IDC: LTE to drive telco IT spend in Turkey to $1.29B in 2015

Investments in LTE networks are expected to drive information technology (IT) spending in Turkey's communications sector to $1.29 billion (€1.2 billion) in 2015, as the country's three operators Turkcell, Vodafone Turkey and Avea race to deploy their LTE networks according to IDC.

"Turkey predominantly has 3G networks at present, and 4G/LTE investments are expected to commence in 2015," said Jebin George, a senior research analyst at IDC. The company did not provide a comparison figure for 2014, but previous reports indicate that expectations for IT spending have fallen from previous forecasts of around $1.4 billion for the communications sector in 2014 and 2015.

George also noted that while a major portion of service providers' capital expenditure will be concentrated on LTE networks in the near future, other services would increasingly come into the mix.

"Like elsewhere in the Middle East and Africa region, telcos in Turkey are also focusing on expanding their portfolios by providing value-added IT services. The focus is expected to be on machine-to-machine (M2M) infrastructure, smart solutions, and cloud computing, along with more traditional offerings such as data centres and disaster recovery," he added.

Turkey's telecoms regulator this week set €2.3 billion ($2.44 billion) as the minimum price that mobile operators must pay to secure frequency bands for LTE (4G) network and services.

In a statement on Wednesday that cited a decision by the Council of Ministers, the Information and Communication Technologies Authority (ICTA) said 20 blocks in the 800, 900, 1800, 2100 and 2600 MHz bands will be auctioned off. The Hurriyet Daily News noted that the 4G auction will take place in May, and said the government's goal is to achieve 90 per cent 4G population coverage in the next six years.

Overall spending on IT in Turkey is expected to reach $11.7 billion this year with the consumer, telecommunications, and finance verticals set to be the three biggest spenders according to IDC.

IT spending in the country is expected to show positive growth over IDC's 2014–2018 forecast period, averaging out at a compound annual growth rate (CAGR) of 3.9 per cent. The consumer, communications and finance sectors will remain the biggest IT spenders during this time, while healthcare, education, and utilities will be among the fastest growing sectors, the analyst company added.

For more:
- see this IDC release

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