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| Turkey's new 5G network connects the future |
Turkey awarded licenses for its next-generation mobile networks in a landmark 5G spectrum tender that raised $2.95 billion. The three major telecom operators secured the rights to build the country's new digital infrastructure. The government plans to launch commercial 5G services on April 1, 2026 .
The tender distributed key airwaves across two frequency bands. It also extended the operators' existing licenses for older mobile technologies. This dual approach ensures a smooth transition to the new network. The rollout will start in big population centers before expanding across the country .
Turkcell made the highest total investment, with winning bids that reached $1.22 billion. The company won the A1 package in the 700 MHz band for $429 million. It also secured four separate blocks in the 3.5 GHz frequency range .
Turk Telekom committed $1.1 billion for its 5G future. It purchased the A3 package in the 700 MHz band for $425 million. The company also added two blocks in the 3.5 GHz band to its portfolio .
Vodafone spent a total of $627 million to secure its 5G position. It won the A2 package in the 700 MHz band with a bid of $426 million. The company also acquired a single block in the 3.5 GHz range .
The auction offered a total of eleven frequency packages. This included three blocks in the 700 MHz band and eight blocks in the 3.5 GHz band. The total minimum price for all packages was set at $2.13 billion, a figure the final bids comfortably surpassed .
The tender results trigger a new investment cycle for the Turkish telecom sector. Analysts expect the three operators to spend billions more to build the physical 5G networks. This spending will cover new base stations and upgrades to fiber optic backbones .
The government has set a clear timeline for the service launch. Transport and Infrastructure Minister Abdulkadir Uraloglu confirmed the first 5G signal will be sent on April 1, 2026. He said the network will grow to cover the whole nation in a little over a year .
The 5G tender also brought long-term certainty for existing mobile services. The operators' licenses for 2G, 3G, and 4.5G networks were due to end in 2029. These rights have now been extended until the end of 2042. Companies will pay five percent of their yearly sales from these services to the government .
This shift in technology will change the mobile device market. The minister noted there are about 85 million mobile subscribers in Turkey. Currently, about 22 million phones are compatible with 5G technology. Users of older 2G devices will need to change both their phones and SIM cards to access the new network .
The move to 5G involves a strong push for domestic technology. The government required that forty-five percent of 4.5G infrastructure be locally sourced. This rate has now climbed to fifty-two percent. The 5G tender will raise this domestic content requirement to sixty percent. The rules also state that thirty percent of products used must have intellectual property rights held within Turkey .
Financial analysts watched the auction closely for its impact on company finances. Gedik Investment had predicted total payments could reach $3.5 billion. The final figure came close to that forecast. The firm expected both Turkcell and Turk Telekom to pay over $1 billion each. Vodafone was seen focusing on lower-frequency bands, which matched the outcome .
The cost of the 5G licenses has weighed on the telecom companies' stock prices. Investors are concerned about the high upfront fees and the future network costs. This pressure on shares was seen earlier in the week before the tender .
The long-term financial outlook for the operators varies. Analysts at Gedik Investment suggest Turkcell might have the ability to pay dividends to shareholders as early as this year. This depends on the final auction prices. They see Turk Telekom possibly restarting dividend payments by 2027. The analyst Mehmet Mumcu said he prefers Turkcell due to its stronger balance sheet and its move toward being a technology company .
The previous major spectrum auction in Turkey was held in 2015. That sale was for 4.5G services. The three operators paid a total of 4 billion euros for licenses that lasted about fifteen years .
Turkcell's Chief Executive Officer, Ali Taha Koç, called 5G a turning point for the country's digital future. He said the technology will change every part of life and all business sectors. He described a world where machines talk to each other, cities think, and vehicles make choices. Koç stated that Turkcell has already modernized much of its network to get ready for 5G. The company is also working on a domestic 5G communication system called ULAK .
The new 5G networks promise much faster internet speeds. They also offer very low lag, which is important for online gaming and remote control of machinery. The technology can connect a huge number of devices at once. This will help the growth of smart cities, the Internet of Things, self-driving cars, and advanced factory automation .
The tender process marks a key step in Turkey's digital development. The country is now set to join others that have already launched 5G. The government and telecom providers are starting a complex and costly network upgrade. This effort aims to bring faster and more capable mobile internet to people and businesses across Turkey .