The Turkish Government gives more importance to the e-Transformation Turkey Project and all the other projects which are line with its information society strategy (Registered electronic mail-KEP, e-visa, e-passport). The young population of Turkey continues to drive the sales of PC’s, cell phones, laptops, consumer electronic devices and cellular voice and data services. There are few telecom operators in Turkey. This lack of main players is due to market entry barriers, which are mainly government regulations restricting operating in the sector.In the telecommunications market, at the end of 2014, Turk Telekom had 12.5 million fixed line users. AVEA, (owned by Turk Telecom) is Turkey’s third largest mobile operator with 16, 2 million GSM mobile subscribers, in 2016 AVEA, Turk Telekom and TTnet (internet provider) merged under Turk Telekom’s name. Turk Telekom owns 99.9% of TTnet, Argela, Innova, Sebit, Sobee and AssisTT, as well as the minority share of ALBtelecom in Albania. 55% of the shares of Turk Telekom belong to Oger Telecom Inc. and 30% belongs to the Turkish Treasury. The remaining 15% is floated on the Istanbul Stock Exchange (BIST). The value of Turk Telekom is over $15 billion. Turk Telekom’s main revenue growth came from ADSL revenues (29%) and from mobile revenues (14%) through AVEA.
As the young population increases and online market expands, the total number of mobile phone subscribers is expected toreach 75 million by 2017, up from 73.2 million in 2015. IT spending on hardware, software, IT services and telecommunication services in Turkey is expected to reach to USD 30 billion by 2017. Telecommunications sector spending in Turkey is expected to grow faster than the world average. With regard to its large domestic market with sizeable potential in the telecommunications sector, sector growth is expected to grow with a CAGR of 7.4 percent during the 2012-2017 period. 5 percent of all households in Turkey have internet access. The percentage of internet users in Turkey is around 56 percent and this is forecast to rise to above 60 percent in 2017.
Turkey’s ambitious vision of 2023, the centennial foundation of the republic envisages grandiose targets for the telecommunicaitons sector in Turkey. These targets include:
Reaching 30 million broadband subscribers
Providing internet connection for 14 million houses at a speed of 1,000 Mbps
Increasing the sector’s share in GDP from 2.9 percent to 8 percent
Becoming one of the top 10 countries in e-transformation
Having 80% of the population computer literate
Increasing the number of firms to 5,500; employees to 65,000; and exports to USD 10 billion in TDZs
Increasing the ICT sector’s size to USD 160 billion, with a market growth of around 15 percent each year
Increasing the R&D expenditure to GDP ratio to 3 percent from 1 percent