Reuters reported the Turkish Transport Minister said the country plans to offer two new Global System for Mobile communications licenses at 1800 MHz to complement the existing GSM 900 MHz licenses in operation.
One of the licenses will be the subject of an international tender the government hopes will raise at least $500 million. The second will be awarded to current state-owned telecom operator Turk Telekom, which is scheduled to be privatized by the end of the year. The new license is expected to add to the company’s value in that effort.
The Transport Ministry reportedly expects to offer the tender this month and have it completed by year’s end.
Turkey awarded two 900 MHz licenses this April in deals valued at about $1 billion to GSM operators Turkcell and Telsim.
Both carriers previously leased their licenses from Turk Telekom.
Turkcell recently put up a bond issue that raised $300 million, according to International Technology Consultants. Turkcell is the dominant GSM operator in the country, commanding close to 90 percent of all new GSM customers. The operator now is 50 percent oversubscribed-an indication of the need for more operators there.
Turkey is considered a crucial market due to its strategic location as a bridge between the Middle East, Asia and Eastern Europe, and for its 62 million population.
The U.S. Commerce Department placed the country on its 10 Big Emerging Markets list. The economic crisis going on in Asia has not affected Turkey’s financial situation, despite the country’s proximity to the area.
According to Commerce, the country’s telecom equipment sector is valued at $650 million and its telecom services sector is valued at more than $3.3 billion.
