The stock market performance of Turkey's largest mobile phone operator (and arguably the best-known Turkish company to U.S. investors) Turkcell (TKC) has never been what anybody would call stable, but the last four years have been rough indeed. Although Turkcell looks promisingly cheap by many metrics, investors may not find as much value here as they hope.
Has The Bleeding Stopped?
The biggest problem for Turkcell has been competition; regulators in Turkey have wanted more competition in mobile phone services and have imposed mobile termination rate and interconnect fee cuts as a means of achieving that. Something similar has happened to America Movil (AMX) recently and Turkcell doesn't have the luxury of strong growth outside of Turkey to offset the damage. As if that weren't enough, rivals Vodafone (VOD) and Avea (mostly owned by Turk Telecom) have sought to build share by aggressive under-cutting Turkcell on pricing.
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Has The Tide Finally Turned For Turkcell?