in central data centers. The existing network of Turkcell is 5G NSA ready and Turkcell plans the next steps of 5G journey to introduce new 5G services by considering the roadmap of network technologies and market demand. In respect to the company’s sustainable network initiatives, it has completed analysis and pilot tests on IPv6 network evolution and part of its mobile and fixed network traffic is carried using IPv6 technology. Monitoring KPIs related to the architectural components of the virtual infrastructure and the ability to implement root cause analysis regarding the relationship between these components are crucial in sustaining the quality of network services offered to the company’s customers. In this respect, the company is evolving and expanding its core network on telco cloud infrastructure through integrating and utilizing the network services into its Service Assurance platform which is a part of overall service assurance of Turkcell network. Fixed Network The company’s own fiber optic network provides up to 10 Gbps high speed internet service in 28 cities across Turkiye. The company is installing and investing in EDGE technology access equipment in its network. The company offers 10 Gbps high speed internet as an on-demand service since February 2018. During COVID-19 pandemic period, the company have increased its in-home investments and provided the first Wi-Fi 6 supported Home-Gateways, which significantly increase in-home service experience. The company also initiated virtualized access network projects and has been actively involved in Open Networking Foundation (ONF) projects, which promotes experience sharing and early adoption of future technologies, and assisted in its early phase development. The company is providing end-to-end Wi-Fi services for its enterprise customers, which enables their guests to access Wi-Fi. The Enterprise Wi-Fi service includes installation with authentication services, and further provides the necessary interface. Furthermore, Turkcell has launched commercial 400 Gbps in its backbone. The company is continuously investing in its backbone network in order to be prepared for bandwidth-intensive services with the latest technology. Fixed networks provide backhaul that not only connects the signal towers to the telecom network, but also allows for enough bandwidth to support operations in 4.5G. This is creating an environment in which optical cabling and fiber to Ethernet media converters are among the most important parts of a mobile network. As a result, fiber will remain an integral part of telecom networks. Services and Platforms The company has an intelligent network and other service platforms enabling its services and it also provides secure and controlled access to the network for the content and service providers to provide messaging and data services. This infrastructure is being improved to open up more capabilities on the network for the application and content providers. New infrastructure also contains a portal where subscribers buy services, receive promotions and enroll for campaigns easily. Network Operations The company has primarily employed experienced internal personnel for network engineering and other design activities, while employing suppliers for its network infrastructure and as its partners in product/service development. The company’s suppliers install the base station cell site equipment and switches on a turn-key basis, while subcontractors employed by its suppliers perform the actual site preparation. Network Maintenance The company has entered into several system service agreements. Under these agreements, the company’s mobile and fixed communications network, including hardware repair and replacement, software and system support services, consultation services and emergency services are supplied by local providers. The company’s subcontractors perform corrective and preventive maintenance on its mobile and fixed communications network in the field, although providers repair all the network equipment. The company has regional operation units with qualified Turkcell staff that operate and maintain its network in Turkiye. In addition, the Turkcell Service Operation Center located in Istanbul monitors the company’s entire network 24 hours a day, 365 days a year, and ensures that necessary maintenance is performed in response to any problem. Site Leasing The company’s technical staff identifies the best means of connecting the base station to the network. Once a preferred site is identified and the exact equipment configuration for that site is determined, the company starts the process of site leasing and obtaining necessary regulatory permits. Site leasing processes and construction of the masts or towers are performed by the company’s wholly-owned subsidiary, Global Tower. The company leases the land and provides site management services (yearly rental payments, contract renewals, rework permits) through Global Tower. The company also manages all these processes for technical demands for Turkcell Superonline and Global Tower. Internal Control and Continuous Improvement The company is responsible for analyzing risks and priorities related to processes under its purview, and for planning a risk-based internal control study, which is carried out on a routine basis, using manual or automated tools. Other areas of the company’s responsibilities are to carry out internal audits regarding the obligations of the Turkcell Group’s ISO certificates within the scope of legal regulations and to monitor Turkcell internal/external audit findings. ISO27001 and ISO27017 certifications are an international framework that helps companies protect their financial data, intellectual property and sensitive customer information. Business Continuity Management Turkcell Business Continuity Management (BCM) identifies potential threats and their impact and provides a framework for building resilience with the ability to create an effective response that safeguards the interests of the company’s key stakeholders, their reputation, brand and value-creating activities. The company established the Business Continuity Management System (BCMS) to implement, operate, monitor, review, maintain and improve the business continuity. Turkcell BCMS is assisted by business continuity coordinators at technical and non-technical groups. Regular BCM training and awareness programs are carried out throughout the organization. The effectiveness of BCMS is monitored every year through internal/external audits, and integrated exercises, the results of which are reviewed in management review meetings. In 2022, the company exercised and tested its business continuity plans, communication and warning procedures to ensure that they are consistent with the business continuity objectives. Turkcell BCM focuses on the digitalization in the context of business plans, by providing business resilience, corporate memory, flexibility, integration and interactivity relation between business and technical services. Turkcell’s BCM will be able to cover the majority of Turkcell’s operations through potential environmental events and natural disasters. The company’s purpose is to ensure the continuity of the voice call, messaging, data/internet, data centers, hosting services; operation and maintenance of infrastructure/sites; availability of instant messaging, videoconference, corporate e-mail and file storage digital services for Turkcell Group companies within the scope at acceptable predefined levels following disruptive incidents. The company is continuously improving its business continuity capacity in accordance with the ISO 22301 Societal Security, Business Continuity Management System internationally while preserving its image as a reputable and solid integrated service provider. Turkcell Service Continuity Management aims to ensure the continuity and recovery activities of the services provided to the company’s customers, by providing the continuity of the service commitment levels, managing the risks that may affect its services, including disasters and emergencies, and supporting the Turkcell Business Continuity Management System. Turkcell has also developed a Crisis Management Plan, which is aimed at effectively managing a crisis, including fire, terrorism, operational interruption, cyber attack, food poisoning, epidemics and natural disasters (flood, earthquake, landslide). Turkcell’s Crisis Management Plan exercises, training and awareness activities are carried out periodically with the participation of crisis management teams and related groups. Enterprise Risk Management Turkcell’s Enterprise Risk Management (ERM) team is responsible for coordinating the process of identifying, assessing and overseeing actions by management and the company’s business units to manage the risks that may affect the business objectives of the company. ERM supplies an information platform to management regarding the risks that may impact the decision-making process. Turkcell ERM aims to develop an approach of integrating risk management with the core management processes, as well as enterprise risk culture. Turkcell’s ERM team is the owner of an enterprise risk database. A range of management tools are used for risk identification and evaluation such as workshops, brainstorming sessions, risk reporting from division directors and risk contacts, in-depth interviews with the management team and research reports while coordinating the process of identifying and assessing risks. The risks the company monitors in line with the developments in the world are scripted, defined, leveled and recorded. Sales and Marketing The company designs its sales and marketing strategy around subscriber needs and expectations. Sales Channel The company serves through one of the largest retail telecommunications distribution networks in Turkiye, with 1,109 branded (exclusive) stores, many at prime locations, and 4,144 semi-branded dealers (i.e. digital sales points) as of December 31, 2022. The company’s two exclusive distributors provide its products, as well as consumer technology goods (such as handsets, tablets, notebooks, IoT devices, accessories, personal care products, small home appliances, TV and household appliances) and aftersales services to this wide dealer network, while eight exclusive Turkcell Distribution Centers (TDCs) focus solely on semi-branded dealers. The company also has a door-to-door sales force and home technology management team. This provides the company an important channel on which to distribute its integrated solutions directly to home of consumers. The company also operates a dedicated corporate direct sales team of over 756 personnel who can offer tailored solutions in their segment of expertise. As of April 17, 2023, 72% of the company’s exclusive stores in the region are active and in service. The company continues to serve its customers with the containers it placed in the region and also repositioning the products and services it offers both in its active stores and in containers according to the region’s critics and customer needs. The company continues to provide all types of services, digital products and necessary information through its digital channels. In 2021 the company expanded its technological device portfolio to meet the evolving needs of its customers in the aftermath of the ‘new normal’ that was brought about by COVID-19. The company’s distribution network consists of distributors, TDCs, Turkcell branded stores (Turkcell Plus & Turkcell), corporate solution centers, and semi-branded dealers, digital channels and ATMs. The company offers postpaid and prepaid mobile subscription, fixed and mobile tariffs and solutions, Superbox Plug&Play modems and digital service subscriptions through its distribution network. The total number of branded and semi-branded dealers, including corporate solution centers, was around 5,371 thousand sales points as of December 31, 2022. The company’s non-branded dealer network provides it a high penetration across Turkiye. All dealers are compensated based on the number of new subscribers they sign up and the level of those subscribers’ usage, in addition to other performance-based incentives. The company categorizes its alternative sales channels under two main categories: its call centers and non-telco sales. The company offers a fast and secure access to its products and service portfolio on 24/7 basis via its call center, its web site (www.turkcell.com.tr) and the Turkcell Mobile App. The company proactively reaches its customers through its telesales team. The company’s non-telco channel consists of ATMs, call centers, internet branches of banks and chain stores. Alternative sales channels have been the main channel for digital service sales. Along with prepaid top-up sales on the bank channel, alternative sales channels contribute to product sales through various campaigns, including Fizy, TV+, Lifebox and GAME+. Weekly, monthly and yearly packages of these services sold through a promocode model to both Turkcell and non-Turkcell customers. With the sale of the company’s digital products in technology stores and hypermarkets, alternative sales channels increase both the sales of the products and customer awareness through brand collaborations. During 2022, the company’s digital sales channels continued to transform comprehensively. Accordingly, UX and UI components as well as the entire shopping journey are tailored to the needs of its customers. In its digital channels the company has been providing two main platforms: Turkcell’s official website and Turkcell’s mobile application. The primary digital channel is the company’s mobile application, rebranded as Turkcell App, through which it provides its mobile and fixed broadband customers the ability to track their bills and data usage, manage their subscriptions, browse campaigns and offers, buy packages, and reach Pasaj, the electronic marketplace. Turkcell App had 68 million downloads to date and 23 million three-month active users in 2022. The company’s chatbot Turkcell Celly assists Turkcell customers in a fast and easy manner. The company also continued to use the Turkcell App as the platform to offer a successful marketing campaign called Shake & Win, which has delivered 734 million gifts in 2022, where most of these gifts were in the form of data, minutes or trial subscriptions to digital services. The company also made improvements and added new missions and rewards to Turkcell Gift Pool which is a loyalty and gamification hub within which the customers browse and claim gifts, rewards and privileges. This has become a substantive medium for Turkcell subscribers to discover and experience its digital services. In addition, the company rebuilts its in-app search functionality from the bottom up to make finding packages, campaigns, and products simpler and faster. During this year, it has been used by over 7 million customers in each month. The sales journey has been enriched with digital exclusive offers, smart targeting, and chatbot marketing. Customer acquisition journey has been redesigned, and the digital subscription process was simplified with NFC identity verification. The company’s fixed broadband subscribers can also manage their accounts within Turkcell app. Fixed broadband subscribers have made 2.5 million transactions per month by using Turkcell App. With a view to leverage its capabilities in digital channels, in December 2020, the company launched a technology and electronics marketplace (an e-commerce platform) in Turkiye, called Turkcell Pasaj. At Turkcell Pasaj, a wide range of electronic goods, from smart devices to new generation technologies, are offered from several leading suppliers besides Turkcell. Customers are offered different payment alternatives including shopping credit, mobile payment and Paycell digital money, besides debit/credit card and also financing through Financell. Turkcell Pasaj offers same-day delivery in some cities and courier guarantee in one business day. Since September 2021, customers are able to pick up their delivery from any Turkcell store. Turkcell Pasaj platform is developed by Turkcell developers and the company conducts necessary improvements in-house. In 2021, the company integrated Turkcell Pasaj as a core component of the Turkcell app. Turkcell App users - regardless of being a Turkcell subscriber or not - are able to browse the entire Turkcell Pasaj product catalog, compare prices across sellers, favorite or purchase products within the app easily and securely. In 2022, Pasaj continued to grow with new categories both in online retail and the marketplace. With shopping credit launched, Pasaj started to offer new payment alternatives to provide its customers more efficient payment methods. The company also builds the infrastructure for the sales of digital assets, such as digital game pins, courses, and memberships. As a result of this, Pasaj began serving as a digital product marketplace. Since September 2022, Pasaj has entered Azerbaijan as its first abroad market to expand globally. Turkcell also provides turnkey mobile and digital transformation and IT outsourcing projects for large corporations with the contribution of solution partners. Advertising Turkcell has positioned itself as an ecosystem brand, providing a portfolio of both telecom and digital services that add value to its customers’ lives. The company bases its communication efforts on four pillars that underline its strategy and key strengths. Customer and Experience Management The key part of the company’s customer and experience management strategy is to provide its customers with effortless, personalized and consistent experience across all channels. The company continuously ask its customers how satisfied they are with the service they receive and for any suggestions through near real-time mobile surveys. With respect to the provision of customer services, the company mainly works with its subsidiary Turkcell Global Bilgi. Turkcell Global Bilgi is operating in Turkiye and Ukraine. Turkcell Global Bilgi, in addition to conventional call center services, including telesales and collection, also provides research management, customer experience journey design, social media management and technological support services. Turkcell Global Bilgi develops its own digital platforms, such as robotic process automation, cloud-based call center infrastructure and digital assistant. Turkcell’s customer service strategies for contact centers are implemented by Turkcell Global Bilgi. The company audits their operations along with monitoring whether customer services and customer satisfaction programs are executed in line with Turkcell’s customer strategies. Turkcell developed chat-based service channels, where customers can access the company anytime and anywhere quickly and easily without connecting to the call center. Customers can also contact Turkcell via instant messaging to ask a question about their lines or the company’s applications. In 2022, there were around 5.1 million such chat sessions on average per month. With artificial intelligence based chatbot technology, Turkcell has increased the automation level of its instant chat-based services for its customers. Turkcell connects with social media users 24/7 with a total of 65 accounts on Facebook, Twitter, Instagram, YouTube and LinkedIn. With its environmentally friendly invoice project, which the company implemented in 2022, the number of its printed invoice customers which was 1.15 million decreased to 650 thousand. 75% of calls regarding network complaints were resolved over the company’s IVR platform and 50% of network complaints received by customer representatives were resolved at the first contact. The company has been engaging more than 1.5 million university students and is creating customer-focused projects with more than 3,000 university students in Turkiye and Cyprus. International and Domestic Subsidiaries A component of its strategy is to grow or improve its business in the company’s home market and in the international markets where it is already present. Ukraine—lifecell The company owns its interest in its subsidiary lifecell. The company is known as dynamic and innovative as it was the first to introduce a number of new technologies and products in the Ukrainian mobile market. The company is highly motivated to continue its innovation leadership in marketing and sales. There were 460 exclusive lifecell shops in 232 cities across Ukraine as of December 31, 2022. In addition, lifecell products are available at 29 thousand other sales points throughout Ukraine. lifecell also has an online sales channel, shop.lifecell.ua, which was launched in August 2020 as a renewed version. As of December 31, 2022, 4.5G from lifecell is available in 16,592 towns and settlements in Ukraine (excluding Crimea and Sevastopol city and uncontrolled territories of the Luhansk and Donetsk regions). In 2021, lifecell finished its LTE network roll out in Kyiv subway. lifecell provides 3G&4G coverage of 77.7% of the population of Ukraine, or 60.4% geographical coverage, through around 9 thousand base stations (including 677 impaired based stations). In May 2019, lifecell and Ericsson Ukraine deployed the first 5G network demo segment and presented its advanced capabilities at the Sweden-Ukraine Business Forum in Kyiv. On October 29, 2019, lifecell and two other leading mobile operators signed a Memorandum of Understanding with the Ukrainian Government to reorganize radio-frequency resources to the 900 MHz band. It will ensure maximum coverage of the entire territory of Ukraine with 4G mobile communication, including rural areas and main roads. As of December 31, 2022, lifecell is the leader in the Mobile Number Portability (MNP) port-in subscribers. lifecell was also the first among all operators providing its subscribers with a free online registration procedure enabled via BankID. In 2022 lifecell launched MNP online so that subscribers who want to port their numbers to lifecell can do it without visiting an operator’s store. The procedure for transferring a number to lifecell can be carried out with the help of an eSIM or using a new operator’s starter package. lifecell launched its first MVNO partnership in July 2016 with one of the largest national internet service providers (Volia-Cable). By the end of 2022, lifecell had 5 active MVNO partnerships. Among other digital services lifecell customers may choose TV+ for watching TV channels and films, lifecell music streaming service, language learning Busuu service, mobile phone protection from theft and screen protection with Protect Mobile and lifecell Screen services. In 2021, lifecell introduced BiP messenger desktop version and the functionality of transferring messages from WhatsApp to BiP. A new game-based learning application was launched for kids’ education and smart entertainment. In December 2021, lifecell cooperated with WhiteBIT cryptocurrency exchange for future development of innovative financial technologies. In 2022, lifecell and WhiteBIT have developed and implemented technological integration for joining blockchain systems with telecommunications services. The integration enables customers to access the WhiteBIT platform without an internet connection, using the USSD menu on mobile phones. In June 2020, a new online sale experience was launched with fully automated 24/7 sale and immediate delivery of eSIMs to customer’s email. In September 2020, as a first in the Ukrainian market, customers are provided with the option of choosing their phone number when buying eSIMs online. In November 2020, eSIM sales with choice of phone number were launched at EasyPay’s 14 thousand self-care terminals across Ukraine. In 2021 lifecell became the first and only mobile operator to launch eSIM sales via monobank, popular digital Ukrainian bank, application. In 2022 the service of transferring phone numbers from SIM to eSIM in the monobank application was launched. In 2021, lifecell became the first mobile operator to launch an online identification system via BankID with the National Bank of Ukraine. lifecell prepaid subscribers, who are clients of more than 30 partner banks of the National Bank of Ukraine, became able to register online their numbers or switch to a contract form without visiting the operator’s stores. In 2022 lifecell launched the registration of subscribers’ numbers via My lifecell application using digital documents in DIIA. lifecell was the first Ukrainian mobile operator to launch VoLTE and VoWiFi technologies for calls via VoLTE and VoWiFi in 2022. In 2022 lifecell also launched RCS messages for the first time on the Ukrainian telecom market. As of December 31, 2022, BeST had 1.5 million registered mobile subscribers, the majority of which were prepaid, and its three-month active subscribers reached 1.1 million. BeST is the leader of MNP market in Belarus in terms of number of port-in subscribers’ count. BeST has 9 own stores, 117 exclusive and 172 non-exclusive sales points. Sales from its online channel continuously increase with the rising customer demand. In addition, digital subscription packs are sold at more than 2,200 sales points across the country. As of December 31, 2022, BeST operated 2G and 3G services in all cities with a population of more than 10,000, and provided 2G services on all principal intercity highways and roads of the Republic of Belarus, which corresponds to a coverage of approximately 99.8% of the entire population of Belarus, or 93.1% geographical coverage. BeST has a wide range of products in its portfolio, which consists of voice and data products, terminal offers and an enriched digital services portfolio. BiP, fizy, lifebox, Magazines, TV+, Digital Books and Games Platform are the main services in the digital services portfolio. Digital tariff plan Play, which is a unique offer in the market combines all digital services in a single package. BeST is the first mobile operator to launch a digital SIM-card activation service in Belarus in 2020 via a mobile application by using face recognition technology based on a machine learning algorithm. The service was successfully implemented by Lifetech LLC, a 99.9% owned subsidiary of BeST. The company holds interests in several companies outside of Turkiye that expose it to various local economic, business, political, social, financial, liquidity, regulatory and legal risks. Lifetech Lifetech is a subsidiary of Turkcell Group. It is 99.9% owned by BeST and has around 143 professionals located in Belarus as of December 31, 2022. Lifetech provides a full cycle of software development services and develops custom and platform-based solutions to Turkcell Group and other customers and carries out software development projects both in Belarus and other countries. Lifetech is a member of High-Technology Park of Belarus. Kibris Telekom Kibris Telekom is a wholly-owned subsidiary of Turkcell. As of December 31, 2022, Kibris Telekom had 0.6 million registered subscribers. On April 27, 2007, Kibris Telekom signed a license agreement for the installation and operation of a digital, cellular and mobile telecommunication system with the Ministry of Public Works and Transportation of the Turkish Republic of Northern Cyprus. The license agreement became effective on August 1, 2007 and replaced the previous GSM-Mobile Telephony System Agreement dated March 25, 1999, which was based on revenue-sharing terms. The license agreement granted GSM 900, GSM 1800 licenses. The license agreement is valid for 18 years from the date of signing. The license fee was USD 30 million, including VAT and financed by Kibris Telekom through internal and external funds. On November 7, 2022, Kibris Telekom was awarded a 4G-5G (IMT-Advanced and IMT-2020) license and obtained 247 MHz of new spectrum in 700 MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2600MHz, 3600MHz bands, including VAT. Kibris Telekom will be able to start offering 4G services on September 7, 2023, while it will be possible to offer 5G services using 4G spectrum on September 7, 2026, and 5G services on all awarded spectrums including 700 MHz and 3600 MHz bands on September 7, 2028 (with the option of starting one year early in 2027). The 4G (IMT-Advanced) license is valid for 18 years from September 7, 2023 until September 6, 2041 and the 5G (IMT-2020) license is valid for 20 years after the launch of 5G services on 700 MHz and 3600 MHz. In 2012, Kibris Telekom acquired Internet Service Provider and infrastructure establishment and operation licenses. Kibris Telekom applied for a right of way to major municipalities and the Ministry of Transportation in order to establish a national fiber optic infrastructure. On January 24, 2014, a protocol was signed between Kibris Telekom and the Ministry of Transportation for the right of way for highways. Total fiber optic infrastructure implementation was at 69 kilometers by the end of 2021. In 2017, Lifecell Digital was incorporated in order to operate as an Internet Service Provider company and offer converged telecom services. Lifecell Digital also acquired an infrastructure license in December 2018. In addition, Lifecell Digital was granted MVNO and call carrier licenses in May 2022. Turkcell Global Bilgi Turkcell Global Bilgi provides telemarketing, telesales, and call center services, particularly for Turkcell Group. Turkcell Global Bilgi manages customer contacts at every channel and offers customer care services to more than 100 companies in banking, retail, e-commerce, insurance, energy, public sector and the airline industry. Turkcell owns approximately 100% of Turkcell Global Bilgi. Turkcell Global Bilgi owns a 100% stake in Global Bilgi LLC, which operates in Ukraine and provides telesales and call center services to lifecell and many other companies in Ukrainian, and English languages. Turkcell Superonline Turkcell Superonline operates in three main segments; consumer, corporate and wholesale. Turkcell Superonline has a wide range of services. Fixed broadband, voice and TV services are provided to consumers. Fixed data, voice, datacenter and cloud along with cyber security services are among the services provided to corporates. Wholesale services include wholesale international and local data and voice services with over 300 business partners. As of December 31, 2022, Turkcell Superonline had 60 thousand km fiber backbone covering 81 cities in Turkiye and has 13 border crossings. The company offers fiber in city coverage in 28 cities and increased its homepasses to around 5.4 million as of December 31, 2022 from around 4.5 million in the previous year. Including partnership engagements, the company is capable of covering around 8.3 million households in 35 cities. Turkcell Superonline aims to continue to invest in and expand its own fiber optic network and further utilize the group synergy created with Turkcell. Turkcell Superonline also has a fixed telephony services authorization, which enables it to provide call origination and termination for consumers and corporations. As of December 31, 2022, Turkcell Superonline had 2.1 million fiber and 1.3 million TV subscribers. Turkcell Superonline began to provide 1000 Mbps service to homes in 2011 for the first time in Turkiye. Turkcell Superonline has rendered Turkiye as one of the first countries where a 1000 Mbps connection is provided to homes. Turkcell Superonline is the leading datacenter and cloud services provider to over 2,600 corporations, including Turkiye’s largest corporations with whitespace of 39,500 sqm in Turkiye. Turkcell Superonline has total of 13 border crossings. The company has 5 border crossings to Europe, offering various diversity options to important European cities through protected and completely diverse routes. With its stable fiber infrastructure and 8 border crossings to the East, the company offers capacity services through Middle East, CIS and Asia. The company’s next generation network designed over this strong infrastructure enables it to deliver high quality solutions to telecom operators, multinational and national private corporations and governmental institutions. Turkcell Superonline won the tenders of BOTAS, Turkiye’s state-owned pipeline company, and TEIAS, Turkiye’s state-owned electric power transmission company, for the indefeasible right to use the capacity of the fiber optic cables already installed by BOTAS for 15 years in 2009 and TEIAS for 15 years in 2017, including the right to install additional fiber optic cables and to use the capacity of these fiber optic cables during the same period. These transactions are considered as finance leases as the lease term is for the major part of the remaining useful life of the fiber optic cables already installed by BOTAS, and Turkcell Superonline made a significant investment during the initial period of the lease agreement which is an indicator that the transaction is a finance lease. The company’s contract with BOTAS will expire in January 2025, and Turkcell Superonline is already working for an extension. The company’s two contracts with TEIAS will end in 2032 and 2034 and Turkcell Superonline plans to extend these contracts as these contracts are strategically important for its business. Additionally, in relation to the company’s 60 thousand km fiber network, BOTAS routes have a portion of about 16 thousand km (27)% and TEIAS routes have about 2,500 km (4.2)%. Turkcell Superonline offers its local and foreign clients wholesale voice termination, international leased data lines, internet access, datacenter and infrastructure services. It is also authorized to provide satellite communication services, infrastructure operating services, internet services and wired broadcasting services, as well as mobile virtual network operating services. The company carries the majority of Turkcell’s traffic. Turkcell Superonline pursues a domestic wholesale business strategy as well providing wholesale products, such as bit stream access via its FTTx fiber coverage, infrastructure services, backbone transmission, Ethernet, IP transit capacities, cyber security and VPN services to operators, service providers and datacenter companies in the Turkish market. Turkcell Superonline is leading the localization strategy for Turkiye’s data and internet traffic by developing partnerships with internet exchange platforms, Tier 1 operators, global/local content and cloud service providers to enable direct access to all networks, and also commercializing internet traffic. Turkcell Superonline is among the businesses within Turkcell Group that it may consider a strategic action for further value creation. Global Tower Global Tower was established as a wholly owned subsidiary of Turkcell and commenced its operations in 2007 to provide infrastructure management by leasing places on towers to private and public entities and institutions. Beltower has a right of use agreement signed with BeST. Global Tower operates a unique portfolio of 10,910 towers, 8,975 of which are located in Turkiye. As of December 31, 2022, Global Tower owned 985 towers in Ukraine and operates 835 towers in Belarus, as well as 115 towers in the Turkish Republic of Northern Cyprus with right of use, through agreements with the tower owners to sublease them to third parties through revenue share agreements. Global Tower also provides service over 162 mobile towers in Turkiye. Global Tower provides fast and high-quality service to its customers in collaboration with its business partners. In Turkiye, Global Tower manages the processes of renting, maintaining and installing towers in 18 structured regions with its 2 solution partnerships and 2 installation subcontractors. Global Tower helps customers expand their network, enables peer-to-peer telecommunications and provides broadcasting field infrastructure solutions, turnkey setup services and professional operation-maintenance services. Global Tower’s wide service range consists of shared infrastructure services in tower/rooftop/in house fields, TV-radio infrastructure solutions, E2E and wind power infrastructure solutions, M2M/scada/telemetry infrastructure solutions, GSM-R solutions, mini data center infrastructure solutions, mobile tower solutions, acclimatized system room solutions, energy infrastructure solutions, hybrid systems solutions (solar/wind), infrastructure maintenance and operation services, field acquisition and contract management services and satellite telecommunication solutions and services. Global Tower has obtained a satellite service license from the ICTA and initiated its satellite services where point-to-point or point to multipoint seamless and telco-grade data communication is needed. The company is already operating 2+2 HUB location services to provide closed satellite network solutions to its mobile network infrastructure and serving several corporate customers and public institutions data communication via its VSAT and SCPC satellite products. Turkcell Teknoloji Turkcell Teknoloji, a wholly-owned subsidiary of Turkcell, commenced operations in 2007 in the TUBITAK Marmara Research Center Technological Free Zone in Kocaeli, Turkiye. Through integrated intelligence and high-performance core capabilities, (data analytics and artificial intelligence, Network Technologies, IoT, VR/AR), Turkcell Teknoloji’s comprehensive portfolio addresses the following domains: mobile communication solutions, smart cloud platform and platform developed solutions, location based services and platforms, roaming solutions, geographic information systems, network management solutions, 5G and beyond infrastructure projects, customer relationship management and solutions, next generation value added services, music and entertainment services, IPTV services, mobile marketing solutions, mobile financial systems, campaign management systems, IoT, AR / VR, big data processing, business intelligence applications, smart SIM card solutions, healthcare services management, digital identity technologies, image video processing, text analysis, suggestion engines, voice analytics, robot assistants, robotics process automation, mobile analytical platform, artificial intelligence in health, learning and education applications solutions, e-mail and search engine solutions, digital broadcasting solutions, CDN (Content Delivery Network) Solutions, OTT and block chain solutions and AIOPS/devops. In line with Turkcell’s strategy of expanding digital services and ICT services in Turkiye and in international markets, Turkcell Technology aims to develop new digital and ICT services worldwide according to the latest technology and market requirements. Turkcell Teknoloji enhances company solutions with state-of-the-art artificial intelligence capabilities with their AI driven products. These products are in-house developed platforms aligned with their specific themes. Beyond the cloud-based computer vision services, face verification, facial analysis, OCR, object/motion detection studies are carried out to realize these solutions at the edge. In-house developed edge-AI products enable delivering AI capabilities of Turkcell Teknoloji to different industries, such as retail, manufacturing and health. As one of the company’s projects, development of image processing models for Togg smart devices is continued. Recently, Turkcell Teknoloji has launched an end-to-end self-service chatbot platform that lets individuals and businesses build and manage their own chatbot solutions. In addition, IOT analytics is one of the main focuses for Turkcell Teknoloji. Turkcell Teknoloji develops its own AutoML (Data Ocean) product with internal resources. The product learns from the past data and detects anomalies over the streaming data. This is expected to result in substantive improvement with regards to the field of predictive maintenance. In the fintech and insurtech sectors, Turkcell Teknoloji is committed to continuing to innovate and provide the best solutions with fully digital products and services. The company’s fintech solutions offer a variety of credit products to customers of Turkcell and its group companies with enhanced payment options. The company’s state-of-the-art technology allows it to provide fast and secure financial transactions, as well as personalized and convenient services to its customers. The company’s insurtech solutions, on the other hand, uses advanced analytics and data-driven approaches to develop innovative insurance products and services. The technology allows the company to quickly assess risk and offer customized insurance solutions to its clients, helping them protect what matters most to them. The company continues to expand its customer portfolio with many companies from different sectors in a short timeframe. To this end, Ultia, a cloud-based platform and application designed for companies to provide efficient corporate process management, was designed to continue this aim as an initiative of Turkcell Teknoloji. In February 2023, all types of intellectual property rights, including but not limited to, all software, domain names, brands and patents of Ultia, were transferred to Ultia Teknoloji Yazilim ve Uygulama Gelistirme Ticaret A.S., a technology-oriented company established under Turkcell New Technologies Venture Capital Investment Fund. Ultia makes all business processes manageable from a single platform and enables companies to perform information technologies and corporate service management successfully and efficiently. Ultia offers a unique lowcode platform to design all processes with the drag-and-drop method without the need for detailed code knowledge. The platform also provides a wide variety of ready-made modules, such as IT Service Management, human resources, asset management, help desk and can easily adapt to customers’ own business processes with personalization and integration options. As of December 2022, the company had over 30 customers on Ultia. DevOps team is responsible for integrating everyone associated with software development and deployment—business users, developers, test engineers, security engineers and system administrators. With the DevOps transformation, the company developed automation platforms that unified its people and processes, saved time, increased quality and security and finally, improved employee satisfaction. Turkcell Tekonoloji has been continuing its research and development activities on Blockchain. The company is working on how the capabilities offered by blockchain will create value in new products and services. Turkcell Teknoloji has 3,564 national and 216 international patent applications and 966 granted patents in total. Turkcell Teknoloji cooperates with a wide network of national and international R&D companies, universities and research centers and plays an active role in international R&D programs. As of 2022, Turkcell Teknoloji had almost 15 ongoing international collaborative R&D projects (in addition to the ones that are under evaluations) and it seeks to continue to increase the Horizon Europe and Eureka project applications and funded projects in the coming years. Turkcell Teknoloji’s R&D and innovation strategies are human oriented. Supporting the academic development of researchers is also a part of this strategy. In this context, PhD and Master programs, designed to improve the technical infrastructure of the company’s researchers in line with the technical fields required by its industry, have been continuing since 2014. Additionally, Turkcell Teknoloji has carried out important efforts to spread technology by publishing on national and international platforms. Turkcell Satis Turkcell Satis sells telecommunication and IT products through the company’s flagship store and provides a wide variety of products via its website www.turkcell.com.tr. In the last quarter of 2020, e-commerce business related to consumer electronics was rebranded under Pasaj and also started to serve as a marketplace platform for consumer electronic sales of third-party sellers. In 2016, Turkcell Satis started to sell equipment to other entities as corporate sales. In addition, since Turkcell Satis is experienced in the sector, it also acts as an intermediary between producer and distributors to support the determination of products, pricing, amount to be sold, sales support components and management of their inventory. Turkcell Dijital Is Servisleri A.S. Turkcell Satis ve Dijital Is Servisleri A.S.’s area of operations include system integration and managed services, new generation technologies, business applications and supplying required hardware to cover end-to-end IT and technology related solutions and services for enterprises. In March 2021, Turkcell Dijital Is Servisleri A.S. (often referred to as Turkcell Digital Business Services in the report) has been incorporated and registered through carve out from Turkcell Satis in order to monitor its performance more coherently. Turkcell Dijital Is Servisleri A.S. is a 100% subsidiary of Turktell as of August 2021, and enterprise business operations will be transferred to Turkcell Dijital Is Servisleri A.S. gradually. As Turkcell Digital Business Services being one of the companies that invest the most in technology, its main goal is to be a reliable technology partner that will provide tailor made end to end IT solutions for enterprise customers. It enables customers to move forward with the most appropriate financial model in their new technology investment plans and focus more on their own business. It particularly targets sectors, including health, education, manufacturing, retail, central and local authorities, logistics, finance, energy, tourism and SMEs. Turkcell Finansman Turkcell Finansman (referred to as Financell), a wholly-owned subsidiary of Turkcell, was established in 2015 with the approval of the BRSA and launched nationwide in 2016. It is the first finance company in the Turkish telecommunications sector to be focused primarily on meeting the financial needs of individuals and corporate customers, and provides financing solutions to existing or new Turkcell customers for their smart devices, tablet, accessory or other device purchases. As at the end of 2022, Financell is the leading company in terms of number of customers among all finance companies. In September 2017, Financell established a branch in the Turkish Republic of Northern Cyprus and started handset financing operations. Financell offers nsurance products directly or through Turkcell Sigorta insurance agency, depending on the product and related regulation. Key products are loan protection insurance to cover the payments against unexpected circumstances that may occur, such as unemployment, death, disease, accidents, and device protection insurance to cover damages on the smart device purchased. As an insurance agent, Financell and Turkcell Sigorta provide insurance through revenue sharing agreements with prominent partners, such as BNP Paribas Cardiff, Zurich and Turkiye Sigorta. In 2019, Financell included corporate entities to its existing individual customer portfolio which also aims to support Turkcell’s corporate business. In 2020, Financell started providing financing solutions also to Turkcell Superonline customers. In 2022, Financell started providing consumer loans via the Paycell platform for online and offline shoppers and also started providing auto loans. Turkcell Sigorta Turkcell Sigorta provides a wide variety of insurance products, including life, non-life (property insurance, electronic devices, errors and omissions, machinery breakdown, employers’ liability, political violence, third party liability, directors and officer’s liability) motor insurance to Turkcell Group and its employees. Turkcell Sigorta also provides insurance products to Turkcell customers via its agreements with leading insurance companies like Turkiye Sigorta, Zurich and BNP Paribas Cardiff, such as device protection, bill protection, personal accident insurance and, complementary health. In 2021, Turkcell Sigorta started to offer bill protection and personal accident products on Paycell application and compulsory earthquake and travel health insurance in 2022. Turkcell Dijital Sigorta Within the scope of Turkcell’s digital financial services strategy, Turkcell Dijital Sigorta is incorporated as a subsidiary of Financell in order to develop the existing insurance business within Turkcell to a full-fledged insurtech structure from the agency only – intermediary structure. Insurance License application was submitted to Turkish Insurance and Private Pension Regulation and Supervision Authority on October 2022. The company’s insurance license application is approved on Accident, Health, General Losses, General Liability, Financial Losses and Legal Protection branches as of February 2023. Turkcell Odeme Turkcell Odeme became operational presenting users with a convenient mobile payment solution and offering a streamlined experience under the Paycell brand. Paycell is a payment services platform providing digital payments and core financial solutions for both merchants and consumers. Turkcell Odeme owns a Payment Service Provider License from the BRSA to become the first mobile network operator subsidiary in Turkiye holding this license. With its brand Paycell, Turkcell Odeme has expanded its merchant network by implementing easy and secure payment methods, both online and in stores, in new areas, such as mobile app stores, restaurant chains, parking lots, transportation services, physical goods and airport fast track services. Paycell makes life easier for customers by offering direct carrier billing (Pay Later), money transfer, payment services and wallet, plus cash top-up for the Turkcell prepaid line and the public transportation card IstanbulKart, as well as the Paycell debit card. Paycell also provides merchants a QR based payment alternative and mobile POS solutions, as well as virtual POS solutions for online sales. The company has been increasing its financial marketplace with investment products and consumer loans, in line with the annual plan. Paycell users are able to buy, keep or sell precious metals or stocks (that are listed in NASDAQ and NYSE) using the app. On the credit side, the company made collaborations for both cash loan and consumer finance. Users can easily access cash loan via the company’s partner banks within the Paycell app. Finally, the company launched Paycell Shopping Limit, a consumer finance product that enables consumers to make their purchases in installments up to 36 months. Paycell and Financell have joined forces for these products. The company intends to extend its product portfolio by integration to the QR payment infrastructure, which will allow QR payments to be used nationwide, increasing the amount of digital partnerships that will in turn lead to an increase in the amount of digital content offered in the Paycell application. Paycell started providing international money transfer in European Union countries and U.K. starting from January 2023, in partnership with Paytop. Moreover, starting from last quarter of 2023, Paycell will start collaborating with Solaris, an embedded finance platform serving in Europe. As part of their collaboration, Paycell Europe and Solaris will work to broaden the scope and portfolio of digital finance solutions that they provide. In due time, Paycell Europe will continue to work towards obtaining license from Germany’s Bafin to provide the company’s own services apart from Solaris collaboration. In 2017, Paycell entered into a 5-year contract with Visa to issue prepaid cards and the contract was revised in 2021, to expire in 2026, with additional incentives. Furthermore, in November 2020, the company entered into a 6-year contract with Mastercard, valid through April 2021 to April 2027, to issue prepaid cards. The business has continued its growth through the addition of new features including peer to peer money transfer, expanded merchant integrations and the rising penetration of Paycell prepaid cards. In 2022, Paycell introduced new products for consumers, such as game tokens, and other digital content in the app marketplace, enhanced its money transfer options by granting 24/7 money transfer capability and implementing P2P and utility payment options to BiP. In addition, financial marketplace in Paycell app was enhanced with investment products, cash loans and consumer finance products through collaborations with other fintechs, banks and Financell. On the merchant front, Paycell introduced a commercial card for commercial payments and expanded on Android POS, virtual POS, Vitrin (an e-commerce solution), Payment Link products. As of December 31, 2022, Paycell reached to key account available 51.3 thousand merchants. Paycell took its first step toward globalization in 2017 by launching direct carrier billing services in the Turkish Republic of Northern Cyprus. In 2018, Paycell launched e-money and local currency transfer services in Ukraine, allowing Ukrainian customers to make digital payments. For Paycell, 2022 was a successful year in terms of growth and scaling-up. As of December 31, 2022, Paycell had 7.7 million three-month active users. The Paycell app has been downloaded 19.9 million times to date. The Paycell prepaid card reached 732 thousand three-month active users and total spending via all Paycell prepaid cards in 2022. Paycell mobile payments three-month active users reached 5 million and mobile payment transactions. Turkcell Enerji Turkcell Enerji, a 100%-owned subsidiary of Turkcell, was established with the vision of being a leader in the transformation of energy markets in Turkiye through digitalized, decentralized and decarbonized solutions. Turkcell Enerji owns an electricity supply license, issued by the Energy Market Regulatory Board (EMRA), on May 11, 2017, for a period of 20 years. This enables the company to trade electricity and/or electrical capacity. Turkcell Enerji supplies electricity to eligible residential, commercial and industrial customers in Turkiye. In 2020, Turkcell Enerji has completed solar rooftop projects for renewable power generation at selected Turkcell Group buildings and data centers. As of 2022, Turkcell Enerji carries out the project of commissioning solar power plants with a total capacity of 300 MW until the end of 2025 for self-consumption. The focus on renewable energy will continue with large-scale projects and investments. Lifecell Ventures Lifecell Ventures is a 100% subsidiary of Turkcell incorporated in the Netherlands. In line with Turkcell Group’s strategic priority of monetizing its digital services, Lifecell Ventures is responsible for delivering its digital services and solutions to the global markets and expanding Turkcell Group’s footprint by launching new offerings, accelerating the company’s owned OTT activities, growing current services and making strategic alliances with other operators. Lifecell Ventures uses technology to provide a digital experience to consumers worldwide and enable telecom operators to compete effectively by offering digital communications, entertainment, music, TV, transactional and e-commerce applications, as well as real time action-based marketing solution. Lifecell Ventures’ business model is based on charging for implementation, support, maintenance, revenue sharing and license fees for the provision of digital service technology and know-how to other operators with re-branding option. Lifecell Ventures has the ambition of contributing to taking telecoms to the next level, which is a more digital service focus, rather than being an infrastructure company. Lifecell Ventures launched the first international digital solution partnership with BiP and lifebox services at Moldcell, the Eastern European operator under a revenue sharing model. Since October 2020, the Caribbean company Digicel Group provided services from the communication platform BiP, and Fast Login in 32 countries, in partnership with Lifecell Ventures. Digicel is managing its own consumers’ data while offering its subscribers market-leading action in real time through LCV’s Real Time Action (RTA) Marketing and Real Time Trend Monitoring tools. In 2021, additional RTA licenses were sold to Digicel and an RTA agreement was made with BTL in Belize. In 2022, Digicel Group sold its affiliate company Digicel Pacific Limited which operates in six markets in the South Pacific including Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga and Nauru, to the Australian telecommunications company Telstra Corporation Limited. In this regard, a variation agreement to the Master Services Agreement shall be signed between Lifecell Ventures and Digicel Group, with separating the South Pacific operations being under discussion. Lifecell Ventures will continue to cooperate with Digicel Pacific Limited, an affiliate of Telstra Corporation Limited, in the South Pacific region. BiP Digital Communication Technologies B.V., a subsidiary of Lifecell Ventures, will be the contracting party to the cooperation agreement to be signed with Digicel Pacific Limited. In 2022, Lifecell Ventures signed a cooperation agreement with Beeline Georgia to launch the Lifebox personal cloud storage platform. Lifebox service will be contributing to Beeline Georgia’s digital ecosystem in the international market with the revenue share model in 2023. Within the scope of the digital solutions partnerships between Lifecell Ventures and Moldcell, Digicel, and BTL, Lifecell Ventures has been focused on conducting the existing digital services and solutions and contributing the new service needs of the markets. Atmosware Teknoloji Atmosware Teknoloji is fully owned by the company’s subsidiary Turktell. Atmosware Teknoloji will focus on developing software products and services, training software developers and aims to serve the company and its subsidiaries and third parties both in Turkiye and other countries. Equity Accounted Investments Turkiye’nin Otomobili Girisim Grubu Sanayi ve Ticaret A.S. (Togg) On November 2, 2017, Turkcell signed the Joint Initiative Group Cooperation protocol and on May 31, 2018, a Shareholders Agreement was signed by Turkcell with the intention of participating as a potential contributor in Turkiye’s Automobile Project. Sofra Kurumsal ve Odullendirme Hizmetleri A.S. (Sofra) Sofra in which Turkcell indirectly holds a 33.3% stake. Belbim Elektronik Para ve Odeme Hizmetleri A.S., a subsidiary of the Municipality of Istanbul, and Posta ve Telgraf Teskilati A.S., the Turkish postal services company, act as shareholders together with the company’s subsidiary Turkcell Odeme. Sofra offers meal cards issued under the PAYE Card brand, enables personnel of customers to conveniently purchase food at member merchants. PAYE Card is also accepted at public transportation payment in Istanbul. In 2022, PAYE Card has over 162 thousand cardholders with around 17.4 thousand merchants. PAYE Card also launched virtual card which enables consumers to pay with QR at stores. Regulation The company must meet various technical standards of the GSM Association as determined and updated by the European Telecommunications Standards Institute and Secretariat of the GSM Association. Moreover, the company must meet the standards that the Information and Communication Technologies Authority (ICTA) imposes under ‘Regulation on Quality of Service in the Electronic Communications Sector’. History Turkcell Iletisim Hizmetleri A.S. was founded in 1993. It was incorporated under the laws of the Republic of Turkey in 1993. The company commenced its operations in 1994.