Türk Telekom Secures 24-Year Concession Extension for $2.5 Billion, Pledges $17 Billion Investment
In a defining move for the sector, Türk Telekom has finalized a 24-year extension of its fixed-line concession, securing its mandate through 2050. The agreement carries a price of $3 billion payable to the state. However, the strategic core of the deal is a binding commitment: a massive $17 billion investment plan to be deployed across the national infrastructure.
Türk Telekomünikasyon A.Ş. has secured a 24-year extension of its fixed-line infrastructure concession agreement, a strategic move that solidifies its market leadership and commits the company to a $17 billion long-term investment plan. The agreement with Turkey’s Information and Communication Technologies Authority (BTK) extends the company’s rights until February 28, 2050.
In a regulatory filing to the Public Disclosure Platform (KAP), the company announced it will pay a concession fee of $2.5 billion, plus $500 million in Value Added Tax (VAT), bringing the total consideration to $3 billion.
The deal resolves a key uncertainty that has been closely watched by the market, particularly amid ongoing discussions about Turkey’s 5G spectrum auction. The existing concession was set to expire on February 28, 2026. Under the terms of the agreement, regulatory approval for an extension was required at least 180 days prior to the expiration date.
The payment for the concession fee is structured over a ten-year period, beginning in 2026. The schedule is as follows:
- $500 million in 2026 and 2027, respectively.
- $200 million annually from 2028 through 2034.
- A final payment of $100 million in 2035.
Crucially, the agreement includes a commitment from Türk Telekom to execute a $17 billion investment plan by 2050. This investment is aimed at upgrading and expanding Turkey’s fixed communication infrastructure and will also target high-growth areas such as innovative technology and digital services.
The scope of the renewed concession is comprehensive, covering the provision, operation, and development of fixed electronic communication infrastructure. It also includes the marketing of all wholesale and retail telecommunication services, in addition to cybersecurity services, digital product development, and the deployment of new infrastructures in line with technological advancements.
“We believe that the Concession Agreement will strengthen our leadership in fixed infrastructure investments and fixed telecom services in Turkey and make a significant contribution to our long-term value creation potential,” the company stated in its official announcement.
Further details will be made available in an investor presentation scheduled for release on August 28, 2025.
