Turkey - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

Turkey has a very competitive mobile telecommunications market, with increasing competition in the fixed-line and broadband sectors, plus a developed pay-TV market. This report introduces the key aspects of the market with statistics and analysis. Subjects covered include:

• Key statistics;
• Regulatory environment and structural reform;
• Turkey’s aligning of its regulations with those of the EU;
• Major players and the changes in ownership;
• Infrastructure including new fibre optic networks;
• Mobile voice and data markets;
• Broadband;
• Average Revenue per User (ARPU);
• The flourishing pay and FTA TV sector.

Researcher:- Tine Lewis
Current publication date:- July 2010 (9th Edition)
Next publication date:- July 2011

Executive Summary

Turkey’s telecommunications market was hard-hit by the Global Financial Crisis but the launch of 3G mobile services in mid-2009 and healthy growth in the broadband sector are more positive aspects.

Both fixed-line and mobile subscriber numbers fell during 2009. Fixed-line subscriber numbers have been falling for some years due to mobile substitution with penetration rates falling from 28% in 2004 to 23% in 2010.

Economic growth is forecast to return to healthy positive levels during 2010 and mobile subscriber numbers are also expected to resume growth. The market is very competitive, with both Turk Telekom subsidiary Avea and Vodafone Turkey gradually chipping at Turkcell’s dominant market position. All three operators have substantial foreign ownership share.

3G licences were awarded in 2008 and the three mobile operators launched services in mid-2009. Turkcell claimed five million 3G subscribers in February 2010 and estimated there were around two million active 3G users in Turkey at end-2009.

The telecoms market has been mostly liberalised with a number of alternative fixed-line operators, and a majority stake in incumbent fixed-line operator Turk Telekom privatised. The telecoms regulatory framework has been amended to conform to the EU’s regulatory framework for communications.

With a falling fixed-line voice market, Turk Telekom is concentrating its energies on the broadband Internet market, with some success. Turk Telekom dominates the wholesale broadband market due to the reach of its network. In addition, the retail share of its subsidiary TTnet is around 90%. It will need to work hard to retain its market dominance however, as mobile operator Turkcell is investing in considerable fibre infrastructure through its subsidiary Superonline. Vodafone Turkey also bought a major alternative operator in late 2009.

These factors have led to very healthy growth rates in broadband subscribers. Almost all Internet subscribers are now broadband subscribers.

Market highlights

• 3G mobile services were launched in mid-2009, with Turkcell claiming five million subscribers by mid-2010.
• Incumbent Turk Telekom is pinning its hopes on broadband as competition and mobile services eat into its fixed-line revenue. Broadband penetration rates remain low compared with average EU levels but growth rates are good.
• Mobile operators Vodafone Turkey and Turkcell have both made moves to challenge Turk Telekom in the broadband sector, with Turkcell investing in considerable fibre infrastructure.
• Turkey has a very healthy broadcasting sector, with terrestrial, cable and satellite channels, including substantial pay-TV. The analogue-digital switch-over is on track for 2014.

Estimated market penetration rates in Turkey’s telecoms sector – end 2010

(Source: BuddeComm based on industry data)

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

• 1. Key Statistics
  • 1.1 Country overview
• 2. Telecommunications Market
  • 2.1 Overview of Turkey’s telecom market
• 3. Regulatory Environment
  • 3.1 Background
    • 3.1.1 Electronic Communications Law 2008
  • 3.2 Regulatory authority
    • 3.2.1 Information and Communications Technologies Authority (ICTA)
  • 3.3 Telecom sector liberalisation in Turkey
  • 3.4 Privatisation
    • 3.4.1 The 2005 privatisation
    • 3.4.2 Privatisation background
  • 3.5 Interconnect
  • 3.6 Access
  • 3.7 Number portability
  • 3.8 Universal services
  • 3.9 Electronic Signature Act
• 4. Fixed Network Operators
  • 4.1 Overview
  • 4.2 Turk Telekom
  • 4.3 Turksat
  • 4.4 Superonline
  • 4.5 Borusan Telekom
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
  • 5.2 Next Generation Networks (NGNs)
  • 5.3 International infrastructure
    • 5.3.1 Submarine cable networks
    • 5.3.2 Terrestrial cable networks
    • 5.3.3 Satellite networks
• 6. Broadband Access Market
  • 6.1 Overview
    • 6.1.1 Internet and broadband statistics
  • 6.2 Asymmetrical Digital Subscriber Lines (ADSL)
  • 6.3 Cable modems
  • 6.4 Fibre-to-the-Home (FttH) networks
  • 6.5 Wireless broadband
    • 6.5.1 Mobile broadband
    • 6.5.2 WiFi
• 7. Digital Media / Digital Economy
  • 7.1 Overview
  • 7.2 Services
    • 7.2.1 E-government
    • 7.2.2 E-health
    • 7.2.3 E-education
  • 7.3 Digital broadcasting
    • 7.3.1 Overview of broadcasting market
    • 7.3.2 Turkish Radio and Television Corporation (TRT)
    • 7.3.3 Broadcasting regulation
    • 7.3.4 Digital TV
• 8. Mobile Communications
  • 8.1 Overview of Turkey’s mobile market
    • 8.1.1 Mobile statistics
  • 8.2 Regulatory issues
    • 8.2.1 Third Generation (3G) licences
    • 8.2.2 Third and fourth GSM licences
    • 8.2.3 Significant market power (SMP)
    • 8.2.4 Mobile Number Portability (MNP)
    • 8.2.5 Telsim privatisation
  • 8.3 Mobile technologies
    • 8.3.1 Analogue
    • 8.3.2 Digital
    • 8.3.3 3G
  • 8.4 Major mobile operators
    • 8.4.1 Turkcell
    • 8.4.2 Vodafone (Telsim)
    • 8.4.3 Avea
  • 8.5 Mobile voice services
    • 8.5.1 Prepaid
    • 8.5.2 Satellite mobile
  • 8.6 Mobile messaging
    • 8.6.1 SMS and MMS
  • 8.7 Mobile broadband (Access)
  • 8.8 Mobile content and applications
    • 8.8.1 Music downloads
    • 8.8.2 Mobile TV
    • 8.8.3 Mobile advertising
• 9. Forecasts
  • 9.1 Broadband subscriber forecasts – 2014; 2019
    • 9.1.1 Scenario 1 – higher broadband subscriber growth
    • 9.1.2 Scenario 2 – lower broadband subscriber growth
  • 9.2 Mobile subscriber forecasts – 2014; 2019
    • 9.2.1 Scenario 1 – higher mobile subscriber growth
    • 9.2.2 Scenario 2 – lower mobile subscriber growth
• 10. Glossary of Abbreviations

• Table 1 – Country statistics Turkey – 2010
• Table 2 – Telephone network statistics – March 2010
• Table 3 – Internet user statistics – 2009
• Table 4 – Broadband subscriber statistics – 2009
• Table 5 – Mobile statistics – March 2010
• Table 6 – National telecommunications authority
• Table 7 – GDP growth and inflation – 2005 - 2011
• Table 8 – Telecoms revenue and investment – 2004 - 2009
• Table 9 – Alternative fixed-line operators market share – 2007 - 2009
• Table 10 – Turk Telekom – Revenue, profit and EBITDA – 2007 - 2010
• Table 11 – Turk Telekom – Fixed-line revenue, EBITDA and PSTN ARPU – 2007 - 2010
• Table 12 – Fixed lines in service and teledensity – 1995 - 2011
• Table 13 – Internet user and penetration rate estimates – 1998 - 2011
• Table 14 – Internet subscribers and penetration rate – 2003 - 2009
• Table 15 – Broadband subscribers and penetration – 2001 - 2009
• Table 16 – Broadband subscribers by access technology – 2004 - 2009
• Table 17 – Broadband market shares – 2007 - 2009
• Table 18 – Turk Telekom ADSL ARPU and proportion of total fixed-line revenue – 2007 - 2010
• Table 19 – Electronic certificate and mobile electronic certificate ownership – 2005 - 2009
• Table 20 – Audience share by channel – 2006 - 2008
• Table 21 – Mobile subscribers and penetration rate – 1995 - 2011
• Table 22 – Mobile operators, subscribers and annual change – March 2010
• Table 23 – Mobile subscribers by operator – 2007 - 2010
• Table 24 – Mobile operators’ market share – 2007 – 2010
• Table 25 – Average mobile ARPU – 2003 - 2009
• Table 26 – Turkcell group financial data – 2005 - 2010
• Table 27 – Turkcell Turkey average monthly ARPU – pre and postpaid – 2001 - 2010
• Table 28 – Turkcell Turkey average monthly MOU and churn – 2001 - 2010
• Table 29 – Vodafone pre and postpaid ARPU – 2006 - 2009
• Table 30 – Avea revenue and EBITDA – 2007 - 2010
• Table 31 – Avea prepaid, postpaid and blended ARPU and blended MOU – 2007 - 2010
• Table 32 – Ratio of prepaid to postpaid subscribers – 2000 - 2009
• Table 33 – Turkcell prepaid subscribers – 2001 - 2010
• Table 34 – Vodafone prepaid subscribers – 2006 - 2009
• Table 35 – Avea prepaid subscribers – 2007 - 2010
• Table 36 – Numbers of SMS and MMS sent – 2004 - 2009
• Table 37 – Forecast broadband subscribers – higher market growth scenario – 2014; 2019
• Table 38 – Forecast broadband subscribers – lower market growth scenario – 2014; 2019
• Table 39 – Forecast mobile subscribers in Turkey – higher growth scenario – 2014; 2019
• Table 40 – Forecast mobile subscribers in Turkey – lower growth scenario – 2014; 2019