Telecommunication Sector to Establish an Association Company for Infrastructure
Turkcell, Superonline, Vodafone, Türksat and member companies of Turkish Competitive Telco Operators Association (TELKODER) are planning to...
Telecommunication Sector to Establish an Association Company for Infrastructure
Turkcell, Superonline, Vodafone, Türksat and member companies of Turkish Competitive Telco Operators Association (TELKODER) are planning to establish a joint infrastructure company to find a solution to the fiber infrastructure problem in Turkey.
Yusuf Ata Arıak, the CEO of TELKODER, claimed in his speech at the meeting, which was held to announce the joint infrastructure company, that the biggest barrier to the telecommunication sector is the infrastructure problem and that the lack of adequacy, balance, and competition in infrastructure, which hinder its development.
Emphasizing that fixing infrastructure and fiber problems has become even more important with 4,5G being put into effect, Arıak noted:
"We have been working on delivering infrastructure and fiber to everywhere for a long time. Mr. Kaan (the General Manager of Turkcell) and Mr. Gökhan (the CEO of Vodafone) explained their opinions on the joint infrastructure after 4,5G. Then, spontaneous meetings for this matter have begun. I got involved too, and we have come a long way. Then we invited Turk Telekom too. But it was soon revealed that it's impossible for Turk Telekom to join this project at the time yet. Then, possessing valuable fiber infrastructure, Türksat joined us. We have formed 55-60 percent of the telecommunication management sector based on the common view. The joint work will have two tangible outcomes. One of them is that the idle capacity that everyone possesses but does not utilize will be shared. The other is that it will be possible to make new joint investments by sharing and reducing the burden."
Emphasizing that this partnership is important for reflecting the trust of investment that Turkey needs, Arıak stated that they set up some binding rules on the partnership; that they did not want legal or de facto monopoly; that they would achieve competition and would not assume a role that could hinder competition; that they would treat all sector shareholders equally and would not take sides; and that to achieve this, most of the executive board members of the company would be selected from independent members including the chairman.
Stating that the companies that possess infrastructure must lease it to others on reasonable terms, Arıak claimed that it did not apply in practice in Turkey even though it worked on paper because the companies that possess the infrastructure tend to keep it to themselves.
"Without the joint infrastructure company, the companies have to pay"
Yusuf Ata Arıak emphasized that establishing a joint infrastructure was crucial, and he added:
"We are talking about a project that will set an example if we pull this off. There are unsuccessful examples of it in the world, just like successful ones. We need to get consultancy services from international consultancy firms, and we are still working on it. Our technical work is going on. Even though it is impossible to give an exact amount for fiber infrastructure that Turkey will need from now on, it's expected that around 30 billion liras of investment will be necessary. Without the joint infrastructure company, the companies have to pay this money and they have to take it from the citizens. The joint infrastructure company will contribute a lot to the economy and the investments will gain speed because the expenses will be shared."
Arıak emphasized that the companies would reduce the expenses by focusing on their common goal, and the reduction of expenses would contribute to the citizens and to the economy of Turkey. Answering the reporters' questions, Arıak said: "We wanted the institution that holds fiber in the widest term to join us here, and we talked to them. Once our conditions are accepted, it is possible that Turk Telekom and other companies can join us here."
When he was asked a question about the benefits of the joint infrastructure company to the consumers, Arıak answered:
"We are forming a very powerful center of gravity. It means competition first, and then a great opportunity for the consumers as a result of this competition. It means preventing 20 billion of that 30 billion from being a burden to the citizens if we manage to make unnecessary investments practical, and share the expenses of the next investments. The consumers will benefit from it directly. There will be no unnecessary burden on the consumer."
"We do not want to keep the company enclosed; it should be open to any kind of investors"
Saying that knowledge is the only thing that increases every time it is shared, Kaan Terzioğlu, the General Manager of Turkcell, added: "If we want Turkey to achieve its 2023 goals, we need to help it access information in the fastest and cheapest way. We believe that this joint infrastructure company will help Turkey to access information faster, process it easier, and keep and secure it. And it will create a competitive and efficiency focused environment in terms of service variety for all service providers. We do not want to keep this company enclosed; it should be open to any kind of investors."
Emphasizing the importance of unity in these hard times Turkey is going through, Gökhan Öğüt, the Top Executive (CEO) of Vodafone, added: "It's a historical day for our sector but beyond that, it is a very important day for Turkey... Our will to establish a joint infrastructure company is a very important first step, and it makes Vodafone Turkey so glad and proud to be one of the architects of this step."
Expressing his belief in the digital transformation and claiming that a "gigabyte society", which grounds its roots on digital transformation, lead Turkey and the world to the best future, Öğüt noted:
"The infrastructure of this gigabyte society will be achieved through immediate, real-time, and 1 GB and faster Internet access of persons, objects, individuals, and institutions. To do this, fiber infrastructure must be established as soon as possible. That is why we come together to share our will and determination to establish the fiber infrastructure as soon as possible.
We value this joint infrastructure. We are ready to provide any kind of support to work on the feasibility of this will by independent experts around the world immediately, and to eliminate the barriers to establish the joint infrastructure company."
Expressing his belief in Turkey's potential, Öğüt noted: "We intend to continue our investments in Turkey, and what we are doing here today is one of the biggest proofs of it."
Yusuf Ata Arıak, the CEO of TELKODER, claimed in his speech at the meeting, which was held to announce the joint infrastructure company, that the biggest barrier to the telecommunication sector is the infrastructure problem and that the lack of adequacy, balance, and competition in infrastructure, which hinder its development.
Emphasizing that fixing infrastructure and fiber problems has become even more important with 4,5G being put into effect, Arıak noted:
"We have been working on delivering infrastructure and fiber to everywhere for a long time. Mr. Kaan (the General Manager of Turkcell) and Mr. Gökhan (the CEO of Vodafone) explained their opinions on the joint infrastructure after 4,5G. Then, spontaneous meetings for this matter have begun. I got involved too, and we have come a long way. Then we invited Turk Telekom too. But it was soon revealed that it's impossible for Turk Telekom to join this project at the time yet. Then, possessing valuable fiber infrastructure, Türksat joined us. We have formed 55-60 percent of the telecommunication management sector based on the common view. The joint work will have two tangible outcomes. One of them is that the idle capacity that everyone possesses but does not utilize will be shared. The other is that it will be possible to make new joint investments by sharing and reducing the burden."
Emphasizing that this partnership is important for reflecting the trust of investment that Turkey needs, Arıak stated that they set up some binding rules on the partnership; that they did not want legal or de facto monopoly; that they would achieve competition and would not assume a role that could hinder competition; that they would treat all sector shareholders equally and would not take sides; and that to achieve this, most of the executive board members of the company would be selected from independent members including the chairman.
Stating that the companies that possess infrastructure must lease it to others on reasonable terms, Arıak claimed that it did not apply in practice in Turkey even though it worked on paper because the companies that possess the infrastructure tend to keep it to themselves.
"Without the joint infrastructure company, the companies have to pay"
Yusuf Ata Arıak emphasized that establishing a joint infrastructure was crucial, and he added:
"We are talking about a project that will set an example if we pull this off. There are unsuccessful examples of it in the world, just like successful ones. We need to get consultancy services from international consultancy firms, and we are still working on it. Our technical work is going on. Even though it is impossible to give an exact amount for fiber infrastructure that Turkey will need from now on, it's expected that around 30 billion liras of investment will be necessary. Without the joint infrastructure company, the companies have to pay this money and they have to take it from the citizens. The joint infrastructure company will contribute a lot to the economy and the investments will gain speed because the expenses will be shared."
Arıak emphasized that the companies would reduce the expenses by focusing on their common goal, and the reduction of expenses would contribute to the citizens and to the economy of Turkey. Answering the reporters' questions, Arıak said: "We wanted the institution that holds fiber in the widest term to join us here, and we talked to them. Once our conditions are accepted, it is possible that Turk Telekom and other companies can join us here."
When he was asked a question about the benefits of the joint infrastructure company to the consumers, Arıak answered:
"We are forming a very powerful center of gravity. It means competition first, and then a great opportunity for the consumers as a result of this competition. It means preventing 20 billion of that 30 billion from being a burden to the citizens if we manage to make unnecessary investments practical, and share the expenses of the next investments. The consumers will benefit from it directly. There will be no unnecessary burden on the consumer."
"We do not want to keep the company enclosed; it should be open to any kind of investors"
Saying that knowledge is the only thing that increases every time it is shared, Kaan Terzioğlu, the General Manager of Turkcell, added: "If we want Turkey to achieve its 2023 goals, we need to help it access information in the fastest and cheapest way. We believe that this joint infrastructure company will help Turkey to access information faster, process it easier, and keep and secure it. And it will create a competitive and efficiency focused environment in terms of service variety for all service providers. We do not want to keep this company enclosed; it should be open to any kind of investors."
Emphasizing the importance of unity in these hard times Turkey is going through, Gökhan Öğüt, the Top Executive (CEO) of Vodafone, added: "It's a historical day for our sector but beyond that, it is a very important day for Turkey... Our will to establish a joint infrastructure company is a very important first step, and it makes Vodafone Turkey so glad and proud to be one of the architects of this step."
Expressing his belief in the digital transformation and claiming that a "gigabyte society", which grounds its roots on digital transformation, lead Turkey and the world to the best future, Öğüt noted:
"The infrastructure of this gigabyte society will be achieved through immediate, real-time, and 1 GB and faster Internet access of persons, objects, individuals, and institutions. To do this, fiber infrastructure must be established as soon as possible. That is why we come together to share our will and determination to establish the fiber infrastructure as soon as possible.
We value this joint infrastructure. We are ready to provide any kind of support to work on the feasibility of this will by independent experts around the world immediately, and to eliminate the barriers to establish the joint infrastructure company."
Expressing his belief in Turkey's potential, Öğüt noted: "We intend to continue our investments in Turkey, and what we are doing here today is one of the biggest proofs of it."