Introduction: Strategic Importance of Digital Transformation

The electronic communications sector stands at a critical juncture in the global economy’s digital transformation process. Türkiye’s position in this transformation will directly determine its economic and technological competitiveness for the coming decades. Currently, the sector is constrained by structural problems and narrow-minded approaches, while global examples point to an entirely different potential.

It would not be an exaggeration to say the sector is at a historical turning point. Digital transformation is no longer simply a technological choice, but a struggle for existence in global competition. Telecommunication infrastructure has become the lifeblood of modern economies. The quality of this infrastructure directly determines countries’ mode of existence in the digital age.

Türkiye’s Electronic Communications Sector Current Situation: Anatomy of Structural Problems

According to TELKODER’s latest report, Türkiye’s electronic communications sector is experiencing a critical performance crisis. Sector revenues, adjusted for inflation, have fallen below 2003 levels. Alternative operators’ market share is confined to an extremely limited 8%, with internet speeds significantly lagging behind global averages.

Technological performance indicators clearly reveal the sector’s structural crisis:

• Mobile internet speed: 19.1% below global average (49.76 Mbps)
• Fixed internet speed: Half of the global average (48 Mbps)
• Fiber subscriber rate: Extremely low at 7.92%
• Global ranking: 61st in mobile internet, 102nd in fixed internet

These figures starkly expose the structural weaknesses in Türkiye’s digital competitive capacity.

Structural Bottlenecks of the Sector

Türkiye’s electronic communications sector faces two fundamental structural problems. First, 86.68% of Türk Telekom is under the control of the Wealth Fund and Treasury. This situation creates the most significant obstacle to competition and innovation. Second, alternative operators’ market share remains at 8%.

In European Union countries, alternative operators’ market share averages around 40%. This comparison reveals the pronounced monopolistic structure in Türkiye. A market without competition directly impedes technological innovation and customer-focused service development.

Critical Transformation Processes and Strategic Opportunity Windows

Türkiye’s electronic communications sector is passing through one of its most critical turning points. Three fundamental processes open a unique opportunity window for the sector’s comprehensive restructuring. The simultaneous occurrence of these processes creates a critical threshold for solving the sector’s structural problems.

First Process: Renewal of Türk Telekom’s Privilege Contract

The renewal of the privilege contract expiring in 2026 carries strategic significance far beyond a simple administrative procedure. This process offers an opportunity to evaluate the privatization experience that began in 2005 and reshape the future.

The fundamental aim of privatization was the complete withdrawal of the state from business operations. However, the fact that 86.68% of Türk Telekom remains under the Wealth Fund and Treasury control clearly demonstrates how far this goal has been missed. The renewal of the privilege contract provides a critical opportunity to correct this structural distortion.

Second Process: Structural Transformation of Türksat

The plan to divide Türksat into cable, satellite, and e-government segments is a strategically critical process that could profoundly affect sector competition dynamics. The company’s increasing debt burden (8.6 billion TL) and declining operational performance (satellite occupancy rate dropping from 58% to 47%) underscore the urgency of this transformation.

The future of cable infrastructure can offer significant opportunities for alternative operators. However, it is crucial to adopt a model that increases competition and supports infrastructure diversity. Particularly in metropolitan areas, the effective use of cable networks that can play a complementary role to fiber infrastructure is critical for increasing broadband penetration.

Third Process: 5G Auction and Technological Transformation

The approaching 5G auction represents meanings far beyond a simple frequency allocation. This auction is simultaneously a critical process for testing the sector’s investment capacity and technological transformation potential.

The auction’s specifications could introduce a new model for infrastructure sharing. Domestic technology usage conditions might affect business models in the sector. Coverage obligations could shape operators’ investment plans.

The success of 5G is directly related to the prevalence of fiber infrastructure. The current fiber subscriber rate of 7.92% creates a significant obstacle to 5G transformation. Therefore, it is necessary to clarify the fiber infrastructure strategy and accelerate investments before the 5G auction.

Urban Transformation: An Additional Opportunity Window

The urban transformation process opens a unique opportunity window for telecommunications infrastructure modernization. This process is critically important, especially for widespread fiber infrastructure and establishing the necessary infrastructure for smart city applications.

Alternative operators can develop new collaboration models with local authorities in this process. Collaborative infrastructure planning and investment models, standard right-of-way procedures, and collaborations for smart city applications can be developed.

The interaction and timing of these four processes will shape the sector’s future. Especially the 5G auction has the potential to influence other processes. Therefore, strong coordination and a holistic approach between processes are required.

Lessons from Europe: Successful Transformation Models

The European Union achieved exemplary successes in the telecommunications sector’s adaptation to the digital age. The underlying approach was not to view technological transformation as a narrow infrastructure modernization, but as a comprehensive digital ecosystem transformation.

Gigabit Infrastructure Law: A Strategic Vision

The European Union’s Gigabit Infrastructure Law is more than a technical regulation; it is a strategic vision document that redefines the fundamental infrastructure of the digital economy. The goal of providing at least 1 Gbps speed to all households by 2030 brings with it a revolutionary regulatory framework.

The law’s most striking aspect is its innovative approach that encourages infrastructure sharing and investments. Regulations that facilitate joint investments by multiple operators optimize investment costs and ensure more effective use of resources.

The Deutsche Telekom Model: Pioneer of Digital Transformation

Deutsche Telekom’s transformation story provides the most compelling example of how a classic telecommunications operator can transition to a technology solutions provider. The “Leading Digital Telco” strategy announced in 2020 clearly outlines the roadmap for this transformation.

While aiming to provide fiber internet to 30 million households by 2024, the company simultaneously became a globally significant player in corporate digital transformation through its T-Systems division. This success is underpinned by a systematic approach:

1. Digitalizing existing services,
2. Increasing operational efficiency,
3. Developing solutions specific to vertical sectors,
4. Transitioning to services based on advanced technologies like artificial intelligence, Internet of Things, and cloud computing.

Orange’s SME Strategy: Discovering New Revenue Models

Orange’s strategy for small and medium enterprises offers a striking example of how telecommunications companies can diversify their revenue sources. Services provided through Orange Business Services enabled the company to generate 40% of its revenues from sources outside traditional telecom services.

Digital transformation consulting, cloud-based business solutions, cybersecurity services, and Internet of Things platforms radically transformed the company’s business model. By becoming a one-stop destination for SMEs’ digitalization processes, Orange increased customer loyalty while creating new revenue streams.

The FiberCop Model in Italy: Wholesale-Only Success

The wholesale-only model implemented in Italy offers an innovative approach to infrastructure sharing. With the establishment of FiberCop, infrastructure and services were separated, investment costs were optimized, and fair access was provided for alternative operators.

This model significantly accelerated fiber infrastructure expansion. The FiberCop experience offers valuable lessons, especially for the contract renewal process in Türkiye. The principles of neutral infrastructure operation, investment optimization, and fair access emerge as applicable solutions.

European examples clearly demonstrate that a strategic and inclusive transformation approach is possible in the telecommunications sector, beyond narrow corporate perspectives.

Success Stories of Alternative Operators in Europe

The digital transformation in the European telecommunications sector is not just about major operators, but also includes success stories of innovative alternative operators. The examples of CityFibre and Adamo clearly demonstrate how competitive market dynamics work and the critical role of alternative operators in digital infrastructure transformation.

CityFibre (United Kingdom): Independent Fiber Infrastructure Model

CityFibre, the UK’s largest independent fiber infrastructure company, rapidly expanded its fiber infrastructure investments through strong collaborations with local governments. The fundamental strategies behind the company’s success were:

1. Adopting a wholesale-only model to provide equal access to all service providers,
2. Developing strategic partnerships with local governments,
3. Implementing an infrastructure expansion program worth 8 billion pounds.

The company clearly demonstrated how an alternative operator can make large-scale infrastructure investments. The CityFibre model represents one of the most striking examples of how competition and infrastructure sharing can coexist.

Adamo (Spain): Digital Transformation in Rural Areas

Adamo made a critical contribution to closing the digital divide by establishing fiber infrastructure, especially in low-population-density regions in Spain. The company’s strategic approach was based on three fundamental principles:

1. Focusing on rural areas,
2. Implementing smart network planning,
3. Gaining support from local communities.

Adamo proved that fiber infrastructure deployment in rural areas can be economically sustainable. The company demonstrated that digital infrastructure is not limited to urban centers but can be spread across entire geographies.

These examples provide critical lessons for alternative operators in Türkiye:

1. The importance of establishing strong collaborations with local authorities,
2. The necessity of developing strategies specific to different market segments,
3. The opportunities presented by wholesale-only models.

Alternative operators have clearly demonstrated through these examples that they can contribute to national digital transformation by looking beyond narrow corporate interests.

Transformation in Regulatory Framework: Strategic Restructuring of the Telecommunications Sector

The future of the telecommunications sector will be shaped across three critical axes that extend far beyond technological infrastructure investments:

• infrastructure modernization,
• restructuring of the competitive environment, and
• transition to new business models.

This transformation represents a fundamental reimagining of the sector’s existential purpose.

Structural Limitations of Current Regulatory Approach

The Information and Communication Technologies Authority’s (BTK) “not yet regulated” stance represents one of the most significant structural barriers to dynamic transformation in electronic communication. While the Electronic Communication Law No. 5809 was fundamentally designed to encourage technological development and innovative service models, the current administrative approach operates in direct contradiction to this vision.

Strategic Approach to Regulating New Service Models

Introducing a new service in electronic communication now requires far more than a simple procedural approval process. This process must be based on a comprehensive analysis across three fundamental dimensions:

1. Legal Compatibility Analysis; The proposed service must be evaluated against objective criteria within the electronic communication definition. This analysis should encompass:

• Technical characteristics,
• Relationship with existing regulatory frameworks,
• Alignment with technological development objectives.

2. Technological Innovation Perspective; Regulatory approach must be enabling rather than restrictive. Removing bureaucratic obstacles to next-generation services will directly impact the sector’s global competitive capacity.
3. Flexible Market Dynamics Evaluation; The regulatory institution should focus on understanding and supporting emerging business models, rather than merely preserving existing market structures.

Transformation Areas and Strategic Significance

Regulatory transformation in the telecommunications sector now extends far beyond traditional service definitions. Key transformation areas include:

• Proliferation of OTT (Over-The-Top) services
• Increasing strategic role of data centers
• Development of cloud computing services
• Low Earth Orbit (LEO) satellite systems
• AI-powered telecommunications solutions

Global Competitiveness Perspective

Modern telecommunications regulations are no longer mere technical adjustments but strategic tools of national technological sovereignty and economic competition. The regulatory approach will directly shape a country’s global digital competitive strength.

The Necessity of Transformation

Regulatory transformation in the telecommunications sector is more than a choice—it is a necessity. Türkiye will either remain constrained by narrow bureaucratic approaches or become an active component of global digital transformation.

Digital Transformation and Company Perspective: Sectoral Discourse Analysis

The Problematic Corporate Perspective: CEO’s Rhetoric Analyzed

Türk Telekom CEO Ümit Önal’s recent statements provide a stark illustration of the narrow corporate mindset hindering sectoral transformation. In a notable interview, Önal characterized alternative operators’ infrastructure access demands as an “infrastructure collapse attempt,” claiming that as the primary infrastructure developer, Türk Telekom views shared access as a threat. His assertion that “internet is cheaper than water” further reveals a profoundly limited understanding of digital infrastructure’s strategic value.

Önal’s 70 Mbps speed target stands in sharp contrast to the European Union’s ambitious 2030 goal of 1 Gbps for all households, underscoring the myopic approach that constrains Turkey’s digital competitive potential. By framing infrastructure sharing as a “collapse” rather than an opportunity for collaborative development, the CEO’s rhetoric exemplifies the very regulatory and competitive barriers that this transformation seeks to dismantle.

Detailed Analysis of Statements

Infrastructure Ownership Perception

Önal’s statement about “infrastructure collapse” ignores the fundamental reality that telecommunications infrastructure is a public asset, not a corporate property. Digital infrastructure is a strategic national resource that, like highways, dams, or energy systems, should be accessible to society as a whole.

Speed and Performance Approach

The CEO’s target of 70 Mbps is woefully inadequate compared to the European Union’s 2030 goal of 1 Gbps. This narrow-minded approach directly limits Türkiye’s digital competitive capacity, reflecting a perspective that fails to understand the transformative potential of digital infrastructure.

Anti-Competitive Discourse

Characterizing alternative operators’ infrastructure access as a “collapse attempt” is an approach that directly hinders the development of competitive market dynamics. European examples clearly demonstrate that open-access and neutral infrastructure models directly contribute to technological innovation and service quality enhancement.

Economic Perspective Deficiency

Önal’s statement that “internet is cheaper than water” is a striking indicator of not understanding the economic value and strategic significance of digital infrastructure. In today’s world, high-speed, reliable internet access is a critical infrastructure component affecting the entire economy.

Reasons for Structural Transformation Need

Türk Telekom’s current approach is one of the biggest obstacles preventing the sector from realizing its true potential. Instead of narrow corporate interests, a national digital transformation vision must be embraced.

Global Competition Perspective

Digital infrastructure is no longer just a technological choice but a critical factor determining countries’ global economic competitive power. Türkiye stands at a critical juncture: it will either remain trapped in a narrow corporate perspective or develop a strategic national vision.

The examples of CityFibre and Adamo clearly show that alternative operators can be the locomotives of digital transformation. However, for this to happen, basic infrastructure providers like Türk Telekom must adopt an open, transparent, and competitive approach.

In conclusion, the Türk Telekom CEO’s statements are a striking example of how deep the structural problems in the sector have become. Digital transformation requires a national strategic vision that goes far beyond narrow corporate interests.

National Digital Infrastructure Vision and Solution Models

Türkiye’s electronic communications sector presents a situation that clearly demands comprehensive and radical transformation. Visionary and bold steps have become mandatory to solve the sector’s structural problems.

Digital transformation is no longer merely a technological choice, but a struggle for existence in global competition. Telecommunications infrastructure has become the lifeblood of modern economies. The quality of this infrastructure directly determines how countries will exist in the digital age.

First Model: Digital Türkiye Infrastructure Corporation (DİJİTAL-AŞ)

A national shared infrastructure company model emerges as the most comprehensive solution for the sector’s transformation. This model is designed as a wholesale-only operator that encompasses Türk Telekom’s fiber and copper infrastructure, Türksat’s cable infrastructure, and other operators’ fiber infrastructures, without providing service directly.

Institutional Structure Characteristics: The company’s fundamental aim is to consolidate all telecommunications infrastructures under a single roof, creating a neutral and independent operational model. The management structure will adopt a democratic model representing all stakeholders. The state, alternative operators, academia, and civil society organizations will play active roles in the company’s decision-making mechanisms.

Ownership Structure: The company’s capital structure will be strategically designed. While the state maintains a majority stake (51%) to retain control, a significant share (30%) will be allocated to alternative operators. The remaining shares (19%) will be evaluated through national asset funds, pension funds, and public offering. This structure will ensure public control while benefiting from private sector dynamism.

Business Model Principles: Inspired by CityFibre in the UK and FiberCop in Italy, the company will adopt a wholesale-only model. It will provide equal access to all service providers under fair conditions, implement transparent pricing policies, and establish strong collaborations with local governments to leverage urban transformation opportunities.

Investment Strategy: The goal will be to establish a fiber infrastructure providing at least 1 Gbps speed to all households by 2030. To achieve this, public-private partnership models, international financing sources, and EU funds will be utilized. Lessons from the Adamo example in Spain will be particularly applied to ensure fiber access in rural areas.

Second Model: Regional Collaboration Approach

In the event that the national model cannot be implemented, “TürkiyeNet Regional Collaborations” can be introduced as an alternative solution.

Regional Implementation Strategies: Fiber infrastructure collaborations will be developed with metropolitan municipalities in urban areas. Joint investment models will be created in urban transformation zones. Cooperation will be established with local authorities and development agencies in rural regions, leveraging EU funds and rural development support. Micro-scale, targeted fiber projects will be developed in housing complexes and organized industrial zones.

Critical Success Factors: Strong support from local authorities, development of flexible financing models, adherence to open access principles, and adoption of a wholesale-only model will be critically important.

Digital Transformation: Türkiye’s Manifesto of Existence

The electronic communications sector is no longer merely a technological domain, but a critical element at the core of a nation’s existential strategy. Türkiye currently stands at a historic crossroads that will determine its position in the global system: it will either be a passive consumer of the digital age or an active, transformative player in this transformation.

This choice represents far more than a simple technological selection. It is a strategic decision that will shape the country’s future vision, economic resilience, understanding of social justice, and global competitive capacity.

Digital transformation is a multi-layered struggle for existence:

1. Economic Renaissance A robust digital infrastructure is not just a technological investment, but a capacity to entirely redesign the economy. The more rapidly and inclusively Türkiye achieves this transformation, the more it can elevate its position in the global economic value chain.
2. Societal Transformation Potential Digital infrastructure is a strategic tool capable of re-weaving a nation’s social fabric. From education to healthcare, rural development to gender equality, a strong digital ecosystem possesses the potential to transform all social systems comprehensively.
3. Global Geopolitical Competition Technological sovereignty has become a more decisive geopolitical parameter than military might. Digital infrastructure is a critical element directly shaping countries’ soft power capacities in the global system.

Türkiye’s Critical Choice

Will narrow corporate interests be sustained, or will a national digital transformation vision be embraced?

Every decision made today will determine our place in tomorrow’s world system. The Türk Telekom CEO’s rhetoric of “infrastructure collapse” is a striking reflection of precisely this strategic myopia.

Digital infrastructure is not a corporate property, but the building material of the nation’s collective future.

Final Call: History is Being Written Now

Digital transformation is not an anticipated future, but an existence currently under construction. Will Türkiye be a passive consumer of the global digital system, or an innovative, transformative component?

The decision must be made now. Because history does not wait; it transforms.