Current Situation and Future of Information Tech. in Turkey Yavuz Göktaylar https://tr.linkedin.com/pub/yavuz-göktaylar/4a/a50/b32 August, 2015 Ankara, Turkey Information and Communication Technologies Authority (ICTA) Distinguished Participants, It is a great privilege and honour for me to address such a distinguished audience here about Turkey’s ICT Policies. During my presentation, I will give some information about communications sector in Turkey and I will discuss the importance of ICT in transportation. At this point I will mention about our main projects.

Agenda A look on Turkey Turkish ICT Market Growth Prospects Conclusion ICT Authority of Turkey has been established in order to make regulations, grant licenses, inspect the sector and perform its reconciling function in the electronic communication sector. However, policy making and strategy setting is performed by the Ministry of Transportation, Maritime Affairs and Communications. There are 890 employees in the Authority,almost half of which are professional personnel. The Authority’s sources of income are license fees, contribution fees from operators based on annual income and wireless usage fees.

A look on Turkey Distinguished Participants, It is a great privilege and honour for me to address such a distinguished audience here about Turkey’s ICT Policies. During my presentation, I will give some information about communications sector in Turkey and I will discuss the importance of ICT in transportation. At this point I will mention about our main projects.

Turkey - I Middle income country with large pool of potential customers with median age of 30.1 Source: TurkStat, Population Projections, 2013-2075

3.7 percent average yearly growth in real GDP between 1998-2014 Turkey - II 3.7 percent average yearly growth in real GDP between 1998-2014 Source: TurkStat

Ability to access neighboring countries’ markets Turkey - III Ability to access neighboring countries’ markets

Open markets for competition and foreign direct investment Turkey - IV Open markets for competition and foreign direct investment

Turkey - V Source:TurkStat, Research and Development Activities Survey

Turkey has 59 TDZs, 44 are active and 15 are under construction Turkey - VI Turkey has 59 TDZs, 44 are active and 15 are under construction

Turkish ICT Market Distinguished Participants, It is a great privilege and honour for me to address such a distinguished audience here about Turkey’s ICT Policies. During my presentation, I will give some information about communications sector in Turkey and I will discuss the importance of ICT in transportation. At this point I will mention about our main projects.

Based on net sales, the largest ICT firms in Turkey In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations. Source: Bilişim500

Market Size Approximately 25.3 billion USD 8.4 percent decline from previous year in USD Note: Data for forecasting are obtained from TÜBİSAD

Market Components - I IT Market is projected to grow faster than Communications Technology Market Note: Data for forecasting are obtained from TÜBİSAD

Market Components - II Shares of IT Software, Communications Hardware & IT Services are projected to rise Note: Data for forecasting are obtained from TÜBİSAD

Employment Note: Data for forecasting are obtained from TÜBİSAD

≈ 2.5 billion USD investment by comm. services firms Source: BTK

Growth Prospects Distinguished Participants, It is a great privilege and honour for me to address such a distinguished audience here about Turkey’s ICT Policies. During my presentation, I will give some information about communications sector in Turkey and I will discuss the importance of ICT in transportation. At this point I will mention about our main projects.

Market Leaders – Com. Services In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations. In total, there are 671 firms with 1103 authorizations (August, 2015)

Market Leaders – Com. Hardware Brands Distributers In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations.

Fixed Broadband Increasing trend Source: BTK

Internet Usage - Fixed In 4 years, internet usage of fixed broadband will increase almost three times Source: BTK

Mobile Broadband Increasing trend Source: BTK

Broadband Usage In 4 years, internet usage of mobile broadband will increase almost four times Source: BTK

Mobile Telephone Increasing trend Source: BTK

Spectrum Auction: IMT Advanced - I Growth opportunities are mostly exhausted Except for fibre, fixed broadband seems to be mature There is migration pattern towards fibre from DSL 3G is getting closer to saturation point Intense rivalry: Stagnant and even declining ARPU at mobile Firms are searching new profitable areas Machine to Machine subscriptions Promote more heavy broadband/data usage particularly at mobile side that implies introduction of 4G; fibre at fixed side Spectrum Auction with reserve price of almost 2.7 billion Euro for 390.4 MHz at 800, 900, 1800, 2100 and 2600 MHz. In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations.

Spectrum Auction: IMT Advanced- II Result: Total bid of 3 existing network operators is almost equal to 3.9 billions Euros. > 30 billions USD investment in the next 13 years on networks Half of this amount is expected to be supplied by domestically developed technology and production ULAK Project: Design and development of indigenous LTE base stations Developers: Aselsan, Netaş and Argela New services will be provided on April, 2016. A great stimulus for expansion of ICT market in Turkey In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations.

Diffusion: IMT Advanced 2025: 83 millions subs., 97% M2M ignored In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations.

Fixed Telephone Declining trend Source: BTK

Comm. Hardware – Trade Balance Turkey is net importer and we have a challenge to balance it Source: OECD, ITCS database

Comm. Hardware – Smartphones 74 percent increase is projected in connections with smartphones Source: GSMA Intelligence

Market Leaders – IT Hardware In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations. Fragmented with many global and local players

Market Leaders – IT Software In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations. Fragmented with many global and local players

Households Penetration - I Portable computers and Smart TV penetration rates have increasing trend Source: TurkStat, Information and Communication Technology (ICT) Usage Survey in Households and Individuals, 2004-2015

Households Penetration - II Mobile phone penetration rate has slightly increasing trend Source: TurkStat, Information and Communication Technology (ICT) Usage Survey in Households and Individuals, 2004-2015

ICT Usage in Enterprises >= 90 percent ICT usage Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)

ICT Usage in Households and Individuals - I Steady increase in ICT usage Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)

ICT Usage in Households and Individuals - II Positive trend Source: TurkStat, Use of Information and Communication Technology (ICT) in Enterprises, Use of Information and Communication Technology (ICT) in Households and Individuals (16-74)

Conclusion Young population Relatively large internal market Competitive industries and open to FDI …etc. Still emerging economy with challenges In November 2008, Electronic Communications Law has been published. After the publication of law, we made significant changes in more than 50 secondary legislations.

Current Situation and Future of Information Tech. in Turkey Yavuz Göktaylar https://tr.linkedin.com/pub/yavuz-göktaylar/4a/a50/b32 August, 2015 Ankara, Turkey Information and Communication Technologies Authority (ICTA) Distinguished Participants, It is a great privilege and honour for me to address such a distinguished audience here about Turkey’s ICT Policies. During my presentation, I will give some information about communications sector in Turkey and I will discuss the importance of ICT in transportation. At this point I will mention about our main projects.