The World is Flat, but in a Different Way


While I was in Istanbul this past week, the number of ads for 3G USB modems I saw on the street jumped out at me, as did Turkcell's ubiquitous advertising for its 3G services. It turns out that the availability of these 3G modems, along with the netbooks that are showing up in high street shops in the major cities, are gaining significant traction. Together are enabling a new slice of Turkish consumers the ability to get online quickly and conveniently that they lacked before.
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Twenty-four hours in Istanbul has shown me Turkey is edging toward an advanced information economy. The city is being flooded with technology: digital TV in my taxi, competitive mobile services on offer everywhere, a flood of smartphones, dozens of slick satellite TV channels, SMS banking, mobile broadband, 3G netbooks, and electronics stores stacked the ceiling with flat-screens and every conceivable piece of consumer electronics.
This is of course against a background of per capita GDP around $8,000, and 50% of the income held by the top 20% of the population. Just last year, the EIU placed Turkey's e-readiness at 5.64 out of 10 in its index of ICT maturity. Nonetheless, a competitive market with a growing, status-seeking middle class appears to be enough of a lure for the nation's media, telecoms and product marketers to pour investment into Turkey's wires, towers and airwaves.
Like their peers elsewhere, Turkey's youth are glued to their technology , from mobiles to iPods, so much so that its has trickled up to older Turks as well. This bodes well for growing a stable technology culture, and therefore economy, in years to come. In the face of this, it will be interesting to see how top-down control of digital media, including blocking some services, will be maintained.
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This week I'm headed off to Istanbul, at the heart of the 11th largest Internet market in the world. Often overlooked, Turkey is a mini-BRIC in Internet and mobile usage, with almost 26 million of its citizens having access to the Web, over 5 million of which are connected via broadband. With over 66 million mobile subscriptions, the country is on par with some of Europe's largest mobile markets. According to CGAP, Turkey is one of the most progressive mobile money markets at the moment.
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