Setting goals with national broadband plans
Turkey’s National Broadband Strategy and Action Plan helps increase the rollout of broadband in the country.
Country:
TurkeyRegion:
AsiaPolicy area:
Broadband PlanningStakeholder:
GovernmentContext
Liberalisation in the Turkish telecom sector began with a concession agreement signed with two GSM operators in 1998. The Telecommunications Authority, responsible for regulating and monitoring the telecommunications market, was founded in 2000; it was renamed the Information and Communications Technologies Authority (ICTA) in 2008 by the adoption of the Electronic Communication Act.
All these reforms had important economic implications on the internet and broadband market. The number of xDSL subscribers increased 32%, from 5.9 million in 2008 to 7.8 million in 2016. While there were no fibre broadband subscribers in 2008, there were more than 1.9 million fibre subscribers in 2016. Similarly, the number of cable internet subscribers increased from 67,000 in 2008 to 737,000 in 2016. More importantly, the number of broadband internet subscribers increased from 6 million in 2008 to 62.2 million in 2016, in large part due to greater 3G penetration.
Despite the above, the telecommunications sector had important challenges that needed to be properly addressed. The sector remained largely stagnant, growing from 14.98 billion Turkish Liras (TL) in 2003 to 15.55 billion in 2016 (real growth inflation-adjusted). In 2016, Turkey had one of the lowest fixed broadband penetration rates among OECD countries, with a penetration rate of just 13.2%, compared to OECD average in 2016 of 29.3%. Additionally, the share of the telecommunications sector as a percentage of GDP decreased from 3.3% in 2003 to 2.4% in 2016. All these indicators show that the sector has experienced a long-term challenge stemming from several factors, including a lack of competition in the telecommunications market, the rising dominance of mobile over fixed connectivity, and the emergence of over-the-top (OTT) services.
The government saw an opportunity to reset its agenda with a new national broadband plan and to accelerate internet connectivity and affordability for users.
Turkey has made significant achievements in the three years since the adoption of its national broadband plan. The price of 1GB of mobile data has continued to drop as a percentage of average monthly income — in 2016, 1GB cost 1.2% of monthly income; today, the same data costs less than 0.5% of monthly income.
The country has also seen great progress in terms of access — fixed broadband users increased from 10.5 million in 2016 to 14.2 million in 2019; mobile internet subscribers grew from 43.6% in 2016 to 53.3% in 2019. The internet usage rate already surpassed the 70% goal set for 2020, increasing from 61.2% in 2016 to 75.3% in 2019. Importantly, while internet usage rate for men increased 16% in the same period, internet usage rate for women increased from 33%, helping to close the digital gender gap in the country.
This experience matches with overall analysis from the International Telecommunication Union (ITU), which notes that countries with a national broadband plan have, on average, 2.5% higher fixed broadband penetration than countries without a plan. On the mobile side, the impact of a plan is even greater — countries with a national broadband plan have, on average, 7.4% higher mobile broadband penetration than countries without a plan.
Despite the remarkable increase in internet usage rate in Turkey, it is not clear that it has fully bridged the country’s urban-rural digital divide. While the internet usage rate in Istanbul — Turkey’s largest city with a population of 15.5 million people — increased from 71.8% in 2016 to 86.6% in 2019, internet usage rate in South East Anatolia region — one of the country’s most rural regions — increased from 48.5% in 2016 to only 58.4% in 2019. Focusing more on broadband investment in rural regions of the country can help address the urban-rural digital divide, and can also help to mitigate the chronic income inequality that accompanies the urban-rural divide. Inclusive broadband policy-making can help continue this progress.
Policy Action
Turkey adopted its National Broadband Strategy and Action Plan (NBSAP) for the period of 2017-2020, after a long public consultation process. The draft had been prepared by the Ministry of Infrastructure and Transportation and other stakeholders, including network operators, telecommunications associations, relevant public authorities, and academia, who were invited to participate in the public consultation process. The Ministry took into account the European Union’s broadband goals for 2020 and 2025, the Turkish government’s own Development Plan and Government Programme, along with the goals set by the Transportation, Maritime Affairs and Communications Forum. The plan, which was published in the Official Gazette in 2017, set outs basic principles:
- Improve nationwide broadband infrastructure;
- Reach nationwide penetration of fibre access;
- Improve broadband connection capacity and speed;
- Develop a competitive and market-oriented sector; and
- Increase the demand for broadband internet services.
|
Broadband Goals within Turkey’s National Broadband Plan |
||
|
Goal |
By 2020 |
By 2023 |
|
Fixed Broadband Penetration |
20% |
30% |
|
Mobile Broadband Penetration |
80% |
100% |
|
Internet Use |
70% |
80% |
|
Fibre Internet Subscribers |
5mn |
10mn |
|
Households with Broadband ≥100Mbit/s |
50% |
100% |
|
Households with Broadband ≥1Gbit/s |
0% |
20% |
To reach these goals, the plan lays out 25 action items under three strategic areas. Its strategic goals are based around generating both supply and demand for broadband services. Actions to generate demand for broadband services cover several measures, such as mitigating taxes and other financial burdens faced by the operators and consumers, incentivising the creation of Turkish content, and facilitating access to broadband services for persons with disabilities and persons who need social assistance. Actions to generate supply for broadband services include adopting new policies and regulations to accelerate broadband investments and improve broadband infrastructure, such as revisions of rights of way, the promotion of infrastructure sharing regulations, and the creation of financial support models in regions where it is not financially feasible to create broadband infrastructure.
In addition, the plan aims to facilitate its goals by decreasing tariffs for end-users, seeing this as a mechanism that requires both supply-side and demand-side interventions.
The plan maps out the goals for the sector, sets out responsibilities for the Ministry, the regulator, and other organisations contributing to the work, and establishes which actions will be taken by which organisation, with a start and an end date for each Action Item. The plan also established a Broadband Strategy Monitoring Board to periodically monitor the plan’s progress.
Results & Insight
Turkey has made significant achievements in the three years since the adoption of its national broadband plan. The price of 1GB of mobile data has continued to drop as a percentage of average monthly income — in 2016, 1GB cost 1.2% of monthly income; today, the same data costs less than 0.5% of monthly income.
The country has also seen great progress in terms of access — fixed broadband users increased from 10.5 million in 2016 to 14.2 million in 2019; mobile internet subscribers grew from 43.6% in 2016 to 53.3% in 2019. The internet usage rate already surpassed the 70% goal set for 2020, increasing from 61.2% in 2016 to 75.3% in 2019. Importantly, while internet usage rate for men increased 16% in the same period, internet usage rate for women increased from 33%, helping to close the digital gender gap in the country.
This experience matches with overall analysis from the International Telecommunication Union (ITU), which notes that countries with a national broadband plan have, on average, 2.5% higher fixed broadband penetration than countries without a plan. On the mobile side, the impact of a plan is even greater — countries with a national broadband plan have, on average, 7.4% higher mobile broadband penetration than countries without a plan.
Despite the remarkable increase in internet usage rate in Turkey, it is not clear that it has fully bridged the country’s urban-rural digital divide. While the internet usage rate in Istanbul — Turkey’s largest city with a population of 15.5 million people — increased from 71.8% in 2016 to 86.6% in 2019, internet usage rate in South East Anatolia region — one of the country’s most rural regions — increased from 48.5% in 2016 to only 58.4% in 2019. Focusing more on broadband investment in rural regions of the country can help address the urban-rural digital divide, and can also help to mitigate the chronic income inequality that accompanies the urban-rural divide. Inclusive broadband policy-making can help continue this progress.
Full Story
Liberalisation in the Turkish telecom sector began with a concession agreement signed with two GSM operators in 1998. The Telecommunications Authority, responsible for regulating and monitoring the telecommunications market, was founded in 2000; it was renamed the Information and Communications Technologies Authority (ICTA) in 2008 by the adoption of the Electronic Communication Act.
All these reforms had important economic implications on the internet and broadband market. The number of xDSL subscribers increased 32%, from 5.9 million in 2008 to 7.8 million in 2016. While there were no fibre broadband subscribers in 2008, there were more than 1.9 million fibre subscribers in 2016. Similarly, the number of cable internet subscribers increased from 67,000 in 2008 to 737,000 in 2016. More importantly, the number of broadband internet subscribers increased from 6 million in 2008 to 62.2 million in 2016, in large part due to greater 3G penetration.
Despite the above, the telecommunications sector had important challenges that needed to be properly addressed. The sector remained largely stagnant, growing from 14.98 billion Turkish Liras (TL) in 2003 to 15.55 billion in 2016 (real growth inflation-adjusted). In 2016, Turkey had one of the lowest fixed broadband penetration rates among OECD countries, with a penetration rate of just 13.2%, compared to OECD average in 2016 of 29.3%. Additionally, the share of the telecommunications sector as a percentage of GDP decreased from 3.3% in 2003 to 2.4% in 2016. All these indicators show that the sector has experienced a long-term challenge stemming from several factors, including a lack of competition in the telecommunications market, the rising dominance of mobile over fixed connectivity, and the emergence of over-the-top (OTT) services.
The government saw an opportunity to reset its agenda with a new national broadband plan and to accelerate internet connectivity and affordability for users.
Turkey adopted its National Broadband Strategy and Action Plan (NBSAP) for the period of 2017-2020, after a long public consultation process. The draft had been prepared by the Ministry of Infrastructure and Transportation and other stakeholders, including network operators, telecommunications associations, relevant public authorities, and academia, who were invited to participate in the public consultation process. The Ministry took into account the European Union’s broadband goals for 2020 and 2025, the Turkish government’s own Development Plan and Government Programme, along with the goals set by the Transportation, Maritime Affairs and Communications Forum. The plan, which was published in the Official Gazette in 2017, set outs basic principles:
- Improve nationwide broadband infrastructure;
- Reach nationwide penetration of fibre access;
- Improve broadband connection capacity and speed;
- Develop a competitive and market-oriented sector; and
- Increase the demand for broadband internet services.
|
Broadband Goals within Turkey’s National Broadband Plan |
||
|
Goal |
By 2020 |
By 2023 |
|
Fixed Broadband Penetration |
20% |
30% |
|
Mobile Broadband Penetration |
80% |
100% |
|
Internet Use |
70% |
80% |
|
Fibre Internet Subscribers |
5mn |
10mn |
|
Households with Broadband ≥100Mbit/s |
50% |
100% |
|
Households with Broadband ≥1Gbit/s |
0% |
20% |
To reach these goals, the plan lays out 25 action items under three strategic areas. Its strategic goals are based around generating both supply and demand for broadband services. Actions to generate demand for broadband services cover several measures, such as mitigating taxes and other financial burdens faced by the operators and consumers, incentivising the creation of Turkish content, and facilitating access to broadband services for persons with disabilities and persons who need social assistance. Actions to generate supply for broadband services include adopting new policies and regulations to accelerate broadband investments and improve broadband infrastructure, such as revisions of rights of way, the promotion of infrastructure sharing regulations, and the creation of financial support models in regions where it is not financially feasible to create broadband infrastructure.
In addition, the plan aims to facilitate its goals by decreasing tariffs for end-users, seeing this as a mechanism that requires both supply-side and demand-side interventions.
The plan maps out the goals for the sector, sets out responsibilities for the Ministry, the regulator, and other organisations contributing to the work, and establishes which actions will be taken by which organisation, with a start and an end date for each Action Item. The plan also established a Broadband Strategy Monitoring Board to periodically monitor the plan’s progress.