Turkey - Telecoms, Mobile, Broadband and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in Turkey’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:

• Market and industry analyses, trends and developments;
• Facts, figures and statistics;
• Industry and regulatory issues;
• Infrastructure;
• Major players, revenues, subscribers, ARPU
• Internet, IPTV;
• Mobile voice and data markets;
• Broadband (FttH, DSL, cable TV, wireless);
• Convergence and digital media;
• Mobile subscriber forecasts to 2020;
• Broadband subscriber forecasts to 2020.

Companies covered in this report include:

Turk Telekom, Turksat, Superonline, Markafoni, Trendyol, Dsmart, DigiTurk, Turkcell, Vodafone, Avea.

Researcher:- Paul Kwon
Current publication date:- December 2012 (11th Edition)

Executive Summary

Mobile broadband emerges as Turkey’s most popular broadband platform

Turkey’s telecommunications market continues to grow despite recent economic uncertainty, driven by demographic and market forces, boasting a relatively young population and a developing economy shaped by the EU accession process.

Regulatory reform implemented as part of the European Union (EU) accession program continues to develop the market and improve competition. Wholesale Line Rental introduced in January 2012 while naked ADSL has managed to account for 1 in 11 ADSL subscriptions in less than two years.

Turkey’s broadband market enters 2013 with mobile broadband as the most popular broadband platform, overtaking ADSL. The fixed broadband market is evolving, with ongoing Fibre-to-the-Home (FttH) deployments receiving a boost through a regulatory holiday introduced by the regulator.

Recognising the potential of applying ICT to improve both social and economic development, Turkey has taken steps to develop a digital economy, encompassing e-commerce, e-government, e-health and e-education. The large potential online market has attracted international significant investment from multinational retailers and private equity firms.

Mobile penetration in Turkey has reached levels indicative of maturity although take up of mobile broadband services highlights future revenue growth opportunities. Turkey has also emerged as a noticeable front runner in the nascent mobile payments sector, supported by the country’s relatively young population and high credit card penetration.

Key telecom parameters – 2010; 2012

(Source: BuddeComm)

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
• 4. Fixed Network Operators
  • 4.1 Overview
  • 4.2 Turk Telekom
  • 4.3 Turksat
  • 4.4 Superonline
• 5. Telecommunications Infrastructure
  • 5.1 National telecom network
  • 5.2 International infrastructure
    • 5.2.1 Submarine cable networks
    • 5.2.2 Terrestrial cable networks
    • 5.2.3 Satellite networks
• 6. Broadband Market
  • 6.1 Overview
  • 6.2 Internet and broadband statistics
  • 6.3 Asymmetrical Digital Subscriber Lines (ADSL)
  • 6.4 Cable modems
  • 6.5 Fibre-to-the-Home (FttH) networks
    • 6.5.1 Superonline
• 7. Digital Media / Digital Economy
  • 7.1 Digital Economy Overview
    • 7.1.1 Services
  • 7.2 Digital broadcasting
    • 7.2.1 Overview of broadcasting market
    • 7.2.2 Broadcasting regulation
    • 7.2.3 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
  • 8.6 Mobile data
    • 8.6.1 Short Message Service (SMS) and Multimedia Messaging Service (MMS)
    • 8.6.2 Mobile broadband (Access)
  • 8.7 Mobile content and applications
    • 8.7.1 Mobile TV
    • 8.7.2 Mobile advertising
    • 8.7.3 Mobile payments
• 9. Forecasts
  • 9.1 Broadband subscriber forecasts
    • 9.1.1 Scenario 1 – higher broadband subscriber growth
    • 9.1.2 Scenario 2 – lower broadband subscriber growth
  • 9.2 Mobile subscriber forecasts
    • 9.2.1 Scenario 1 – higher growth
    • 9.2.2 Scenario 2 – lower growth
• 10. Glossary of Abbreviations

• Table 1 – Country statistics Turkey – 2012
• Table 2 – Telephone network statistics – March 2012
• Table 3 – Internet user statistics – 2012
• Table 4 – Broadband subscriber statistics – June 2012
• Table 5 – Mobile statistics – June 2012
• Table 6 – National telecommunications authority
• Table 7 – GDP growth and inflation – 2005 - 2013
• Table 8 – Telecoms revenue and investment – 2004 - 2012
• Table 9 – Turk Telekom – Revenue, profit and EBITDA – 2007 - 2012
• Table 10 – Turk Telekom – Fixed-line revenue, EBITDA and PSTN ARPU – 2007 - 2012
• Table 11 – Superonline financial data – 2009 - 2012
• Table 12 – Fixed lines in service and teledensity – 1995 - 2012
• Table 13 – Internet user and penetration rate – 1998 - 2012
• Table 14 – Broadband subscribers and penetration – 2001 - 2012
• Table 15 – Broadband subscribers by access technology – 2004 - 2012
• Table 16 – ISP market share – June 2012
• Table 17 – Fixed Broadband subscriptions by speed – June 2012
• Table 18 – Turk Telekom ADSL ARPU and proportion of total fixed-line revenue – 2007 - 2012
• Table 19 – Superonline FttX homes passed and subscribers – 2011 - 2012
• Table 20 – Electronic signatures in use – June 2012
• Table 21 – Internet activities by Internet users – January - March 2012
• Table 22 – Audience share by channel – 2011
• Table 23 – Satellite pay TV subscribers per operator – 2010 - 2012
• Table 24 – D-Smart subscribers – 2007 - 2012
• Table 25 – Mobile subscribers and penetration rate – 1995 - 2012
• Table 26 – 2G and 3G subscribers – 2009 – 2012
• Table 27 – Mobile operators, subscribers and annual change – June 2012
• Table 28 – Mobile subscribers by operator – 2007 - 2012
• Table 29 – Mobile operators’ market share – 2007 – 2012
• Table 30 – Mobile Telecom revenue – 2004 - 2011
• Table 31 – ARPU levels per operator – 2011 - 2012
• Table 32 – Mobile revenue per service type per operator – March – June 2012
• Table 33 – Turkcell group financial data – 2005 - 2012
• Table 34 – Turkcell Turkey average monthly ARPU – pre and postpaid – 2001 - 2012
• Table 35 – Turkcell Turkey average monthly MOU and churn – 2001 - 2012
• Table 36 – Turkcell smartphone penetration – 2012
• Table 37 – Vodafone pre and postpaid ARPU – 2006 - 2012
• Table 38 – Avea revenue and EBITDA – 2007 - 2012
• Table 39 – Avea prepaid, postpaid and blended ARPU and blended MOU – 2007 - 2012
• Table 40 – Ratio of prepaid to postpaid subscribers – 2000 - 2012
• Table 41 – Turkcell prepaid subscribers – 2001 - 2012
• Table 42 – Vodafone prepaid subscribers – 2006 - 2012
• Table 43 – Avea prepaid subscribers – 2007 - 2012
• Table 44 – Numbers of SMS and MMS sent – 2004 - 2012
• Table 45 – Mobile broadband subscribers – 2012
• Table 46 – Mobile Internet subscribers and usage – 2010 - 2012
• Table 47 – Turkcell mobile Internet revenue – 2009 - 2012
• Table 48 – Turkcell mobile broadband revenue – 2012
• Table 49 – Forecast broadband subscribers – higher market growth scenario – 2012; 2015; 2020
• Table 50 – Forecast broadband subscribers – lower market growth scenario – 2012; 2015; 2020
• Table 51 – Forecast mobile subscribers in Turkey – higher growth scenario – 2012;2015; 2020
• Table 52 – Forecast mobile subscribers in Turkey – lower growth scenario – 2012;2015; 2020

• Chart 1 – Turkey fixed-line and mobile subscribers – 2000 – 2012

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