Kamil Kalyon: As we mentioned in our presentation, we had elective investments in the fiber side last three months period and we are at the stage of monetization of these fiber investments in this year. Most probably, this strategy would continue for the next year, especially for 2024. We will make some investments where we need. Regarding the comment to inflation pricing delivering growth, yes, this year, we have a lot of inflationary effects in our sector and in our economy. Therefore, this is a tradition for Turkcell’s team. We are doing this inflation pricing very well, more than decades. Therefore, we will continue this inflationary pricing in 2024 also.
Operator: The next question is from the line of Nagy Nora with Erste Group Bank AG.
Nagy Nora: Can you please update us on 5G spectrum allocation in Turkey, what’s the update and what’s your expectations?
Ali Taha Koc: Well, there is no official timeline for 5G announced by the regulator yet, but the minister of the transportation has announced that 2024 will be a planning for year for the 5G technology. Accordingly, we will be continuing our preparations during 2024. 5G is a vital technology that will facilitate digitization of industries and contribute to the economic development of our country. However, we believe that there are some issues that need to be addressed first for a healthy launch such as the fiber connection of our base stations, 5G capable smartphone penetration and development of locally manufactured equipment. As of 26 July, 2022, we’ve officially launched commercial 5G in Istanbul Airport with a special regulatory permission that is issued to all operators.
Turkcell customers and international roamers with 5G supported phones and 5G subscription can use 5G in Istanbul Airport. We will position Istanbul Airport as a commercial 5G pilot cluster and use it as a base for us to use care creation and R&D on top of our test 5G sites. As to the license cost and rollout of CapEx, it is difficult to give you an estimate as there is no official tender announcement. Analyzing the 5G development in different countries, we see that the high license cost lead to a slower 5G rollout and lower network quality. Additionally, the use cases, especially of 5G, particularly for the consumer segment are not yet clear. 5G will offer value for the digitization of the industry initially. We believe that this will limit operators the ability to generate incremental revenues at first.
Therefore, it is of utmost importance that licenses are granted to operators with reasonable fees and conditions. We also believe that deployment should be gradual based on customer demand to prevent excessive cash outflows without any return potential.
Operator: Next question is from the line of Ignebekçili Murat with HSBC.
Murat Ignebekçili: I would like to wish the top management success for their new post. I hope this for you. I would like to ask you a more general question maybe about the strategy. Now what are the key path of this system that you think needs improvement at first glance? And when we look at 2024 and ’25, what are the key points where there is potential for improvement in performance that will also reflect in the financial performance over the next couple of years? This is a more broader question maybe but I just want to hear about your thoughts on this.
Kamil Kalyon: I’m committed to advancing Turkcell’s leading position in our nation’s digital sovereignty, while sustaining and bolstering the company’s position in the telecommunication market. I am planning to emphasize innovation and technological development to unlock the full potential that lies within the Turkcell while creating, of course, value for our shareholders. There are several trends in the telecommunication industry that we care of that have the potential to significantly affect the future of our sector, such as especially artificial intelligence, cybersecurity and digitalization. At Turkcell, we will direct our efforts towards these phones by utilizing our company’s state-of-the-art infrastructure and know how and human capital.
