Turkey is one of the World’s Most Promising Markets for IT Growth.
Last week the government confirmed that the 4G tender, in which mobile network operators (MNOs) will bid for frequency spectrum bands worth billions of dollars to run their 4G networks on, will go ahead on 26th August. The spectrum auction had been delayed after President Tayyip Erdoğan suggested, perhaps naively, that the country move directly from 3G to 5G. His remarks raised questions about the feasibility of advancing the country’s infrastructure and sparked debates in the media about possible cancellation of the tender. It’s been a tricky few months for investors and MNOs in the region, but the announcement that 4G will proceed has given a big boost to the IT industry. Manufacturers and service providers are poised to develop business in the country’s key sectors and consumers are lining up for a big upgrade to their mobile broadband productivity.
With an area of 302,535 square miles, Turkey is 40% larger than France and over three times the size of the UK. It borders Greece, Bulgaria, Armenia, Georgia, Iran, Iraq and Syria and boasts easy land and sea access to the Gulf States, Near East and North Africa. It has the world’s 16th largest economy and will host the G20 summit next month. The International Monetary Fund expects economic growth in Turkey to remain strong, with GDP up 3% in 2015 and 2016. Turkey’s retail sector is estimated to have reached a value of $310 billion in 2014 and is expected to grow with a CAGR of 7% in value and 4% in volume between 2015 and 2018.
Turkey’s mobile market is among the largest in the Middle East and Africa, and with Turkey’s sizable population characterised as young, increasingly urbanised, and technically savvy, there is a lot of scope for further growth. Considering that mobile broadband has emerged as the most popular platform for Internet delivery, overtaking fixed-line ADSL, the market potential is abundant, especially in fast-growing cities of Istanbul, Ankara, Izmir and Antalya.
The three leading mobile operators Turkcell, Vodafone and Avea have a healthy infrastructure-based competition and all offer robust 3G coverage. The upcoming spectrum auction has been pitched as a "4.5G" tender, signalling a positive desire to extend LTE coverage, and highlights the government’s progressive plan to become one of the first countries in the region to make the transition to 5G. The government has stated that 4G coverage should reach 90% of the population within six years – an impressive rate of growth.
With mature mobile subscription penetration levels, Turkey’s technology-literate population has been quick to embrace smartphones and other mobile technology. Investments in LTE networks are expected to drive overall IT spending this year to $11.7 billion with the consumer, telecoms and finance sectors set to lead the way in the race to capitalise on next generation networks. This spending is forecast to increase at a CAGR of 3.9% until 2018. The country’s MNOs are expected to focus on expanding their portfolios by providing value-added IT services such as Machine-to-Machine (M2M) and cloud computing infrastructure.
The finance vertical, which includes banking, insurance, and securities and investments, will be investing $972.38 million, according to the market intelligence firm International Data Corporation. Banks in Turkey face heavy competition and are focusing on providing innovative solutions that leverage the latest technology advances. Mobility is a key component, and, given the nature of financial data, there is also a strong focus on security.
With so much opportunity in Turkey, it is an exciting new business arena for Cradlepoint. Specialising in fully PCI-compliant network failover solutions, with features such as Out-of-Band Management and products to meet the needs of consumer, business, and M2M-IoT applications, our products offer the perfect solution for finance, transportation, healthcare, education, and construction industries. We have partnered with Encore, our regional value-added distributor, to bring Cradlepoint solutions to the market in Turkey. They have extensive knowledge of the banking, transportation, and hospitality industries – and are the leaders in retail automation POS terminals.
The Cradlepoint COR IBR600 Series is built for M2M networks and is ideal for ATMs and retail POS. It’s an affordable, highly featured, compact router designed for critical business and enterprise applications that require 24x7 connectivity.
Encore has the largest field services team in Turkey, enabling them to successfully deliver IT solutions that will make the most of the country’s investment in 4G. Together we will be working across market verticals to transform distributed enterprises and emerging industries that require mobility, reliability, and security.