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The ICT sector and IoT subsector are analysed using the SWOT analysis

Understand about existing conditions and perspectives

Strengths

  • Demand for high-tech telecommunications services, as well as the large Turkish population, are expected to increase total ITC spending.
  • Huge potential for growth considering the young population compared to Western countries.
  • Companies that have R&D activities in TZDs are exempt from income tax for these activities.
  • Increasing start-up activities.
  • Increasing digital activity in the public sector. Government institutions are one of the biggest IT buyers.
  • Encouragement of the government by facilitating ICT sector.
  • A share of IT in total public investment is growing.
  • Relatively low employee cost.
  • Energy resources. Turkey has the highest rate of growing energy demand among OECD countries over the last 15 years.
  • Low cost of starting/doing business
  • Foreign investments
  • Skilled, qualified and multilingual graduates
  • The importance of Turkey is also known from the geographical location of Europe, The Middle East and Asia.
Opportunities

  • Increasing budget allocation by the government for public IT investments.
  • Mobile phone subscriptions are expected to grow.
  • The ability to train highly qualified, young and dynamic computer engineers and software developers in ever-increasing numbers.
  • Penetration of internet in households and business is increasing.
  • Human Capital (qualified graduates)
  • Growing technical skills in ICT
  • Government support.

There are many opportunities

There are many opportunities to develop IoT products and other ICT services in Turkey. The young population of Turkey continues to drive sales of PCs, cell phones, consumer electronics, and cellular voice and data services. The audio-visual market is expected to rise further as smart buildings are constructed). However, some experts express concern about periodic and growing restrictions on some ICT products and services in Turkey, as well as censorship of online content. Fibre Optic solutions are gaining market access as infrastructure investments are made by Turk Telecom, TTNet, and other ISPs.

Weaknesses

  • High (though reducing) software piracy rate
  • Underdeveloped collaboration culture of R&D and innovation in the sector.
  • High taxation (VAT and Special Communication Tax) in the mobile sector. Telecommunication services are subject to special communication tax. This tax is not included in the VAT base.
  • Limited local demand for software slowdown in the fast growth rates enjoyed by smartphone and electronics vendors due to unfavourable exchange rates against the U.S. dollar.
  • Lack of sufficient expertise, project management, marketing and start-ups management.
  • Lack of management recognition of using IT tools for business.
Threats

  • Intellectual rights violations, piracy rates are relatively high
  • Lack of financial support to the ICT sector
  • Political instability and geopolitical situation
  • After the July 15, 2016, coup attempt, are harder for start-ups to attract foreign investments.

Cyber attacks

BTK, TUBITAK (Turkish R&D Institute) and the Ministry of Communication & Transportation are leading the Government’s cybersecurity efforts The cybersecurity segment is expected to grow as corporate and government ICT security systems remain to attract significant funding. Security of information leaving the company as well as identity theft, network security against attackers, and viruses, are among the top priorities with particular emphasis on providing legally sustainable evidence used in courts of law.

The Turkish Government has increased its expenditures in hardware and software in battling cyber threats. In order to implement these defences, BTK, the Department of Transportation and Communication, the Departments of Justice and Interior, the Turkish National Police, and the Turkish military will continue to update their cybersecurity technologies. The Transportation, Maritime Affairs and Communication Ministry formed SOME (Cyber Incidents Response Teams). SOME is formed under all state organizations and institutions in order to protect them from cyber-attacks.


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