Turkey Telecom Sector
Turkish electronic communication market grew 12% year on year to TL 11.6 bn in Q3’16.
Total broadband subscribers reached to 59.2 million at the end of the third quarter of 2016. Fixed broadband services were widely provided by Türk Telekom with the leadership of its infrastructure investments since 2005, and accordingly, the number of fixed broadband subscribers increased 10.2 million in Turkey. xDSL is the main fixed broadband technology in the country with 7.5 million subscribers as of Q3’16. Additionally, the number of fiber subscribers was 1.8 million subscribers and there were also 688 thousand cable subscribers at the end of Q3’16. Compared to OECD average of 29% fixed broadband population penetration rate, Turkey has an important growth potential with its 12.9% penetration rate.
Investments for fiber optic infrastructure have increased in the country in recent years. Turk Telekom with its 223 thousand kilometer fiber network has the widest fiber infrastructure in Turkey. Alternative operators’ fiber length was 61 thousand at the end of Q3’16.
On the mobile broadband side, the total number of users was around 49 million corresponding to 62.2% population penetration rate at the end of Q3’16. Mobile broadband users via mobile phones reached to 47.7 million while mobile broadband users via non-phone mobile devices were 1.3 million. Compared to OECD average of 90.3% mobile broadband penetration rate, Turkey has an important growth potential in terms of mobile broadband penetration.
The total number of mobile phone subscribers in Turkey was 74.5 million corresponding to 94.6% penetration rate at the end of Q3’16. Share of postpaid subscribers in the market was 50.8% in Turkey whereas it is around 64% in Europe.
On 26 August 2015, the Auction for IMT Services and Infrastructures Authorization was held by ICTA. Excluding VAT, total auction fee for 365.4 MHz of spectrum across 18 packages in 5 separate frequency bands (800, 900, 1800, 2100 ve 2600 MHz) was EUR 3,356 mn. Following the auction, the current frequency allocated to mobile operators increased from 184 MHz to 549 MHz. Authorization will be valid until 30 April 2029 and operators launched IMT services as of 1 April 2016..At the end of Q3’16, number of LTE subscribers in Turkey reached to 45.7 million.
There were 11.1 million fixed voice subscribers corresponding to 14.1% penetration rate in Turkey at the end of Q3’16. Given the average household size of 3.60 in Turkey, a significant portion of the population uses fixed voice services.