Vodafone is to invest TRL1.3 billion (US$754 million) in its Turkish business this year in an attempt to revive the faltering operator, reports Reuters. Vodafone Turkey chief executive Serpil Timuray told state-run news agency Anatolian that the cash injection would focus on growth, customer satisfaction and driving sales, and would include the recruitment of a further 500 staff. The operator had a poor last quarter of 2008, which saw its revenues fall 14.5 percent and customers lost to rival players, Turkcell and Turk Telekom’s Avea. According to the report, the introduction of number portability in the country at the end of last year has also sparked a price war among the operators. Vodafone bought its Turkish business – previously known as Telsim – for US$4.6 billion in 2005, but it was among the UK-based group’s worst performing businesses last quarter.

Turk Telekom, controlled by Dubai-based Oger Telecom, said last month that its Avea brand will soon overtake Vodafone Turkey in terms of revenues. “We think Avea will be the number two by revenues this year, even in six months,” CEO Paul Doany told the Financial Times. According to Wireless Intelligence, Turkey had a mobile penetration rate of 87 percent by the end of 2008 and was dominated by market-leader Turkcell (36.9 million connections and a 56 percent market share). Vodafone Turkey had 16.7 million connections (25 percent market share) whilst Avea had 12.8 million connections (19 percent market share). Last November, all three operators snapped up 3G licenses and are expected to launch services this summer.