This document provides a summary of the ICT industry in Turkey in 3 paragraphs or less: The ICT market in Turkey was worth USD 32.1 billion in 2017, with telecommunication technologies accounting for 65% and information technologies making up 35%. There were 128,000 people employed in the ICT sector in Turkey in 2017, with 69% working in IT and 31% in telecommunications. Turkey has seen growth in the use of mobile devices like smartphones and tablets as well as broadband subscribers, while fixed-line telephone subscribers have declined. Technoparks in Turkey host over 4,987 ICT companies which generated USD 3.6 billion in exports in 2018. The largest ICT companies in Turkey include Turk Tele

1. Istanbul
November 2018
ICT Industry in Turkey

2. FMC Group prepares market snapshot reports from selected trusted sources in Turkey which
are regularly updated. These reports are brief presentations overviewing available facts &
figures on major industries in Turkey. If you need a specific research on different segments,
please contact with our Head of Market Research Department Mrs. Berna Gurleyen
(b.gurleyen@fmcgroup.com ). We would be happy to support you.

3. Contents
© 2018 Foreign Market Consulting Ltd. Sti.
A Market Page 04
B Exports Page 09
C Technoparks Page 10
D Main Companies Page 12

4. 4
• Total ICT market size is USD 32.1 bn in 2017.
• Breakdown: Telecommunication technologies/TT (65%), information technologies/IT
(35%).
• 128 thousand people are employed, 69% is in IT, 31% in TT.
A. Market
ICT market
Source: TUBISAD (Informatics Industry Association of Turkey), 2018
TT - Electronic
Communication,
USD 14 mn, 44%
TT Hardware, USD
7 mn, 21%
IT Software, USD 5
mn, 16%
IT Hardware, USD
4 mn, 14%
IT Services, USD 2
mn, 5%
ICT Market, USD mn, % Share (2017)

5. 5
• Turkish people become increasingly mobile: Upward trend in portable computers and
mobile phones vs. downward trend in desktop computers and fixed line phones.
A. Market
Usage of Devices
Availability of Devices in Households (%)
Year
Desktop
computer
Portable
computer
(Laptop,
Netbook)
Tablet
computer
Mobile phone Game console
Fixed line
telephone
Smart TV
2008 28.1 NA NA 88.1 3.9 68.4 NA
2013 30.5 31.4 6.2 93.7 5.0 37.9 7.3
2014 27.6 NA NA 96.1 5.6 34.6 12.4
2015 25.2 NA NA 96.8 5.3 29.6 20.9
2016 22.9 36.4 29.6 96.9 5.6 25.6 24.6
2017 20.3 36.7 29.7 97.8 5.5 20.2 28.5
2018 19.2 37.9 28.4 98.7 5.6 NA 32.1
Source: Turkish Statistical Institute, 2018

6. 6
A. Market
Broadband Subscribers
Source: BTK (Information Technologies and Communication Authority), 2018
• The growth has been fastest in mobile segment:
CAGR (2012-2017):
• Total: 20.0%
• Fixed: 8.5%
• Mobile: 23.6%
6.0
8.9
14.3
22.3
27.6
32.6
41.3
48.6
62.2
68.8
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of Broadband Subscribers
Fixed Mobile Total
mn

7. 7
• Total number of mobile subscribers is 77.8 mn in 2017 Q4.
• CAGR (2012-2017): 2.8% (Total)
• 4.5G is available since April 1, 2016, rapidly replacing 3G.
A. Market
Mobile Subscribers
Source: BTK, 2018
65.8
55.7
42.4
33.9
25.9
20.4
13.6
9.4
4.5 3
7.1
19.4
31.4
41.8 49.3
58.3 64.3
18.9
10.2
51.7
64.6
65.8
62.8 61.8
65.3
67.7
69.7
71.9 73.7 75.1
77.8
0
10
20
30
40
50
60
70
80
90
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of Mobile Subscribers
2G 3G 4.5 G Total
mn

8. 8
• As the number of mobile subscribers increases, the number of fixed-line telephone
subscribers decreases.
• CAGR (2012-2017): - 4.0%
A. Market
Fixed-line Telephone Subscribers
Source: BTK, 2018
17.5
16.5 16.2
15.2
13.9 13.6
12.5
11.5
11.1 11.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Number of Fixed-line Telephone Subscribersmn

9. 9
• USD 1.3 bn exports in 2017, 26% higher than 2016.
• Main destinations of exports (2017): The EU (63%), the Middle East and Africa
(19%), Other (18%).
B. Exports
Exports
Source: TUBISAD, 2018
Information
Technologies -
Software, TRY 898
mn, 70%
Communication
Technologies -
Hardware, TRY 173
mn, 13%
Information
Technologies -
Hardware, TRY 107
mn, 8%
Information
Technologies -
Service, TRY 111 mn,
9%
ICT Exports, 2017
TRY mn, % Share

10. 10
• As of Aug. 2018:
• 81 technoparks, 57 are active
• 4,987 companies in total, 281 are foreign capital
• 49,004 employees in total, 39,757 are R&D staff
• 28,983 projects have been completed and 8,387 are in-progress
• TRY 61 bn* sales volume, USD 3.6 bn exports volume
C. Technoparks
Statistics
* USD 1 = TRY 5.74 as of Aug. 2018
Source: Ministry of Industry and Technology, 2018
Software, 37%
Computer and
communication
technologies, 17%Electronics, 8%
Machinery&
equipment
production, 6%
Energy, 4%
Other, 28%
Distribution of Companies in Technoparks by Segments

11. 11
• By the end of 2023:
• Earnings derived from software development, design and R&D activities are exempt from
income and corporate taxes.
• Sales of application software produced exclusively in technoparks are exempt from VAT.
• Wages of R&D, design and support personnel are exempt from all taxes.
• 50% of the employer’s share of the social security premium will be paid by the government.
• Investments required for the production of the technological products generated as a
result of R&D or design projects conducted in the zone, can be carried out within the
zone, if eligible.
• Customs duty exemption for imported products and stamp duty exemption for related
documents within the scope of software development, R&D, and design projects.
C. Technoparks
Advantages
Source: The Presidency of the Republic of Turkey Investment Office, 2018

12. 12
• Turkcell is the main mobile network operator.
• TTNet is the leading internet service provider.
D. Main Companies
Main Companies: MNOs & ISPs
Source: BTK, 2018
Turkcell,
43.7%
Vodafone,
31.1%
Avea,
25.2%
Market Shares of Main MNOs, 2017 Q4 (By
Number of Subscribers)
TTNet
67.3%
Superonline
19.3%
Vodafone
Net
5.8%
Dogan TV
Digital
3.0%
Turknet
1.6%
Other
3.0%
Market Shares of Main ISPs, 2017 Q4 (By
Number of Subscribers)

13. 13
D. Main Companies
Largest ICT Companies
Company Name Net Sales, TRY mn, 2017 Business Field
Turk Telekomunikasyon 18,139.5 Telecommunication
Turkcell Iletisim 17,026.4 Mobile telecommunication
Vodafone 12,255.0 Mobile telecommunication
Aselsan 5,360.2 Defense
Indeks Bilgisayar 4,719.6 ICT distributor
Teknosa 3,397.8 ICT retail
Brightstar Telekom 2,572.9 ICT distributor
Penta Teknoloji 2,505.5 ICT distributor
Genpa Telekomunikasyon 2,490.0 ICT distributor
STM Savunma Teknolojileri 1,913.1 Defense
Arena Bilgisayar 1,823.7 ICT distributor
Mobiltel Iletisim 1,773.5 ICT distributor
Bilkom 1,727.4 ICT distributor
Datagate Bilgisayar 1,583.0 ICT distributor
Mobimark Iletisim 1,372.3 ICT distributor
HP Turkiye 1,353.9 IT company
Armada Bilgisayar 1,337.0 ICT distributor
Lenovo 1,174.4 ICT company
Netas 1,122.3 ICT company
Koc Sistem 980.8 ICT company
*EUR 1 = TRY 4.120 in 2017.
Source: Capital magazine, August 2018

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