Turkey - Telecommunication Services: A steady growth, technology driven market (Strategy, Performance and Risk Analysis)
Turkey is the second-largest economy in the Middle East region after Saudi Arabia, and as such offers growth opportunities for the telecommunications industry. High volume mobile subscriptions and the opportunity for internet providers to enter a growth market make Turkey an attractive prospect; however, political uncertainty and macroeconomic challenges prevail.
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Mobile services generate the majority of revenue
Mobile service revenue declined at a CAGR of -3.3% from US$9,420 million in 2012 to US$8,241 million in 2016, due to a fall in voice revenue. Driven by a demand for data, mobile revenue will grow at a CAGR of 1.2% over 2016-2021, to reach US$8,737 million in 2021.
Innovative subscriber friendly plans reduce churn
A low churn rate is indicative of customer retention. Competition, subscriber-friendly plans, and innovations in mobile technologies have led to a decline in the churn rate, from 32.8% in 2012 to 30.6% in 2016. The rate will decline further over 2016-2021, to reach 27.4% in 2021.
Launch of 5G
Initiatives by the Information and Communication Technologies Authority (ICTA) to facilitate the launch of 5G, offer growth opportunities for the industry. ICTA launched the 5GTR forum in June 2016, comprising operators and concerned authorities. It will research the standardization of 5G to help expedite the domestic rollout of the technology. Several operators and network vendors have already entered into MoUs on 5G. The launch will also enable telecom operators to enhance data usage, which will have a positive impact on profits.
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