North’s controversial fibreoptic internet deal becomes law in Turkey

A controversial deal signed between the north’s ruling coalition and Turkish telecommunications company Turk Telekom which will see Turkish Cypriot taxpayers expend €110 million for the provision of fibreoptic internet infrastructure has been signed into law in Turkey.

The deal appeared in Turkey’s official government gazette, with Turk Telekom’s chief executive officer hailing the move.

“It is a great source of pride for us that Turk Telekom, as the region’s technology carrier, will now be undertaking the transformation to bring fibre internet to businesses and households,” he said.

He added that his company will “build the island’s digital future with a fibre campaign which will support the digitalisation of the TRNC in many areas, from education and the economy to healthcare and public services”.

“This transformation which has begun in North Cyprus is not just an infrastructure investment, but a long-term vision for the future which prioritises sustainable development, digital equality, and shared prosperity,” he said.

However, the deal garnered fierce pushback from the north’s opposition, with ‘MPs’ swift to point out the inflated cost and the fact that the deal was struck without any tender process.

Salahi Sahiner of the CTP described the deal as “a treasonous plan” and a “historical sacrifice”.

“While you are charging the guy selling asparagus on the side of the road 600,000TL [€12,261] in taxes, you are opening up billions of dollars in profit for this company,” he said.

He then added that “handing over the project to a single company without putting it out to tender will mean harm to the public in the long run and the giving away of public resources”, before pointing out the already rising costs of the project.

“Companies in this country wanted to participate in the tender, which had a market value of US$30m by forming a consortium. They requested a tender and submitted bids. We wanted the company which would put the state in the most profitable position to win the tender,” he said.

“Then, [‘public works minister’] Erhan Arikli came along and said, ‘we miscalculated, this project cannot be done for US$30m [€26m]’, and commissioned a feasibility study from Turk Telekom. The project was then awarded directly to Turk Telekom, with its price having increased to US$130m [€110m].”

He then pointed out that as part of the contract’s stipulations, the infrastructure will belong to Turk Telekom for 25 years.

“The company will charge the public billions of dollars for 25 years, and in return, it will pay the state only a five per cent dividend,” he said, before also criticising the planned one-year implementation time.

“It would be impossible to put fibreoptic internet in every home from Limnitis to Karpasia in one year. This company could not even complete Nicosia’s walled city in one year. This is a lie,” he said.

Another stipulation in the contract, he said, is that the north’s telecommunications department “will give 50 per cent of its money to Turk Telekom”.

“The company will be left with a stranglehold on the telecommunications department’s revenues and fibreoptic infrastructure line rentals … And that is before the work even begins, before the first shovel hits the ground,” he said.

He also said that despite this, Turk Telekom plans to lay its cables in existing tunnels, adding, “in other words, it will not be digging any new ones”.

Additionally, he pointed out that the contract does not cover the cost of switchboards and cooling systems, among other pieces of secondary infrastructure which are required to facilitate the operation of fibreoptic cables.

“With this deal, the tasks have been placed on the shoulders of the public works ministry. The company will underspend and exploit the public for 25 years. This is the kind of system being established,” he said.

He also accused Turk Telekom of stifling competition, saying that “if a fibreoptic cable passes in front of your house, you will be prevented from buying internet from any other provider than Turk Telekom”, and adding, “in other words, they will force you to buy from Turk Telekom”.

This assertion was bolstered towards the end of last year when the north’s telecommunications authority announced that the use of satellite-based internet providers, such as Elon Musk’s Starlink, is a crime punishable by up to six months in prison.

Meanwhile, Urun Solyali, also of the CTP, said the contract may violate the ‘TRNC’s’ constitution, with Arikli replying that “the path to the courts is clear”, before independent ‘MP’ Aysegul Baybars elaborated on this point, saying that the contract should require ‘parliamentary’ ratification and not simply be debated after the fact.

“This is not something which can be done through a briefing to parliament. Article 90 of the constitution clearly states that the contract must be ratified by parliament. The text contains neither a feasibility study nor tender specifications. There are no technical details whatsoever … First, you need to respect the constitution. You are still violating it,” she said.

Turk Telekom is 60-per-cent owned by Turkey’s sovereign wealth fund and 25-per-cent owned by Turkey’s finance ministry, with the remaining 15 per cent floated on the stock exchange.