Turkey needs €10 billion to catch up with European telecommunication

Posted by Blog Sheikh on June 22, 2008

Link: Turkey needs €10 billion to catch up with European telecommunication

A senior official at the Center for European Policy Studies, or CEPS, said that Turkey needs to invest approximately 10 billion euros to reach European Union telecommunication infrastructure standards. Andrea Renda of the CEPS’ regulation department noted that this figure includes costs such as new technology and licensing fees. He maintained that Turkey’s tax burden on mobile communications is too high and that the delay in receiving third generation mobile communication, or 3G, licenses are the main handicaps for the sector. Given the fact that EU countries will be required to spend around 200 billion euros in total to transition to a fiber cable system, Renda pointed to the much heavier burden Turkey will have to bear when undertaking the process. Turkey’s unfavorable topography will make laying underground fiber cables a painful task, he noted. With the transition to fiber cables, copper cable will no longer be usable and all service will be provided by fiber optic cables and networks. Turkish Telecom, or TT, also made a decision to invest $4.3 billion in the transition to fiber cable, planned for 2010. This will allow TT to offer services like high-speed Internet and television broadcasting via Internet protocol, or IPTV, to more remote areas.

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