After a dismal performance in 2001, the telecommunications network services market in Turkey saw a slight revival in 2002, according to IDC's latest study, Turkey Telecoms and Mobile Communications Services Forecast and Analysis, 2002-2007.
Market growth, however, was hindered in 2002 by geopolitical uncertainty and a continuing economic recession. The lead-up to military action in the region was an additional growth inhibitor for telephony services in 2002, and compounded the effects of an already jittery
consumer-spending and business-investment climate.
In 2002, the total market saw eight percent growth in end-user spending to reach $6.47 billion. Telephony services accounted for 56 percent of total market spending and mobile services for 41 percent. Leased circuit represented a further two percent of spending and managed data network services (MDNS) just below one percent.
Connections and spending for MDNS and leased circuit continued to increase during 2002, albeit at a slower pace than in previous years. "There has been a noticeable change in technology trends and preferences," says Mohsen Malaki, senior analyst in IDC CEMA's Telecommunications Group.
"This is primarily a result of reduced business spending and investment due to the economic recession and geopolitical uncertainty throughout the year." IDC has observed corporate MDNS users leaning more towards do-it-yourself solutions, particularly for international MDNS connections.”
Despite the uncertain geopolitical situation and delays in the return of economic growth in Turkey, mobile communication service subscriptions rose in 2002 in line with IDC's expectations. "Operator strategies that focused on prepaid services were the main drivers of growth in 2002," says Malaki.
"Nevertheless, average end-user spending on services has suffered due to an increase in the share of prepaid subscriptions and the overall macroeconomic condition."
IDC believes that the Turkish telecommunications network services market—which includes telephony, MDNS, leased circuit, and mobile services—will continue to be heavily dependent on macroeconomic improvements in Turkey. Currency stability, consumer confidence and spending, business investment recovery, and geopolitical stability will be key to the speed and level of recovery.
Nevertheless, IDC believes the overall telecommunications network services market will expand by 17 percentin 2003, and increase at a compound annual growth rate of 10 percent for the 2002-2007 period.
The total size of the market will grow from an expected $7.55 billion in 2003 to $10.63 billion in 2007. Much of this growth will be driven by mobile services, which will increase from a projected 45 percent of end-user spending on telecommunication network services in 2003, to 61 percent in 2007. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
