Türkiye's telecoms operator Türk Telekom said on Wednesday it reached a deal with Turkish authorities to extend its concession agreement for operating the landline network until 2050, and it will pay $3 billion, including tax, over 10 years for the rights.

In a statement on the Public Disclosure Platform (KAP), the company also pledged to implement a $17 billion investment plan through 2050 to support long-term strategic objectives and financial stability.

Türk Telekom will pay the Information and Communication Technologies Authority (BTK) $2.5 billion, excluding VAT, for the service rights over the next decade as part of the deal.

It will pay $500 million annually in the first two years, then $200 million each year until 2034. The final installment in 2035 will be $100 million, with all payments due on the last business day of each year, it said.

The current concession, which gives the company the right to run Türkiye's fixed-line infrastructure, had been due to expire on Feb. 28, 2026.

The extension encompasses the provision, operation, and development of fixed electronic communications infrastructure in Türkiye, as well as the marketing of wholesale and retail telecom services over these networks.

Transport and Infrastructure Minister Abdulkadir Uraloğlu said the agreement "will support continuous investment in fixed infrastructure, contributing $20 billion" to the economy.

Further details regarding the extension of the fixed services concession agreement until 2050 were announced at a Thursday's news conference attended by Türk Telekom CEO Önal.

"I'm proud to say that today is a very important day for Türk Telekom and our country. Today marks the official announcement of the extension of Türk Telekom's fixed services concession, which was set to expire in February 2026, until 2050," Önal said.

He expressed his pleasure that this process has been concluded in the best interests of Türkiye and its companies, also stating that the agreement will directly contribute $20 billion to the Turkish economy.

Önal emphasized that the new agreement will have a much greater impact on their sector, all technology-based industries, and Türkiye's digital transformation, and expressed his honor at being entrusted with this responsibility once again.

"As Türk Telekom, the founder and developer of our country's communications infrastructure, we have undertaken this privilege as a historic mission, driven by a commitment to serving our country and nation. We have always acted with the understanding that every investment Türk Telekom makes is a gain for Türkiye," he said.

Regarding fiber infrastructure and their work in this domain, he cited data from the FTTH Council report, noting that Türkiye "ranks third among 39 European countries in fiber infrastructure, ranks fourth with the highest number of fiber subscribers, and is among the five fastest-growing markets in Europe."

"Fiber infrastructure is also crucial for 5G. We have already increased the proportion of LTE base stations required for the 5G transition to 55%, exceeding the global target for 2030. Strengthened by this, we claim to be the most 5G-ready operator," he also said.

Türkiye is in the final phase of preparation for the planned launch of 5G, which is due next year.