Turkey's leading internet service provider raises prices by 70%

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Türk Telekom, the sole wholesale internet service provider catering to all provinces in Türkey, has implemented a 70% price hike on internet services.

The hike is the latest in a series of price increases, ranging from fuel prices to tax rates, following the elections in May where President Recep Tayyip Erdoğan secured a third term.

The company, in which the Turkey Wealth Fund, the country's sovereign wealth fund, holds the majority stake, came under scrutiny due to its tariff adjustments last year, when it increased the Data Flow Access (VAE) fee by 67%. That hike, affecting other service providers, was the first in two years.

"Mismanagement"

Füsun Sarp Nebil, an expert in telecommunications and information technology, expressed concern about the lack of transparency in the recent decision and how it might impact the telecom market as a whole.

Nebil also noted that Türkey ranks 110th in fixed broadband speed and 66th in mobile internet speed worldwide, raising questions about the value proposition of the price hike.

Adding to the discussion, she highlighted the wider implications of Türk Telekom's monopoly in the telecommunications sector. "Türk Telekom has not only raised prices for end consumers but also increased wholesale fees," she said, noting that the government has not allowed other operators to build their infrastructure despite the liberalization in 2004, leaving Türk Telekom as the sole provider. This, in turn, has enabled the company to charge other operators for using its network, resulting in a 67% increase in wholesale fees.

"Mismanagement in telecommunications persists," she said, noting the lack of a grace period for other operators to prepare for the price hike.

The Information Technologies and Communication Authority (BTK) had approved Türk Telekom's wholesale price hikes on June 20, with the new rates set to take effect from July 1. However, the announcement was only made on July 21, a month later. "They probably do this to avoid creating the impression that two increases were implemented simultaneously," said Nebil. (ZA/AÖ/VK)