Türk Telekom Secures 24-Year Concession Extension, Pledges $17 Billion Investment in Turkey

Türk Telekom has secured an extension of its fixed-line infrastructure concession agreement in Turkey until 2050, committing to invest $17 billion in enhancing the country's digital infrastructure, including fiber networks, data centers, cloud services, cybersecurity, and artificial intelligence. The company will pay a $3 billion concession fee to the government over 10 years starting in 2026, with payments structured from $500 million annually in the first two years to $100 million in 2035. This agreement aims to increase fiber access from 34 million to 37 million homes and grow subscribers to 17 million by 2030, while boosting internet speeds sevenfold. Despite the long-term strategic benefits and positioning Turkey for technological advancement, investors reacted negatively, causing Türk Telekom’s shares to drop due to concerns over near-term capital expenditures and profitability. The deal is viewed as a critical step toward Turkey's economic and technological independence, with anticipated regulatory developments and a forthcoming 5G license auction potentially influencing the telecom sector further. Government ownership stakes in Türk Telekom and official endorsements underline the importance of this deal for Turkey's digital future.