Turk Telekom Slumps on $3 Billion New Turkey Concession

Turk Telekomunikasyon AS will keep operating Turkey’s landline network until 2050 after agreeing to pay the government $3 billion and commit an additional $17 billion in investment to upgrade the country’s communications infrastructure. The shares fell in Istanbul.

The current license, due to expire early next year, allows the company to run the nation’s landline infrastructure. Under the new terms, Turk Telekom will pay $500 million annually in the first two years, followed by $200 million a year through 2034 and a final $100 million in 2035. Bloomberg reported last month the license could be extended for up to 25 years.