Current Situation and Future of Information Tech. in Turkey
Yavuz Göktaylar
https://tr.linkedin.com/pub/yavuz-göktaylar/4a/a50/b32
August, 2015 Ankara, Turkey
Information and Communication Technologies Authority
(ICTA)
Agenda
A look on Turkey
Turkish ICT Market
Growth Prospects
Conclusion
A look on Turkey
Turkey - I
Middle income country with large pool of
potential
customers with median age of
30.1
Source: TurkStat, Population Projections, 2013-2075
Turkey - II
3.7 percent average yearly
growth in real GDP between
1998-2014
Source: TurkStat
Turkey - III
Ability to access neighboring
countries’
markets
Turkey - IV
Open markets for competition and
foreign direct
investment
Turkey - V
Source:TurkStat, Research and Development Activities Survey
Turkey - VI
Turkey has 59 TDZs, 44 are active and 15
are under
construction
Turkish ICT Market
Largest ICT Firms – 2014
Based on net sales, the largest ICT firms in Turkey
Source: Bilişim500
Market Size
Approximately 25.3 billion USD
8.4 percent decline from previous year in USD
Note: Data for forecasting are obtained from TÜBİSAD
Market Components - I
IT Market is projected to grow faster than Communications Technology Market
Note: Data for forecasting are obtained from TÜBİSAD
Market Components - II
Shares of IT Software, Communications Hardware & IT Services are projected to rise
Note: Data for forecasting are obtained from TÜBİSAD
Employment
Note: Data for forecasting are obtained from TÜBİSAD
Investment
≈ 2.5 billion USD investment by comm. services firms
Source: BTK
Growth Prospects
Market Leaders – Com. Services
In total, there are 671 firms with 1103 authorizations
(August, 2015)
Market Leaders – Com. Hardware
Brands Distributers
Fixed Broadband
Increasing trend
Source: BTK
Internet Usage - Fixed
In 4 years,
internet usage of fixed broadband
will increase almost three
times
Source: BTK
Mobile Broadband
Increasing trend
Source: BTK
Broadband Usage
In 4 years,
internet usage of mobile
broadband will increase almost
four times
Source: BTK
Mobile Telephone
Increasing trend
Source: BTK
Spectrum Auction: IMT Advanced - I
Growth opportunities are mostly exhausted
Except for fibre, fixed broadband seems to be mature
There is migration pattern towards fibre from DSL
3G is getting closer to saturation point
Intense rivalry: Stagnant and even declining ARPU at mobile
Firms are searching new profitable areas
Machine to Machine subscriptions
Promote more heavy broadband/data usage particularly at mobile side that implies introduction of 4G; fibre at fixed side
Spectrum Auction with reserve price of almost 2.7 billion Euro for
390.4 MHz at 800, 900, 1800, 2100 and 2600 MHz.
Spectrum Auction: IMT Advanced- II
Result: Total bid of 3 existing network operators is almost equal to 3.9 billions Euros.
> 30 billions USD investment in the next 13 years on networks
Half of this amount is expected to be supplied by domestically developed technology and production
ULAK Project: Design and development of indigenous LTE base stations
Developers: Aselsan, Netaş and Argela
New services will be provided on April, 2016.
A great stimulus for expansion of ICT market in Turkey
Diffusion: IMT Advanced
2025: 83 millions subs., 97%
M2M ignored
Fixed Telephone
Declining trend
Source: BTK
Comm. Hardware – Trade Balance
Turkey is net importer and we have a challenge to balance it
Source: OECD, ITCS database
42 53 91 119 82 91 117 157 192
1,739
2,023
2,725
2,524
2,402
2,719
3,115
2,915
4,021
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
2005 2006 2007 2008 2009 2010 2011 2012 2013
Millions USD
Export Import
Comm. Hardware – Smartphones
74 percent increase is projected in connections with smartphones
Source: GSMA Intelligence
Market Leaders – IT Hardware
Fragmented with many global and local players
Market Leaders – IT Software
Fragmented with many global and local players
Households Penetration - I
Portable computers and Smart TV penetration rates have increasing trend
Source: TurkStat, Information and Communication Technology (ICT) Usage Survey in Households and Individuals, 2004-2015
Households Penetration - II
Mobile phone penetration rate has slightly increasing trend
Source: TurkStat, Information and Communication Technology (ICT) Usage Survey in Households and Individuals, 2004-2015
ICT Usage in Enterprises
>= 90 percent ICT usage
Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)
ICT Usage in Households and Individuals - I
Steady increase in ICT usage
Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)
ICT Usage in Households and Individuals - II
Positive trend
Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)
