Ismet Yazici, in an interview for LDaily, shares how the war in Ukraine has impacted lifecell’s operations and infrastructure. He notes the loss of facilities due to constant russian attacks, significant material losses, and challenges related to the sale of the company. At the same time, he expresses pride in lifecell’s ability to continue serving the country during difficult times despite temporary power outages and emphasizes the company’s commitment to its obligations to Ukraine and its people.
LDaily: Please tell us a little about your background and how did you enter the industry you’re currently in?
I.Yazici: I am an electronics engineer by education. This was my first degree, and while I was a student, I dreamed of working for a particular company. I was happy to realize that dream when I started working at Nortel Networks in Turkey. I began as an R&D test engineer, which laid the foundation for my career. Testing provided me with the immense benefit of being able to examine things from all angles, including root cause analysis.
This role was truly the cornerstone of my career. I started in the telecom industry and have remained in it ever since. My career began in research and development, then transitioned to the international sales department, followed by roles in business development and product marketing. Fifteen years ago, I joined the GSM industry, and I have since worked in every part of it, from infrastructure to ICT, marketing, and sales.
In parallel, I pursued additional degrees to bolster my career. I earned a master’s degree in political science and an MBA from the University of Texas, United States. Subsequently, I graduated from the Faculty of Law and became a licensed lawyer. Each educational achievement has significantly contributed to my professional responsibilities, adding substantial value.
I have gained extensive global experience, working in CIS countries such as Kazakhstan, Azerbaijan, russia, Belarus, as well as Ukraine, Romania, the United States, and Canada. It has been an interesting journey that continues to evolve.
LDaily: You mentioned the extensive education you received. Was the telecom industry always your goal, or did it happen naturally?
I.Yazici: No, the telecom industry was always my goal. As I mentioned, Nortel Turkey was my dream company. At that time, only a few companies in Turkey were engaged in research and development, and I aspired to work for an international and multinational company. It was a deliberate choice, and I was fortunate to realize my plans. It was not a coincidence.
LDaily: You announced that you plan to leave the company after its sale. Have you adhered to that decision, or have you changed your plan since then? Are you ready to announce a date when you plan to leave?
I.Yazici: Actually, I have been planning to leave for the last six months. This deal is taking longer than expected. I still don’t know the exact date of the deal’s closing. No, I have not changed my plans. Once I make my plans, they are unchangeable because they are based on certain considerations and factors. I am still waiting for the deal to close, which means the anti-monopoly committee of Ukraine needs to approve it. After that, I will be able to hand over the company to the new owners. Then, I will be done with lifecell as a company. However, my ties and bond with the people of lifecell, whom I always call the best team ever, will continue for a lifetime. Professionally, though, I will no longer have any connection to lifecell.
LDaily: What are you looking forward to after the closing of this deal? Are you anticipating a new position?
I.Yazici: That part of the story has already been decided and concluded. I am just waiting to leave the company and hand over my responsibilities to the new owner. After that, I know what to do and where to be. The only question now is when, which is up to the anti-monopoly committee of Ukraine. I am surprised that this is still pending. I thought the more critical part was the court case for lifting the seizures or sanctions on our shares. That process was surprisingly fast. Now, we have been waiting for two months for the anti-monopoly committee. The ball is in their court. Whenever they approve the deal, it will be finalized.
LDaily: Talking a little bit about connections, what is the connection between lifecell and Friedman?
I.Yazici: Actually, I’m sure you also know the situation very well. That person, Friedman, has nothing in lifecell directly. However, he has shares in the ownership structure through two layers. Directly, there is no influence on lifecell. I have never seen him, never received any direction from him, nor have I ever considered how my actions or lifecell’s actions would impact that shareholder specifically. He never had any decision-making power on the Turkcell board either. In our board of directors, we always had people from Turkcell, and previously from Telia Sonera. One notable gentleman was Erik Belfrage, God bless his soul. Other than him, I don’t recall anyone from Friedman’s company sitting on LifeCell’s board. So, there is no connection at all. Indirectly, it is assumed that he has shares, but due to shareholder rights in Turkey, he is one of the ultimate beneficiaries of the company’s results, but not directly.
LDaily: Talking a little bit about lifecell, it would be interesting to know what is approximately the total amount of investments that lifecell has made in the Ukrainian market?
I.Yazici: From the very beginning, we are looking at around $3 billion total spend by lifecell. The majority of this, of course, is infrastructure investment in base stations, ICT equipment, network equipment, etc. Part of it is financing costs used to fund operations. This company couldn’t generate any net profit for many years, and only four years ago did we manage to make the company profitable. Since then, we have been increasing profits. So, roughly speaking, it’s about $3 billion in total investments over the years.
LDaily: Did the war in Ukraine impact the profitability in recent years or any of these investments?
I.Yazici: Unfortunately, yes. We lost some sites that were attacked by russian missiles and bombings. In quite a few cases, our sites were in the middle of the front lines because we always try to provide the best service to our military. Under heavy shelling or confrontation with the enemy, we strive to keep the sites up and running. Being in such areas means our sites are at risk of being hit. We lost more than 150 sites, and around 600 sites are currently out of usage and control. The number I mentioned were directly hit by bombings, etc. Additionally, around 600 sites are in temporarily occupied areas, under the control of the enemy.
We have suffered a lot of material losses in the field. However, we are proud that even during the worst days of the war, we never stopped providing our services to the country and the people of Ukraine, both within and outside of Ukraine. Except for some critical power outage-related issues, we never stopped serving anyone during the war, and we continue to do so.
LDaily: Has the number of subscribers changed since the beginning of the war?
I.Yazici: Yes, in 2022, we lost around 8% of our subscriber base because many people had to leave their hometowns and around 7 to 8 million people fled the country. During that time, we lost about 7% to 8% of our subscriber base. However, thanks to our dedication and commitment to serving the country, we have been increasing our subscriber base ever since. It’s really gratifying to see that our efforts have been appreciated by Ukrainians. By the end of 2023, we managed to increase our subscriber base by around 12%, and in 2024, we continue to see growth.
LDaily: Would you say that the difficulties you’ve just mentioned played a part in the sale of the company itself?
I.Yazici: The difficulties you mentioned did play a part, but not as significantly as one might think. At the beginning of the war, I understand it was a considerable risk for Turkish investors, having an asset in a war zone. However, after two years, we all realized that Ukraine is determined to fight for its freedom, and victory will be ours. Nothing will happen to companies operating in the country.
Initially, there were attempts to acquire lifecell based on its increasing performance. When the war started, the buyer paused this initiative. They waited almost a year to see what would happen. When they realized the company continued growing even under war conditions, their interest revived, and they restarted negotiations. Turkcell is making a realistic decision to sell. Let’s hope the deal will close soon.
LDaily: Recently, the Verhovna Rada passed a bill on a single roaming zone with the European Union. What do you think would change for lifecell and the services you provide after this law is passed?
I.Yazici: That decision is not going to change anything. Why? Because since the beginning of the war, thanks to our partners, especially European countries, about 30 countries have been supporting us significantly, and we have been providing services to Ukrainians living in Europe without extra charges. They have been using their data as if they were in Ukraine, without any additional roaming charges. So Ukrainians have already been enjoying these services.
However, this initiative by the regulatory body and the parliament overlooks a critical aspect. We have lost many operators and numerous sites. The costs are enormous. Due to electricity power outages, we have been investing in generators and lithium batteries, which have increased our costs. The interconnection money from international operators helps balance these expenses for all operators. The regulatory body’s attempt to cut our international revenues adds an additional burden on us.
For subscribers, they have been using these services free of charge anyway. But especially during wartime, the regulatory body should consider the challenges faced by all operators because investments never stop. You see the situation here, right? Electricity is a significant problem, and it might be even worse in winter. We continuously invest in these areas. The agreement with the EU roaming zone sounds great, but I would expect more support from European operators in continuing to pay us the international interconnection fees. Unfortunately, it is not going to be the case, and they are not going to be paying us that money. We are going to be facing some additional financial challenges.
LDaily: What would you say is the strategy of lifecell in the upcoming years in terms of investments and projects?
I.Yazici: I think this question should be asked to the new buyers. So I’m not in a position to comment on that. I can only mention my wish. This company has faced huge challenges, and making it profitable was not easy because the regulatory environment has never favored the third operator. The regulatory body has tried to implement positive changes, but always with delays.
For instance, look at mobile number portability and mobile termination rates (MTR). The same regulatory body pressures us to make interconnection rates zero for all European operators, but it wouldn’t address local mobile termination rates. This is illogical. On one side, I am asked to make zero interconnection rates with rich European operators, but locally, I have to pay Kyivstar and Vodafone. There is no logic in this.
Interconnection rates have been dropping, but it takes too long. The regulatory environment was never favorable for third operators. Typically, third operators are crucial for boosting competition in any telecom market. We have been operating with our hands tied. My wish is that the newcomers will fight for the freedom of mobile subscribers’ rights, ensure equal treatment for all operators, and increase competition. They will also need to keep investing. I have read that they are planning significant investments. Hopefully, lifecell will continue to invest in the network and provide even better services to customers.
LDaily: You have mentioned that you managed to increase and improve certain numbers during the war. Which strategy specifically did you use to improve them?
I.Yazici: When the war started, we put all business strategies aside. Our motto was to keep serving the people because telecommunication services, especially mobile telecommunications, can save lives. Communication became a critical need alongside shelter and food. From day one, we decided to focus on the country and its people, not business.
We initiated national roaming, ensuring that anyone needing communication, whether our customer or not, would be served. We supported the army and people who couldn’t add money to their accounts by lifting all money-related rules. The company transformed into one focused on serving the Ukrainian people. Serving the people has been at the heart of our strategy since February 24, 2022.
Lastly, we want to see this war end. I am excited about Ukraine after the victory. The people of Ukraine have been rewriting world history with their resistance and commitment. I am deeply sorry for all who lost their lives or suffered injuries. Nothing can bring them back, and nothing can make us forget their immense commitment and service to the country. I hope this sacrifice is well understood and appreciated by the current and future generations of Ukrainians. We’ll see what the future holds.
