Türkiye is inching closer to launching 5G mobile communication services, as the government has set the minimum values for spectrum licenses ahead of a long-awaited tender.
Transport and Infrastructure Minister Abdulkadir Uraloğlu said preparations are in their final stage, with the auction date and details expected to be announced shortly.
"We have come to the last phase in our efforts to make 5G technologies available across the country," Uraloğlu said in a statement on Sunday.
His remarks came after a presidential decree published in the Official Gazette on Friday set the minimum fees for the frequencies to be tendered.
According to the decision, 400 MHz of spectrum in the 700 MHz and 3.5 GHz bands will be made available to mobile operators. The frequencies have been divided into 11 packages, with a total minimum auction value of $2.13 billion, excluding value-added tax (VAT).
The decree specifies that three packages in the 700 MHz band will each carry a minimum price of $425 million. Eight packages in the 3.5 GHz band will range between $50 million and $200 million, depending on bandwidth.
According to the activity reports of telecommunications companies, the authorization period for the 2G, 3G and 4.5G frequencies will expire in 2029.
"The existing authorizations of our operators have also been included within the scope of this tender. With the minimum values now determined, we will soon provide the public with further information regarding the tender date and its key factors," Uraloğlu said.
Winning operators will be required to pay the final bid amount in three equal installments, in line with procedures to specified in the tender specifications to be prepared by the Information and Communication Technologies Authority (BTK)
For the year 2029, operators will be required to pay 5% of their gross sales between April 30 and Dec. 31, 2029. For subsequent years, this payment will continue annually until the expiration date of their current authorizations, with the deadline to be determined by BTK.
Provided these payments are made, the currently allocated frequencies, numbering resources and infrastructure will be incorporated into the scope of the new authorization starting from the expiration date of the existing one. The payment terms for this amount will be defined in the tender specifications.
The country’s major telecom operators have long been preparing for the transition.
Last week, Türk Telekom said it is fully prepared for the upcoming 5G tender and rollout, citing its robust fiber infrastructure and strategic investments.
Its CEO Ümit Önal said 54% of the company's long-term evolution (LTE) base stations are already connected via fiber.
Türk Telekom owns and maintains nearly 80% of Türkiye's national fiber network through a concession agreement that is set to expire in 2026. Önal said the company is nearing the renewal of the deal.
Turkcell CEO Ali Taha Koç said the company has completed financial planning for the rollout. "A large part of our network has been modernized for the transition to 5G and the fiberization rate of our base stations has been rapidly increasing," he said.
"We have also finalized our financial planning to integrate new base stations into our network," he added.
