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Publication Date: July 2008
EVENT SPOTLIGHT
The Turkish government will start the process for a 3G license auction in November 2008, after implementing mobile number portability (MNP) in mid-November. These changes will help move Turkey toward parity with other European countries: Turkey is one of the last countries in the region to introduce 3G services and must implement MNP since the European Union Telecom Regulator requires the standard for entry to the European Union. Moreover, although household broadband penetration is fairly high at 20% in 2007, the fixed incumbent, Turk Telekom, has a monopoly on the broadband sector, and 3G-based broadband access is likely to result in significantly higher adoption. We expect that rapid adoption of 3G services in Turkey will enable the three existing mobile operators to compensate for declining voice revenues with advanced data services, but we are more skeptical of the prospects of a fourth operator, particularly if it decides to pursue a 3G-centric strategy.
Author: Laure Rudelle-Arnaud and Dearbhla McHenry
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