Turkish mobile operator Turkcell has been granted an extension to its 2G license by the Information and Communication Technologies Authority (ICTA). The company applied to extend the license before it was due to expire on April 27, 2023. As a result, the ICTA has informed the company in writing that the license agreement and usage rights for frequencies in the 900 MHz band will be extended until April 30, 2029.
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Extension fee of EUR 120 million determined by ICTA
In accordance with the "Procedures and Principles for Determining the Term Extension Conditions of the GSM License Agreements and GSM 1800 License Agreement", the ICTA has determined an extension fee of EUR 120 million (+ EUR 21.6 million VAT).
Turkcell made an initial payment
Accordingly, Turkcell has made an initial payment of EUR 81.6 million (equivalent to TRY 1.7 billion), which includes the down payment for the extension fee and the total amount of value-added tax. The remaining amount of EUR 31.1 million will be paid in two equal instalments, with the first instalment due on April 30, 2024, and the second on April 30, 2025.
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Following the payment, it is expected that the legal approval processes will be completed, and amendment contracts for the extension of the GSM License Agreement will be signed. Turkcell has welcomed the decision and will continue providing its customers with uninterrupted, high-quality services. Tukcell has shared the information in an exchange filing.
Turkcell's Turkey subscriber base grew by 2.3 million net additions in FY22, including 1.9 million mobile post-paid (taking postpaid share in mobile base to 68.1%) net additions, the highest performance since 2009.