Market Trends of Turkey Telecom Industry
This section covers the major market trends shaping the Turkey Telecom Market according to our research experts:
Increase in Broadband Penetration
- Turkey might enter the digital economy faster if high-speed internet access infrastructure were built quickly and effectively. This entails offering everyone access to high-speed Internet and valuable apps, even those that consume much bandwidth. This development would assist Turkey's fair socioeconomic improvement and strengthen its position as a worldwide competitor, positively impacting GDP, job growth, competitiveness, and social welfare.
- With the appropriate mechanisms, Turkey's high-speed internet market might grow heavily in the upcoming years. By next year, 85% of households would have broadband access thanks to this acceleration, compared to 60% under the current scenario. By adopting fixed broadband in an extra 7 million homes, Turkey may increase its GDP by a total of USD 130 billion by next year and create an additional 0.5 million net jobs. People's choices for broadband have also evolved. However, fixed technology continues to be the most dependable, economical, and capable of supplying high-speed, high-capacity Internet. Mobile broadband has been the technology that has brought people online.
- There are several reasons to be impressed with Turkey's fixed broadband development thus far. Over the previous five years, significant improvements in coverage and speed have brought Turkey up to EU average values. The percentage of fiber coverage within overall coverage has rapidly changed to facilitate high-speed internet connectivity. In the past five years, the fixed broadband and mobile industries have seen a considerable competition increase. Robust high-speed broadband deployment has been supported by the present market structure, which features infrastructure-based competition, and by supportive laws and regulations.
- As of early last year, fiber connections accounted for about a quarter of all fixed broadband connections, demonstrating the widespread deployment of fiber-based broadband networks. Even though DSL currently dominates the market, making up roughly two-thirds of connections, its share rapidly falls year over year. The country's activities about smart city ideas, which have emerged as a crucial area of concentration for the burgeoning digital economy and the transition to a knowledge-based economy, are supported by improved fixed and mobile infrastructure.
- According to an ITU report, Turkey's Broadband subscription per 100 inhabitants is expected to increase steadily. The monthly subscription per 100 people is expected to reach 19 by the end of the year from 17 subscriptions in 2019. Encouragingly the number of subscriptions per 100 inhabitants is anticipated to grow to 20 in 2024 and 21 by the end of 2026.
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Satellite Boosting Digital Transformation
- Turkey has emphasized digital transformation to ensure the nation reaches its full potential as it works toward achieving its goal for next year. Turkey is becoming a significant participant in the global telecom industry, and its skills in this sector are growing daily. Turkey advances with its own-built communication satellite. It is one of the few nations able to create and develop its communications satellites as it expands its telecom sector capabilities. As part of the government's National Orbit Program, which aims to have ten satellites in space by next year, the centenary of the Republic of Turkey, Turkey's new 5B communication satellite, has been put into operation. With Türksat 5B, a large region from Africa to the Middle East, from Europe to Asia, would have uninterrupted and secure access to TV transmission and broadband satellite communication.
- By next year, Turkey will implement its national smart cities strategy and action plan. According to President Erdogan, launching the 5B satellite would support the Turkish military's overseas missions. It would provide constant connectivity even in the nation's most isolated and mountainous regions. The Turksat 6A satellite would follow early next year. Along with these technical advances, the nation's telcos have invested in fiber infrastructure. For example, Vodafone Turkey tested a 1Tb/s service late last year to support its 5G network backhaul and enhance the quality of its fixed infrastructure.
- Telecom operators are investing billions of dollars in digital transformation in Turkey. Telecommunications companies are investing in 5G and the tools and infrastructure to enable the nation to deploy new technologies. Using intelligent networks, data analytics, and IoT platforms by the country's prominent telecom players would help to develop sustainable smart cities, simplify, improve the efficiency of services, reduce energy usage, and provide more sustainable living environments. Moreover, the pandemic has boosted internet enterprises, and it is essential to encourage investments in the sector to support the digital revolution.
- The nation's bandwidth capacity was significantly expanded last year with the successful launch of the Turksat 5A and 5B satellites. Turkey's thriving mobile phone sector is one of the world's fastest-growing cellular markets. In January this year, there were 69.95 million internet users in Turkey. Also, at the beginning of the current year, 82.0 percent of Turkey's population used the internet. Internet users in Turkey climbed by 3.9 million (+5.9 percent) between last and current year, according to Kepios research. According to information from GSMA Intelligence, Turkey had 78 million mobile phone connections at the beginning of the year.
- As per the ITU report on Digital Economy, Turkey's Internet penetration is anticipated to rise for the forecast period through 2026. Internet penetration is expected to reach 78.7% by the current year from 70.4% in 2019. The same is expected to grow to 82.3% in 2024 and 84.6% by the end of 2026.
