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3G in Turkey - by sharing infrastructure?

Statements by the CEOs of both Turkcell and Turk Telecom indicate that both believe that introducing 3G into Turkey will be achieved more cheaply by the two companies sharing the costs of infrastructure.The costs will be further reduced if third 3G entrant Vodafone decides to enter into the agreement.


Turk Telecom CEO Paul Doany has stated that he favours his company joining Turkcell and Vodafone in sharing the costs of building Turkey’s 3G infrastructure. His call has met with the immediate approval of Sureyya Ciliv, head of Turkcell, Turkey’s largest mobile operator.


Introducing 3G into Turkey has been delayed in the past although it would seem that on this occasion the backdrop of recession has influenced the chief executives and led them to this new conclusion. In fact, Paul Doany’s plea extends beyond Turkcell to take in Vodafone as a third contributor to the infrastructure costs, reducing them even further.   


Of course, such cost reductions may make sense on paper but any existing deals with equipment manufacturers have to be taken into account. The companies involved here are Huawei, Ericsson, and ZTE. To date, the first of these is believed to be supplying components to two of the 3G entrants, Vodafone having declared at the end of last year that it wanted Huawei to build the infrastructure.


The situation has since become more complicated because of Turkcell’s circumstances. It selected three companies to build infrastructure as of April: Huawei, Ericsson and ZTE.

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