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Türk Telekom shows that cheap, low-speed and capped offers can boost fixed broadband penetration

Stephen Wilson Principal Analyst, Research

"Türk Telekom’s Internet Bizden fixed broadband offers show that operators can avoid the risk of customers relying soley on cellular connectivity, while simultaneously boosting fixed broadband penetration."

Türk Telekom launched its Internet Bizden offer in April 2017 to its retail arm and other wholesale customers. Türk Telekom’s corresponding retail plan came with speeds of 4Mbit/s and a usage allowance of 20GB, and was priced at a very low level (TRY14.9 (USD2.6) for those with a Türk Telekom home phone and TRY29.9 (USD5.3) for those without). Türk Telekom hoped that the offer would boost fixed broadband penetration, avert the threat of customers relying solely on cellular networks for connectivity and provide future upsell opportunities. However, it was not known at the time of launch whether there would be sufficient consumer interest and whether the operator’s subscribers would ultimately upgrade to more-expensive packages. This comment examines the impact of Türk Telekom’s Internet Bizden launch and considers how replicable such offers are for other operators.