GSM operators' 5G transition schedule pushed to end of 2025: Cost of delay is 120 billion TL

The transition of GSM operators to 5G in Turkey has been postponed under the Medium-Term Program.

According to a report by Cumhuriyet, Minister of Transport and Infrastructure Abdulkadir Uraloğlu announced last month that the transition to 5G would take place in 2026. However, in the medium-term program (OVP) covering the years 2025-2027, we saw that the schedule for Turkey's transition to 5G has been set for the last quarter of 2025. Yet, in 2022, the then-Minister of Transport and Infrastructure Adil Karaismailoğlu had announced that the 5G tender would be held in 2023.

209 OPERATORS IN 83 COUNTRIES USE 5G

4G technology has reached its highest level globally today, with a 58 percent share of mobile subscriptions, and is preparing to give way to 5G. 209 operators in 83 countries, primarily in North America, Europe, and North East Asian countries, are using 5G. It is projected that by 2027, 5G will become the leader among mobile subscriptions globally. In Turkey, there are a total of 87 million mobile subscriptions, 93 percent of which are 4.5G subscribers. According to estimates in the "Economic and social benefits of 5G technology for Turkey, 2022" report by Vodafone and Deloitte, the delay in this area causes a loss of economic activity worth 120 billion TL (9 billion dollars) annually. Accordingly, 12 percent of the 1 trillion lira activity to be gained in the 5G technological cycle could be lost.

The report also includes the following findings:

"Falling behind in technological developments also has lasting effects on competitiveness. The delay of 5G brings with it risks such as undermining the development of every sector that needs the speed and low latency that can be achieved with 5G compared to rival countries, and reducing the competitiveness of entrepreneurs in developing areas such as the gaming sector in the startup ecosystem.

This will cause Turkey to fall into the background for foreign investors in relevant sectors and to be deprived of opportunities such as financing, technological transfer, and cooperation provided by foreign investments.

It is projected that the sales effects resulting from investment and service expenditures and productivity increases will provide a total economic activity increase of 1 trillion 47 billion TL and a GDP increase of 479 billion TL over a 15-year period."

News Source: 12punto