Serpil Timuray
CEO of Vodafone Türkiye

Interview for Teletimes
by Cem Kivircik from Istanbul

Q – You have been the CEO of Vodafone Türkiye for more than a year. In the meantime, what kind of innovations and developments were experienced in Vodafone Türkiye? How was the process? Did you encounter any interesting events that you want to share with us? How did you close the year in terms numerically?
A – We continue our long-term strategic program that we created in 2009-10 financial year with the same determination and focus in 2010-11 financial year. The vision of our strategic program is to be “Communications Company that satisfies the customers most”. As the world’s largest mobile communications company, we implement a “customer-focused program” to transform all facilities of the most advanced communication technologies to the solutions that meet the needs of our users and create value for them.
In the context of this program, we create a difference in customer experience, thanks to our segmentation strategy focused on creating value to our customer, our technological investment focused on innovation and quality, and perfectionist service-oriented sales-distribution network. In this quarter, a huge increase in our service revenues and the number of postpaid subscribers is the result of the difference created in the customer experience and the strong growth in customer satisfaction.
In a short time, we managed to offer the technological infrastructure in the quality of international Vodafone and with a huge increase in scope. We reached to 11.500 base stations and 99.3% population coverage in EDGE by expanding our 2G network three times in three years. In 3G + services, we focused on global quality, advanced technological infrastructure, consumer promise, “creating a difference in customer satisfaction”.
After launching our 3G + services that we created by using the most advanced HSPA + technology in 81 provinces simultaneously in July 2009, we are continuing our investments. Owe launched our 3G network with the most advanced HSPA + technology in 81 provinces simultaneously and with 60% population coverage. We increase our coverage rate to the level of 70%. In the first quarter of our financial year, 34% of our subscribers began to use 3G. With this subscription rate, Vodafone became “Türkiye’s most preferred operator by its subscribers”.
Innovation is also an important issue for us. It is a field in which Vodafone is pioneering all over the world and our brand is among the world’s most innovative brands. In our3G + services, we show our differences with our unique services and our studies in the field of innovation continue increasingly.
With the concept of “Vodafone Mobile Center” we increase the number of restructured stores from 770 to 974. Last year, we announced a new “strategy for mobile devices”. We shared our experiences as Vodafone Group, the world’s number one mobile device receiver, with our subscribers in the first year of 3G. It is our corporate responsibility, as Vodafone, to provide the greatest blessings of this age to our consumers in all income groups in Turkey in line with their expectations and budgets. Our mission is “to provide mobile internet and 3G to everyone” and for that, we presented the most appropriate devices for each budget by considering fair pricing and the balance between cost and value to provide mobile internet to everyone. In the first year of 3G, we offered the first operator-branded 3G telephone Vodafone 840 with superior capabilities in the fields of internet and multimedia where mobile communications show the most rapid progress. It costs only 1 TL per month. (26 millions units were sold in the world.) We show our determination clearly in this way. As an expression of the satisfaction that interest and confidence of our customers created in Vodafone Group, many innovations are offered to Türkiye one by one. We have shown our belief in Türkiye and 3G technology.

When we look at the point we came today, our customer recommendation score continues to increase from February 2010 to June 2010 and we have the highest recommendation scores among three operators. Customer recommendation score is a very important success factor for us, and the most important determinant criteria in Vodafone’s market share. In other words, Vodafone Türkiye is the most recommended operator in the market.
Second, by means of the power we receive from global leadership and knowledge, we continue to be “the number one operator in number portability” in the last financial year by transforming the advanced mobile communication technologies to the services that respond to the needs of users and offering these services to our subscribers at reasonable costs. In number portability, the numbers that moved to Vodafone has reached to 1.9 millions since April 2009. We increase the number of our subscribers to 16.1 millions by continuing our performance that was increased in the first quarter of 2010-11 financial year.
In this quarter, our service revenues reached to the record level by increasing 23.7% when it is compared to the previous year’s same quarter. With another record in the preferences of postpaid subscribers, the number of our postpaid subscribers reached to 3.1 millions by increasing 1 million when it is compared to the previous year. Vodafone, focused on increasing the number of “active subscriber” increased APRU, the revenue of Vodafone per customer, 17.4 percent when it is compared to the previous year’s same quarter.

Q – Vodafone is competing with two operators in Türkiye. From the perspective of marketing strategy, how do you position yourself in the market? What are your differences in comparison to other two operators?
A - The difference that comes from our global power and experience is being felt in Turkish market. We experienced its first example in 3G. You know, Türkiye was the 17th country that Vodafone Group offered 3G. We transferred a great experience and knowledge. We have witnessed that our subscribers also notice that and express their appreciation. In one year, which is relatively a short period, 34 percent of our subscribers began to use 3G.
At the point where the internet access and data usage are provided in mobile environment, we envisage an important growth opportunity through 3G. Thanks to a proper pricing, we think that we can grow in the field of mobile data. Mobile internet and mobile data are the basis of our 3G strategy.
Making the internet access popular, which is one of the most important priority to reach the advanced level of welfare with a more rapid development, is a part of our corporate responsibility.
For this reason, we as Vodafone Türkiye implement a visionary 3G program after one year from the 3G launch. In order to democratize the internet, our mission is “Mobile Internet For Everyone” to offer the benefits of internet to everyone anytime and anywhere, and we aim to be an institution that brings the greatest contribution to decrease the digital gap in our country and provide equality of opportunity in every part of our country. We attach importance to three important elements: “broadcast and coverage of high quality”, “reasonable pricing” and “smart mobile phones”.

Q – Your project for farmers was very interesting. At which point this project has reached since its launch? Could you explain it by giving figures?
A - As of today, there are over four millions households that earn a living from agriculture and three millions agricultural enterprises of various sizes. For this large and productive segment of our society, we offered “Vodafone Farmer Package” as a special service package, together with our Ministry, as a first and a pioneer. In this package, there are telecommunications-related services, as well as some services to ease the lives of our farmers, activities and sponsorships that contribute the training and development of our farmers. In other words, we’re talking about not only a special tariff offered to farmers, but also a corporate social responsibility project that respond to the needs of them. I can say that our tariffs in both postpaid and prepaid services are very special, very economical, and even unique. Today, we are serving more than 100.000 farmers in total. We are very pleased with the interest of our farmers and our efforts are continuing intensely.

Q – Speed competition in 3G is an issue that is discussed frequently. What kind of differences is happened in data traffic of Vodafone subscribers after 3G?
A - We as Vodafone Group are working with the mission of enriching the lives of our customers by making the communication available at any time from any place they want in our increasingly interconnected world. We offer our experience and leadership to 346 millions subscribers in 71 countries at five continents, in 31 of them with our own brand and in 40 of them through the network partnerships.
We offer 3G services again at five continents, 17 countries including Türkiye. By means of the experience of our leadership in the world, we transferred a great experience in this field to Türkiye.
After the start of 3G services in 2009, we offer HSPA + to Türkiye, which is the most advanced 3G technology in Europe. We launched the most advanced 3G technology in terms of both speed and quality and also compliance with the advanced technologies in 81 provinces simultaneously. Thanks to HSPA + which is the most advanced 3G technology, it is possible to provide the internet services 20 times faster than the average. We used our international experience and knowledge to establish our infrastructure in Türkiye. In this way, we offered a service of high quality to our subscribers with Vodafone 3G+, our innovations and experiences. We see from the results that our subscribers feel this difference.

Approximately every 1 of 3 subscribers began to use 3G. Monthly data usage in our network increased 28 times since the launch of 3G and 84 percent of data usage is done via our 3G network. We thank to our customers because of their interest and trust in our services; they make Vodafone the most preferred operator in 3G. Since the launch of 3G, we have said the same thing. Customer experience is very important in 3G. At the point we have reached today, our subscribers can experience this difference.

Q – Vodafone makes also the device campaigns. For the next period, what kind of devices you will offer in the device campaigns?
A - I prefer to keep them as a surprise for now. I can tell that we as Vodafone continue to share our difference in this field with our customers.

Q – What do you think about the telecommunications sector in our country and the world? What kind of things should be done or should not be done in the sector? What is needed for an ideal competitive environment?
A - When the market shares in GSM sector are examined in multinational level, an imbalance is seen in terms of market shares and especially profitability. Only one operator receives 95 percent of the total profit share among three operators in GSM sector. In order to create a sustainable competitive environment, the profit distribution in the sector has to be balanced.
Initial taxes are one of the barriers in terms of competition. Tax system should be changed. GSM subscribers pay 56 TL as an initial tax. The abolition of this tax will make important contribution in terms of competition. There is no initial tax in Europe. Initial taxes constitute a barrier for the customers who want to move from one operator to the other. Sometimes this tax is subsidized by the operators. Initial taxes constitute an obstacle for operators trying to grow and make the problem of unbalanced distribution of profits even deeper. Today, our investment reached to 10 billions TL and we are continuing to invest. We expect solutions for these issues that constitute an obstacle for operators trying to grow.