Delays in Türkiye’s 5G rollout costing billions monthly: Report

While 124 countries have implemented 5G technology, Türkiye is racing to close the gap, hindered by challenges in fiber infrastructure investment.

According to Vodafone Türkiye CEO Engin Aksoy, speaking to Türkiye daily, the delay in 5G adoption costs the country approximately ₺10 billion ($282.2 million) per month, amounting to ₺120 billion ($3.38 billion) in loss for each year of postponement.

Türkiye aims for 2026 5G launch amid infrastructure hurdles

The Ministry of Transport and Infrastructure has set its sights on 2026 for the first 5G signal in Türkiye. GSM operators are preparing for the spectrum auction, expected later this year.

Aksoy emphasized operators are ready, adding that Türkiye’s 5G rollout will involve advanced 5.5G technology, which offers greater capabilities than standard 5G.

However, the road to 5G requires significant improvements in fiber infrastructure. Aksoy noted that Türkiye needs at least 2 million kilometers of fiber cable to match the OECD average by 2030. This entails increasing fiber deployment by 17% annually.

Failure to address these deficiencies could hinder Türkiye’s competitiveness in the global digital economy.

Fiber infrastructure and economic impact

Aksoy underscored the economic potential of 5G, stating, “The adoption of 5G in Türkiye could generate over ₺1 trillion ($28.2 billion) in revenue over 15 years, with an additional ₺479 billion ($13.5 billion) gross domestic product (GDP) growth.” He also highlighted the importance of expanding fiber broadband access, which could contribute 19 billion lira annually to Türkiye’s GDP by 2030.

Despite this potential, Türkiye lags behind in fiber infrastructure. Currently, only six out of every 100 people in Türkiye have fiber broadband subscriptions, compared to an OECD average of 12. Some countries exceed 28 subscriptions per 100 people.

Türkiye ranks 110th globally in fixed broadband speeds, underscoring the urgent need for investment.

A strategic approach to 5G and beyond

Türkiye’s Middle-Term Plan and Development Plan prioritizes digital transformation as a key objective. Aksoy stressed the need for long-term strategies, saying, “Spectrum allocations should encourage infrastructure investments and maintain a balance between costs and obligations.”

He called for fair licensing policies and suggested establishing a shared infrastructure company to accelerate progress while avoiding redundant investments.

The expiration of current frequency licenses in 2029 also presents an opportunity for a roadmap to streamline investments and align 5G advancements with local manufacturing and device compatibility goals.

Public and private sector collaboration

Aksoy highlighted the role of collaborative efforts, including the Türkiye Wealth Fund’s potential leadership in establishing a shared infrastructure company.

This initiative, he said, would optimize resources and speed up investments critical for the country’s digital transformation.