Mobile penetration, already at 50 percent of a population of 70 million, is growing quickly. Even though minutes-of-use per customer is lower than the European average, Kemvall sees this as an opportunity for operators to stimulate an increase in mobile usage. This, coupled with Turkey's young demographic (the average age is 27.5), should drive significant and sustained growth in the mobile market.
Turkey has three principal mobile operators – Turkcell, Avea and Telsim – that offer 2G and 2.5G services. While data service usage is moderate at present, the introduction of EDGE-enabled services by Turkcell and Avea should spur greater uptake.
"Ericsson is the sole supplier to Turkcell and the sole supplier of the core network and EDGE upgrade to Avea, which translates to 75 percent of the Turkish market," Kemvall says. "We have been working closely with both operators to help them capitalize on their market potential."
Together, Turkcell and Avea represent more than 80 percent of the Turkish customer base. The main limit to EDGE service uptake is the number of EDGE-enabled phones in Turkey – about 1 million.
Kemvall says: "With the introduction of EDGE technology, existing data services will be more attractive and the number of downloads will increase due to faster speeds and greater bandwidth. Football is massive in Turkey, and video football is one of the most popular services available. With EDGE, consumers will be able to see the latest goals and match highlights more quickly. Other popular services, such as finding restaurants and weather information, will also benefit from EDGE's greater speeds."
Turkcell alone offers more than 100 services, a figure that is set to increase with the introduction of EDGE. Turkey was one of the first countries to offer GPRS services and quickly adopts new services due to its strategic location between Europe, Asia and the Middle East and its close relationships with Germany and the Netherlands.
The fixed market is also set for change as the Turkish government readies for privatization of the network. Just as competition brought greater choice in the mobile market, Kemvall says, "the privatization of the fixed-line market should bring an increase in available services and marketing".
Fixed-line penetration is at 27 percent and there are only half a million ADSL subscribers. But prices are dropping and subscriptions and PC sales are increasing. The government is making a concerted effort to introduce more PCs into schools and institutions and more small and medium-sized companies are getting broadband.
Kemvall says: "The future looks bright for Turkey: the government is privatizing the fixed network, internet usage is increasing and EDGE is being introduced. The fixed and cellular markets show great potential; Ericsson is helping Turkey to realize it."
