31.8.2015
On August 26, 2015, the minutes of the tender commission regarding the IMT-Advanced Authorization Tender conducted by the Information Technologies and Communication Authority in Ankara were approved by the Authority. The Authority's decision approving the tender was notified to the executives of the three winning operators, Turkcell, Avea, and Vodafone, at a ceremony held in Istanbul by Dr. Ömer Fatih Sayan, President of the Information Technologies and Communication Authority.
BTK President Dr. Ömer Fatih Sayan said the following in his speech at the ceremony:
“The tender for what is known to the public as 4.5G, representing a new dimension in mobile communications, was held in Ankara on August 26, 2015. In the tender, a gentlemanly, fair competition unfolded between Turkey's three mobile operators, Turkcell, Avea, and Vodafone, in an almost neck-and-neck race.
As BTK, we launched the tender with an estimated price of 2.3 Billion Euros for 390.4 MHz of frequencies, and for 365.4 MHz of frequencies, a bid of 3 Billion 359 Million Euros was submitted, reaching approximately 3 Billion 960 Million Euros including VAT. This tender is not only the largest of the last ten years in the sector but also the highest amount achieved after the privatization price of Türk Telekom's state shares.
Turkcell bid a total of 1,915,682,896 Euros including VAT across 8 packages, Avea a total of 1,126,520,159 Euros across 5 packages, and Vodafone a total of 918,009,862 Euros for 5 packages.
When expressed in Turkish Lira, the value reached in the tender amounted to 13.2 Billion TL. For these frequencies, which have largely remained unused until today, the three operators will pay 2.6 million TL per day for 14 years, thereby reaching 1.5 times the estimated price.
Immediately after the August 26 tender, the tender commission convened, prepared the decision minutes, and submitted them to the Information Technologies and Communication Authority, as the tender authority.
Our Authority, in its meeting held the day after the tender on Thursday, August 27, decided to approve the tender decision minutes related to the IMT Authorization Tender.
I want to emphasize here that this tender was conducted entirely under competitive conditions and with transparency principles, in full view of the entire public. The tender was broadcast live worldwide by the Information Technologies and Communication Authority.
In the subsequent process, authorization certificates valid until April 30, 2029, will be issued to the winning operators after they make the necessary payments for the tender price. Additionally, necessary amendments will be made to the 2G and 3G concession agreements as required by the specification.
Starting from the notification of our Authority's decision, i.e., from today, the operators will notify us within 10 business days on how they will make the payment. In the following process, invitations will be sent to the winning operators to sign the contracts. After the contracts are signed, the authorization certificates will be notified to the operators upon completion of the necessary payments for the tender price.
Starting from April 1, 2016, we will introduce Turkey to the 4.5G technology, known to the public, with which we will use the internet at least 10 times faster than the current speed. Here, it's not just win-win, but a win-win-win formula we can call 3K. The operators will benefit in terms of investment costs, the state in terms of tender revenue and subsequent tax revenues, and consumers in terms of obtaining higher quality service more affordably. In short, Turkey is the winner here.
I wish this new technology, which will propel Turkey to a new era, to be auspicious for our country and nation. As policymakers, I thank our Ministry of Transport, Maritime Affairs and Communication and our Minister. I thank the members of the Information Technologies and Communication Authority, the tender commission, and all my colleagues at the Information Technologies and Communication Authority who contributed to the successful execution of the tender.
In line with our country's 2023 vision, particularly the vision outlined by our President and closely followed by our Prime Minister, the designation of information and communication technologies as a strategic sector, along with increasing local content ratios, R&D obligations, and enhanced coverage obligations, the outcome we have achieved today is a great success. Praise be to God. Thus, we have successfully completed the second phase of our tender.
Following his speech, BTK President Dr. Ömer Fatih Sayan notified the Authority's decision to Turkcell Deputy General Manager İlker Kuruöz, Avea CEO Erkan Akdemir, and Vodafone Executive Board Vice President Hasan Süel.