Today, Turkey is holding an auction for the launch of a 5G network. The deployment of the next-generation mobile network technology should be available to major cities in April 2026.
The auction covers the allocation of 5G frequencies as well as the extension of existing network usage rights for previous generations of mobile networks until the end of 2042.
All three major telecommunications operators - government-controlled Türk Telekom and Turkcell, and the Turkish unit of Vodafone - have confirmed their participation. The total base license fee for all 5G frequencies has been set at USD 2.13 billion (excluding VAT). The auction offers three frequency blocks in the 700 MHz band and eight blocks in the 3.5 GHz band.
Telecom operators did not disclose investment forecasts ahead of the auction. Analysts expect the transition to 5G will require multi-year investments worth billions of dollars, with the timing and scale of these costs being closely watched by investors, Daily Sabah reported.
Telecom companies' debt levels and leverage ratios will be closely watched by investors. “The investor segment, through a cautious stance towards risk factors that we consider natural, may put pressure on the performance of shares in the short term”, insiders warn.
Telecom stocks underperformed the market during the previous spectrum auction in 2015. “The way the process unfolds in the first half of 2026 and the way companies communicate may lay the foundations for a change in the scenario we have described“, one of the companies noted.
The previous spectrum auction, held in 2015, authorized the three operators to offer 4.5G (IMT-Advanced) services for around 15 years, at a total cost of EUR 4 billion (including VAT).
As part of the auction Today, the licenses for GSM (2G), IMT-2000/UMTS (3G) and 4.5G networks, which were due to expire in April 2029, will be extended until the end of 2042. Operators will continue to pay 5% of their annual revenues from these services to the treasury.
Minister of Transport and Infrastructure Abdulkadir Uraloğlu said on October 15 that the first 5G signal will be transmitted on April 1, 2026, followed by a gradual nationwide deployment, with densely populated cities as a priority. He said that nationwide coverage could be achieved in just over a year.
According to Uraloğlu, there are approximately 85 million mobile subscribers in Turkey, with 22 million mobile phones compatible with 5G. "Those using 2G will have to change both their phones and SIM cards," he noted.
Uraloglu said the local content requirement for infrastructure equipment in the 4.5G tender was set at 45%, a percentage he said had already reached 52%. The 5G tender will raise that threshold to 60%. Nearly 30% of the products used must retain intellectual property rights in Turkey.
The minister said the 3G network would be gradually shut down, with 4.5G also becoming redundant once 5G is fully deployed. "Once 5G is fully operational, 4.5G will no longer be needed," Uraloglu said. “But 2G will likely continue to exist for basic voice and text services".