June 01, 2010 10:00

“Acquisition of Invitel Will Make İstanbul Center of Telecom”

Published under About TT > Press Bulletin

Dr. Paul Doany, CEO of Türk Telekom, said that acquisition of Invitel by Türk Telekom against 197 million euro would increase the strategic importance of Turkey in worldwide telecom market.

Dr. Paul Doany, CEO of Türk Telekom, said that acquisition of Invitel by Türk Telekom against 197 million euro would increase the strategic importance of Turkey in worldwide telecom market.

Following the acquisition of Invitel International by Türk Telekom, the leading communications and convergence technologies company in Turkey, Dr. Paul Doany, the CEO of Türk Telekom, and Martin LEA, CEO of Invitel International, have spoken for the first time. Signing the deal related to the acquisition of 100 percent of shares of Invitel International which is amongst data and service providers serving with its 27 thousand km of optical fiber network in 16 countries in Middle and Southeast Europe against 221 million euro, Türk Telekom will pay 197 million euro for that acquisition.

While the deal has an importance in terms of Turkey’s becoming a voice and data bridge between Middle East and Europe, it is also a heavy step to Europe and global market for Türk Telekom. Having an importance position in terms of being a geographical “connection hub”, Türk Telekom will strengthen its relationship with its international data and broadband customers paying importance to “receiving end-to-end reliable services” through that deal.

Dr. Paul Doany, CEO of Türk Telekom, stated that it obtained a more qualified and reliable line to achieve the same targets overland through the acquisition of Invitel International, and said “And that will increase strategic importance of Turkey in worldwide telecom market,”. Doany added:

“The acquisition of Invitel International is a significant step to global market not only for Türk Telekom, but also for Turkish telecommunication market. Thus, we also perform our first international acquisition as a group. We have acquired successful technology companies such as Argela-Innova-Sebit and Sobee inland in line with the convergence target. By Invitel International, we will have a say in the region in field of data transmission in line with our strategy to make Türk Telekom telecom hub in the region.”

“We are becoming a global actor”

Dr. Paul Doany, CEO of Türk Telekom, continued his evaluations related to the acquisition of Invitel International as follows:

“Türk Telekom has started to get famous with worldwide exporting technologies that it has developed. Now Türk Telekom has also become an important power in the region as a global actor in the field of telecom infrastructure. This is a significant step not only for Türk Telekom, but also Turkish telecommunications market. Türk Telekom is becoming a voice and data bridge overland between Middle and Far East, and Europe by acquiring an international fiber optic body. Invitel International’s 27 thousand km of optical fiber network involving 16 countries offers a significant opportunity for Turkey to become the central country in the region in the field of telecommunications just like in field of pipelines, and for potential of İstanbul to be strengthened to be a potential hub for next generation (XaaS) regional services.”

“Telecommunications market will gain a new vision”

Doany expressed they were aiming to make best use of opportunities obtained through the acquisition and said “Turkey may become a base connecting the countries located in its east side and Europe”.

Doany emphasized that Invitel International would allow international wholesale data strategy of Türk Telekom to become more powerful, and Türk Telekom to save its expenses, and stated they would further improve their international service quality through end-to-end solutions. Dr. Paul Doany said:

“Through the acquisition Türk Telekom will become a unique geographical connection hub connecting the increasing data/broadband traffic in Middle and East Europe, and Turkey, Middle East and Asia markets to west Europe and USA. The deal will also provide a base for representatives of Turkish telecommunications sector to offer Turkish content and value added services to a larger region, and to obtain new cooperation opportunities being in further communication with telecommunication companies in west. Türk Telekom will strengthen its presence in Europe through new offices in 40 cities and this powerful position will be able to inspire new ideas for Türk Telekom and Turkey to achieve a leading position in the region. We hope that step would provide support broadband usage in Middle and East Europe, and in developing countries in Middle East and Asia. I believe that huge effort that will carry the leading role of Türk Telekom in convergence and communications technologies to the international area will provide a new vision to Turkish telecommunication sector.”

Doany stated that the acquisition would give a chance for creating a synergy between Türk Telekom and Invitel, and might strengthen Türk Telekom’s relationship with its international data and broadband customers for whom end-to-end services had a significant importance, and expressed:

“Thus, İstanbul will be able to improve its position as a potential regional connection hub for new generation regional services (XaaS). Many telecom companies in Far and Middle East mostly carry out their connections to Europe and America through submarine cables. However, problems are confronted since frequent breakage and cut-offs occur in undersea lines and tto repair them is difficult. Through the acquisition of Invitel, Türk Telekom Group has a more qualified and reliable line that will achieve the same targets overland. Therefore we will offer an alternative route that will pass over Turkey. And that will increase strategic importance of Turkey in worldwide telecom market.”

Martin Lea, CEO of Invitel Holding: “Türk Telekom will connect telecom giants in the region to each other”

Martin Lea, CEO of Invitel International, expressed that they believed Invitel International would make best use of growing potential within the body of Türk Telekom, and said:

“We believe that Invitel International which we have made a leading wholesale data and capacity service provider in Europe through our strategies will make best use of the growing potential of the company by being incorporated into Türk Telekom. With its 27 thousand km of fiber optic network, Invitel International will show its presence in the region from Middle East to Asia via Turkey within the body of Türk Telekom from now on as well as Middle and Southeast Europe.”

Martin Lea provided the below information related to their choice of Türk Telekom:

“There were many companies interested in that issue. The reason for our choice of Türk Telekom was that that reliable, big and professionally-managed company had vision that would provide continuity for company’s growth and sources that would allow required investments. In addition, we felt that there was an extremely strategic decision under this acquisition carried out by Türk Telekom. Türk Telekom has a vision to provide growth out of Turkey as well and that deal provides a significant contribution to the said target. The geographical position of Türk Telekom positions it as the first underground fiber network operator making wholesale between Middle East and Europe. Just like Turkey’s always being the cultural bridge between Europe and Asia, now Türk Telekom will take the role of critical underground fiber optic service provider connecting operators between Middle East, Europe and North America to each other. It will be the supplier for many telecom operators in those regions and connect them to each other.”

Invitel International acts in 16 countries including Austria, Bulgaria, Czech Republic, Germany, Italy, Romania, Slovakia, Ukraine, Serbia, and Turkey. The company provides services to customers including world’s leading telecommunications establishments, Internet service providers, and cable TV servers and companies from EU countries and USA. Having 121,1 million euro revenue and 41,6 million euro EBITDA as of the end of 2009, Invitel International continues its activities in Middle and East Europe. About 80 percent of fiber lines belongs either belongs to Invitel International or long-term Indefeasible Right of Use (IRU) agreements.

For completion of the acquisition, it requires to be approved by the General Board of Türk Telekom, and applications to regulator organizations to be completed.