Three Turkish mobile phone companies bid for frequencies to roll out a new high-tech service known in Turkey as 4.5G. Billions of euro change hands, and the companies walk away with a variety of packages and bandwidth allocations. Who wins?
I wrote a blog last February called “Business in Turkey: The rules of the Game”. I noted the importance for all countries of “a level playing field” in winning the competition to secure foreign direct investment.
“A level playing field” means, in business, all companies involved in an activity having equal chances.
The good news is that the frequency auctions held on 26 August, were widely held to be free and fair – the embodiment of “a level playing field”. The outcome is important for Turkey.
The auction means Turkey has taken an important step in its goal of becoming a competitive global economy, based on modern communications technology. The new frequencies will make possible more advanced broadband technologies, boosting investment and employment and speeding up the digital revolution to underpin Turkish economic success. All three companies say they are delighted.
Second, the auction, by demonstrating a “level playing field”, sends an important signal to overseas investors about the conditions for doing business in Turkey. The fairness and transparency of the auction should help boost future inward investment.
So the answer to the question of “who won the 4.5G auction?” is “Turkey won”.
Follow Leigh Turner on Twitter @LeighTurnerFCO