TELKODER Report: No Significant Changes Observed in Sector Revenues Over the Past Three Months
Forex - The Association of Free Telecommunications Operators (TELKODER) announced its report on the current status and significant developments in the Electronic Communications Sector for November 2024 to the public.
Prepared using data obtained from reliable sources such as BTK, TURKSTAT, and BIST, this report provides a comprehensive analysis of the sector's performance over the last three months. TELKODER's regular reports on the sector play a critical role in informing the public accurately and ensuring transparency within the industry.
Sector Size and Stable Performance In the electronic communications sector, revenues that stood at 17.06 billion TL at the end of 2005 have reached a size of 224.54 billion TL by the end of 2023, while inflation-adjusted revenues, which were 13.91 billion TL in 2005, amounted to 14.79 billion TL by the end of 2023. While the inflation-adjusted revenue for the second quarter of 2023 reached 3.71 billion TL, it was recorded as 3.9 billion TL by the second quarter of 2024. During the last three-month period, there has been no significant change in the sector’s revenues, and when viewed since 2005, it is evident that there has been no substantial growth in revenues.
Need for Increased Competition The market share of alternative operators in the sector decreased from 9.31% in the first quarter of 2024 to 8.02% in the second quarter. This rate remains considerably low when compared to EU countries, indicating the necessity of developing new strategies to enhance competition in the sector.
Continued Decline in Market Value The market value of the two largest players in the electronic communications sector has been on a long-term declining trend. The total market value, which was 22.90 billion dollars in 2008, dropped to 10.03 billion dollars by November 2024. This decline reflects the overall economic conditions in the country and changes in company performances within the sector.
Decrease in Broadband Subscribers and Fiber Investments As of the second quarter of 2024, a notable decrease in the number of broadband subscribers has been observed, while the fiber subscriber ratio increased from 7.41% to 7.92%. However, the drop in the overall number of subscribers indicates that the growth potential in the sector remains limited. Therefore, accelerating investments in fiber infrastructure and removing existing barriers are critical for the future of the sector.
Slow Growth in Fiber Infrastructure Although the total length of fiber infrastructure reached 576,569 km by the second quarter of 2024, the growth rate of fiber infrastructure remains slow in line with the sector's growth expectations. The rapid expansion of fiber infrastructure is of great importance for faster internet access and digitalization. Strategic policies and targets regarding fiber infrastructure, which holds significant importance for both the country and the telecommunications sector, need to be urgently developed with the input of all industry stakeholders.
Stagnation in Satellite Internet Services There has been no significant change in the number of subscribers for satellite internet services, and since 2011, there has been no remarkable development observed within the sector. This situation indicates that alternative broadband services require further development in the sector.
Rapid Decline in Fixed Voice Traffic Fixed voice traffic continues to rapidly lose its share of total voice traffic. The share of fixed voice traffic, which was 17.4% in 2009, decreased to 1.47% by the second quarter of 2024. This decline demonstrates that fixed voice infrastructure is becoming increasingly less preferred, while the share of mobile voice traffic is growing.
Data Center Operations and Investment Expectations Regulations and investments related to data center operations and internet exchange points can guide the sector's growth in the coming years. In accordance with the targets set for 2025, speeding up the work on data center security standards and internet exchange points is crucial.
TELKODER Chairman Halil Nadir Teberci stated, “The electronic communications sector plays a critical role in our country’s digital transformation process. Our regularly published reports aim to inform the public by revealing the current state of the sector, areas for development, and the strategic steps needed. As highlighted in our November 2024 report, the low levels of competition and issues related to the rapid expansion of fiber infrastructure nationwide are among the fundamental issues that need to be resolved for the sector to achieve a stronger growth potential. These reports aim to guide the industry stakeholders and contribute to the formation of a sustainable and competitive ecosystem.”
The electronic communications sector directly affects every segment of society as one of the cornerstones of rapid technological changes and digitalization. Therefore, closely monitoring the dynamics and performance of the sector is of strategic importance for businesses, investors, and decision-makers. TELKODER not only analyzes the current situation with these reports but also aims to raise public awareness by providing significant insights into the future of the sector. The report addresses various important indicators, from sector revenues to competitive environments, from infrastructure investments to market dynamics, and thoroughly discusses the current status of the sector as well as its future needs.