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Vodafone Türkiye eyes privatization of state-run Turksat's cable operations: CEO

Vodafone logo displayed on a storefront in Istanbul, Türkiye, on February 10, 2023. (Adobe Stock Photo)
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Vodafone logo displayed on a storefront in Istanbul, Türkiye, on February 10, 2023. (Adobe Stock Photo)
June 27, 2025 10:26 AM GMT+03:00

Vodafone Türkiye, one of the country’s largest telecom companies, is interested in participating in the potential privatization of the cable operations of Turksat, a state-owned satellite and cable services provider under the Türkiye Wealth Fund, CEO Engin Aksoy said Thursday.

Speaking during a live interview with business-focused Bloomberg HT, Aksoy emphasized that if Turksat's cable operations were to be separated from its satellite business and offered under clear terms, Vodafone Türkiye would consider joining the process.

Turksat currently provides cable services to 5 million households, 1 million of which already have fiber connections.

Turksat satellite ground station with Turkish flag emblem in Türkiye, accessed on June 27, 2025. (AA Photo)
Turksat satellite ground station with Turkish flag emblem in Türkiye, accessed on June 27, 2025. (AA Photo)

Vodafone Türkiye rekindles debate over fiber monopoly

Aksoy underlined that transforming the remaining 4 million to fiber could significantly contribute to the country’s digital infrastructure, provided the market conditions are properly structured and competitive.

Looking ahead, Aksoy described the establishment of a joint fiber infrastructure company as “the biggest opportunity window” for Türkiye’s digital future. He noted that the state-run telecommunications company Turk Telekom currently holds exclusive rights to a large portion of the country’s fixed-line infrastructure, arguing that monopolistic structures have slowed progress in expanding nationwide fiber capacity.

Turk Telekom controls 78% of Türkiye’s 577,000-kilometer fiber network under a concession set to expire in 2026. In July 2024, Vodafone Türkiye reportedly proposed separating telecom services from infrastructure, but Turk Telekom rejected the idea, describing it as an attempt to seize assets that will revert to the state after the concession ends, according to a Reuters report.

Exterior view of a Turk Telekom building in Izmir, Türkiye, on July 1, 2023. (Adobe Stock Photo)
Exterior view of a Turk Telekom building in Izmir, Türkiye, on July 1, 2023. (Adobe Stock Photo)

Vodafone Türkiye urges joint fiber firm as broadband lags

Türkiye trails its peers in fixed-line broadband usage, with 23 subscribers per 100 inhabitants as of last year, well below the OECD average of 36.

Aksoy said that a shared infrastructure entity, supported by capital contributions from multiple stakeholders, could accelerate deployment and enhance service quality. He warned that without such an initiative, fiber access might not reach all households until the 2040s.

Stressing the urgency of the matter, Aksoy concluded that Türkiye now faces a major opportunity to reshape its digital infrastructure and must act decisively through collaborative and competitive strategies.

Column chart compares fixed broadband penetration and connection speeds across OECD member countries, accessed on June 27, 2025. (Chart via OECD)
Column chart compares fixed broadband penetration and connection speeds across OECD member countries, accessed on June 27, 2025. (Chart via OECD)

5G success hinges on balanced costs and rollout

Touching on the transition to 5G, Aksoy underlined the importance of designing a balanced investment commitment structure and keeping spectrum auction fees at reasonable levels. He explained that 5G technology offers faster internet speeds and lower latency, enabling more connected devices, from smart appliances to industrial robots, ultimately boosting corporate productivity and automation processes.

While many countries have already adopted 5G, Aksoy confirmed that Vodafone Türkiye is technically ready for the transition. He stated that for Türkiye to realize the full benefits of 5G, spectrum license fees should be set with investment needs in mind. Additionally, spectrum allocation should be done fairly among the three main operators, ensuring that all players can develop services and expand nationwide coverage.

Türkiye plans to hold its 5G tender in August, with the first signals expected by 2026, Transport and Infrastructure Minister Abdulkadir Uraloglu announced.

Aksoy noted that the company’s total investment in Türkiye has reached ₺284 billion ($7.12 billion) to date.

Founded in 2005 through the acquisition of Turkish mobile operator Telsim, Vodafone Türkiye is a subsidiary of the U.K.-based Vodafone Group. The company employs over 3,300 people and serves 25.2 million mobile subscribers across Türkiye.

June 27, 2025 12:39 PM GMT+03:00
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