McBDC Business Development & Consultancy Services Co.Ltd 1

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1 2012 McBDC Business Development & Consultancy Services Co.Ltd Information and Communication Technology ( ICT ) in Turkey Dec, 2012 McBDC Business Development & Consultancy Services Co.Ltd 1

CONTENT Market Revival.......... 3 Information Technology........ 4 Communıcatıons Technology...... 5 Turkey in numbers..... 6 CeBit Eurasia Show........ 8 Investing in Europe s Fastest-Growing Economy.

2 CONTENT Market Revival Information Technology Communıcatıons Technology Turkey in numbers CeBit Eurasia Show Investing in Europe s Fastest-Growing Economy... 8 Bibliography Acknowledgements McBDC is a business development company and strategic managerial consulting outsourcing provider that specializes in assembling and managing teams of highly skilled advisors who will augment your in-house adding value resources by their business models, strategies and plans worldwide. McBDC Business Development & Consultancy Services Co.Ltd 2

3 Market Revival Turkey s use of ICT is growing rapidly According to the report of TUBISAD (Informatics Industry Association), Turkey s growth rate over the past 50 years is 4,5%, between the years the growth rate is 6,5%. In order to achieve the goal of 2023 the growth should be 8,5%. For this growth rate ICT sector has the major share in the market. Productivity of ICT in Turkey is four times bigger than productivity of the private sector. Turkey s information and communication technologies (ICT) market reached a size of $27.3 billion in 2010, an increase of 3.8% from The fact is Turkey s utilization of new information and communication technologies is rapidly growing, like its economy generally, albeit from a low base compared with other OECD countries. This growth creates opportunities to make use of new approaches, such as cloud computing and advanced mobile applications. The right conditions, however, will need to be met and there is much to do in Turkey, to prepare the ground for effective, rapid up-take. The first of these will be a wellfunctioning market for ICT goods and services, with congenial conditions on both the supply and the demand sides. As MCBDC, since our goal is to identify the most attractive investment path in Turkey, the information and communications technology (ICT) sector is probably the foremost candidate. ICT Sector closes the year 2012 with the volume of 40 Billion Dollars. It is expected to reach 160 Billion Dollars according to the 2023 targets of Turkey. McBDC Business Development & Consultancy Services Co.Ltd 3

4 Information Technology As we all know Information Technology (IT) is the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. Today, if there was no technology and innovation, competing and surviving would be impossible in business life. Picture 1: Worldwide IT spending Forecast Turkey has one of the fastest growing IT markets of the world. The IT market is dominated by hardware sales, with over 50% of the market. There has been a remarkable increase in notebook sales in recent years due to the high interest in use of wireless internet, and third generation telecommunications (3G) services and sustained growth of the economy. The population segment ages 15 to 44 offers a high potential in terms of consumption of technology products and accessories. McBDC Business Development & Consultancy Services Co.Ltd 4

Turkey s IT equipment manufacturing capability is modest and software is largely imported. Local manufacturing activity is limited to assembly.

5 Turkey s IT equipment manufacturing capability is modest and software is largely imported. Local manufacturing activity is limited to assembly. The current share of software in total market is 15%, which is far below worldwide averages. The IT sector views software as its strategic growth segment for exports and, Turkish software companies have started to direct their expertise to exports, to almost 90 countries. Turkey Western Europe Hardware Software Service Picture 2: indorsement shares Communicatıons Technology We are living in a world which 75% of the population owns a mobile phone. It is expected 2,2 billions of people to use smart phones and tablets next year. Turkey is the only country which has the most expansive coverage area in the world. The mobile sector has grown dramatically in the past decade. The number of mobile phone subscribers, which stood at 15.1 million in 2000, raised to 61.8 million in McBDC Business Development & Consultancy Services Co.Ltd 5

6 Picture 3: Turkey s GSM Market On January 1, 2005, authorities lifted Türk Telekom s monopoly on telephony. Türk Telekom itself was partially privatized at the end of 2005 through sale of 55% shares to Oger Telecoms, owned by the family of the slain former Lebanese Prime Minister Rafiq Al-Hariri, for $6.5 billion. Now Türk Telekom owns 55.8% of the shares, where as The Turkish government owns 31.7% and the remaining 12.5% is floated in the Istanbul Stock Exchange (ISE). Key players, which merged with the world s leading mobile operators, are now closely watching the competition and appraising the quality of their services. With the entry of giant global players, the Turkish market is expected to continue to grow through introduction of new services and products. Turkey in Numbers There are 14 millions of land-line users in Turkey. The number of broad-band internet users has reached 20 millions which trebled in 4 years, and the half of this number is counted as mobile internet users. There are 68 millions of users in mobile market. McBDC Business Development & Consultancy Services Co.Ltd 6

3G subscribers are 40,3 million in number. Turkey has reached to the top of the europen list in the mobile communication. Fiber substructure has reached 200.000 km (approximately125000 miles) and 122.

7 3G subscribers are 40,3 million in number. Turkey has reached to the top of the europen list in the mobile communication. Fiber substructure has reached km (approximately miles) and km (approximately miles) of this, counts for backbone. Hardware market reached 5 billion dollars in size, software and service markets reached 2.3Billion Dollars in size. Export in IT is million dollars in size. Picture 4: Turkey s Top ICT Companies McBDC Business Development & Consultancy Services Co.Ltd 7

8 CeBit Eurasia Show Once more, McBDC was at the CeBit Eurasia, which is the world's best known, most successful trade show brand. CeBIT is the world's largest trade fair showcasing digital IT and telecommunications solutions for home and work environments visitors for 4 days Fair participants and sponsor companies from across 23 countries Visitors from 93 countries CeBIT Synergy Summit attendence The key target groups are users from industry, the wholesale/retail sector, skilled trades, banks, the services sector, government agencies, science and all users passionate about technology. Investing in Europe s Fastest-Growing Economy One of the key explosions will be in e-commerce. We have started seeing the first signs of this with extreme-growth e-commerce startups like Trendyol, Markafoni and Grupanya, which already have millions of dollars in monthly revenues. Bolstered by a very strong payments system (51 million credit card holders according to the Turkish Interbank Card Center) and an effective logistics infrastructure, the wave of pure online e -commerce companies and e-commerce arms of brick and mortar players are here. And the first major exit of a Turkish technology startup to a global strategic buyer, when ebay acquired GittiGidiyor, the leading Turkish e-commerce platform, which was followed by Naspers acquisition of Markafoni. According to the IMD World Competitiveness Yearbook, Turkey ranks above Poland, Romania, Hungary and Bulgaria in the availability of qualified engineers. The increasingly vibrant ICT environment in Turkey has started to attract back the best and the brightest Turkish technical talent from graduate programs and top technology companies abroad. McBDC Business Development & Consultancy Services Co.Ltd 8

As McBDC from our point of view, the growth will keep rising in cloud computing, advanced mobile applications, e-commerce, new media, 3G services and software.

9 As McBDC from our point of view, the growth will keep rising in cloud computing, advanced mobile applications, e-commerce, new media, 3G services and software. If you want to book your place in this bullish outlook, McBDC is the right choice, with its vast knowledge, experience and awareness of the sector. Since there is much to do in Turkey as you now know by our report, McBDC is volunteered to meet firms to the right conditions, to prepare the ground for effective, rapid up-take. For more information about McBDC Partners, please contact; McBDC Business Development&Consultancy Services Co.Ltd. (Member of TUBISAD - Turkish Informatics Industry Association) Gazi Muhtar Paşa Çk Prof.Dr.Nevzat Gürelli Köşkü Feneryolu Istanbul /Turkey Tel : Fax : Web: info@mcbdc.com McBDC Business Development & Consultancy Services Co.Ltd 9

10 BIBLIOGRAPHY 1. BT Haber 2. Ankara Ticari Hayat 3. Ekonomist 4. Dünya Gazetesi McBDC Business Development & Consultancy Services Co.Ltd 10

IT market in Central and Eastern Europe Development forecasts for

IT market in Central and Eastern Europe Development forecasts for 2 Language: English Date of publication: Q2 Delivery: pdf Price from: 2900 Find out What is the current situation in the overall Central and Eastern European IT market? Which companies are the key players