Newsletters
The Turkish government has extended the fixed-line (wired telephone and broadband) concession of state-run telecommunications company Turk Telekom until 2050, aiming for a direct long-term contribution of $20 billion to infrastructure investments, the Ministry of Transport and Infrastructure announced on Wednesday.
The concession was originally set to expire in 2026, and the Information and Communication Technologies Authority (BTK) was required to decide on renewal no later than September 1, 2025.
In July 2024, Vodafone Türkiye — the local subsidiary of U.K.-based Vodafone — reportedly proposed separating telecom services from infrastructure under a new framework, according to a Reuters report. With the extension of the concession, the possibility of such a restructuring has been taken off the table.
Minister Abdulkadir Uraloglu said in a written statement that the agreement between the BTK and Turk Telekom aims to ensure continuity in fixed services and strengthen the country’s digital transformation.
Uraloglu added that the deal represents a new stage in Türkiye’s digital development. "With this agreement, a model has been established that will ensure the continuity of fixed infrastructure investments, which are critical in Türkiye’s digitalization journey," he said.
Uraloglu described the infrastructure as inseparable from the state itself, noting, "Turk Telekom’s fixed communication infrastructure is also Türkiye’s infrastructure. Therefore, every investment made by Turk Telekom is a direct gain for the country."
Turk Telekom is 60% owned by Türkiye Wealth Fund — the country’s sovereign wealth fund — and 25% by the Treasury and Finance Ministry, with the remaining shares publicly traded on the stock exchange.
The company currently controls 78% of Türkiye’s 577,000-kilometer nationwide fiber network, which forms the backbone of its fixed-line services. However, an OECD report shows that Türkiye still lags behind other member countries in fixed broadband adoption, recording 23 subscriptions per 100 people last year compared with the OECD average of 36.
Reflecting the need for large-scale fiber investments across the country, Vodafone Türkiye CEO Engin Aksoy argued that the state monopoly hampers the progress of infrastructure development, adding that if Türkiye were to consider separating telecom services from infrastructure, the company would be interested.
1 min read
2 min read
