Turkey’s $2.13 bn 5G Spectrum Auction to Reshape Digital Infrastructure and Operator Strategies

Turkey is gearing up for its most significant telecom milestone in a decade with the government’s decision to launch a $2.13 billion 5G spectrum auction in October 2025. The move is expected to accelerate the country’s transition to next-generation connectivity, with the first commercial 5G services projected for 2026, Reuters news report said.

Kazakhstan mobile network
Kazakhstan mobile network

The tender will open up 11 frequency packages across the 700 MHz and 3.5 GHz bands, crucial for both nationwide coverage and high-capacity urban deployment. Package values range between $50 million and $425 million, ensuring participation flexibility for operators. In addition, the government will roll over mobile licenses, currently due to expire in 2029, by requiring operators to pay 5 percent of their annual revenues.

For Turkey’s three major players — Turkcell, Turk Telekom, and Vodafone Turkey — the 5G spectrum auction represents both an opportunity and a financial challenge. Investments will not only include spectrum costs but also billions in network modernization, small-cell rollouts, and fiber backhaul expansion to unlock 5G’s full potential.

Turkcell, with strong state backing, is expected to maintain an aggressive bidding strategy, while Turk Telekom may leverage its infrastructure dominance. Vodafone Turkey, part of a global group with extensive 5G experience, could bring international best practices to gain a competitive edge.

From a national perspective, 5G is central to Turkey’s digital economy ambitions. The technology is expected to power smart manufacturing, logistics, healthcare, and connected city initiatives, aligning with the government’s broader digital transformation agenda. By following European deployment models, Turkey aims to bridge the digital divide and strengthen its competitiveness in global technology markets.

However, challenges remain. Operators will face high upfront spectrum and license renewal costs at a time when revenue growth from traditional services is slowing. To monetize 5G, they will need to create enterprise-focused solutions, edge computing partnerships, and new consumer applications beyond enhanced mobile broadband.

Turkcell is the market leader with around 38.3 million mobile subscribers as of Q1 2025. In 2024, its total subscriber base reached approximately 43.2 million, supported by growth in mobile, fixed broadband, IPTV, and other services. Turkcell is also boosting its fiber footprint, with over 6 million “pure fiber” homes passed and recent growth in fixed broadband.

Turkcell also called for extending its 2G/3G/4G licences to 2045 and has emphasized the need for bulk fibre infrastructure and financing to support its 5G ambitions Reuters news report said.

Turk Telekom has around 27.9 million mobile subscribers as of Q1 2025. It boasts an expansive 496,000 km fiber network reaching 33.5 million households, with more than half of its LTE base stations already fiber-connected. In Q2 2025 alone, Turk Telekcom added 678,000 net mobile customers, lifting the base to about 28.5 million, including a record 810,000 new postpaid subscribers. Investment spending was significant: TL 13.3 billion in Q2 and TL 21.8 billion in H1. The company is also nearing an agreement to renew its fixed-line concession — covering 80 percent of Turkey’s fiber network—for another 25 years.

Vodafone Turkey holds approximately 25.4 million subscribers (as of 2024) or 25.412 million as of Q3 2025. Vodafone Turkey has been active in network modernization, including a high-capacity optical networking trial with Nokia — for instance, achieving up to 1 Tb/s per channel and enhancing fiber capacity up to 70 Tb/s.

Baburajan Kizhakedath

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