İSTANBUL — One of Turkey’s oldest technology companies, Netaş, is making a determined effort to return to its golden days. Once famous for its rotary phones, the company is now focusing on 5G investments and the export of value-added, locally developed products to Europe, North Africa, and Turkic republics.
Partially owned by Chinese tech giant ZTE, Netaş is also aiming to secure a double-digit market share in Turkey’s smartphone market with locally produced Nubia-branded phones.
While many still remember Netaş for its iconic rotary phones, today the company provides next-generation solutions to telecom operators, public and private institutions, and the defense industry — from mobile broadband to cybersecurity and cloud systems. Netaş’s signature can be seen in national projects like the communications systems of TGC Anadolu, components of the National Combat Aircraft, and autonomous driving software for the Gayrettepe–Istanbul Airport metro line.
Founded in 1967 through a joint venture between PTT and Canadian firm Nortel, Netaş has been publicly traded since 1993. Ownership changes followed in the 2000s, particularly after Nortel’s bankruptcy.
From Nortel to ZTE: A New Era for Netaş
In 2010, following Nortel’s collapse, OEP RHEA Turkey Technology BV acquired a 53.13% stake in Netaş. Then in 2017, to mark its 50th anniversary, global telecom powerhouse ZTE acquired 48.04% of the company for $101.3 million.
Now, Netaş is building a roadmap to revive its former strength. In Q1 2025, the company reported a 45% year-on-year increase in gross profit, reaching 181 million TL, while new orders jumped 41% to 2.8 billion TL.
“We believe that Netaş will fully bounce back by 2026 and beyond,” said CEO Sinan Dumlu in an exclusive interview. “We are rebuilding everything from scratch and focusing on revitalization.”
Dumlu highlighted that their 5G investments aim to establish a fully domestic ecosystem, enabling digital transformation across key sectors such as defense, transportation, finance, and healthcare. A major goal, he noted, is to boost exports by delivering high-value services abroad.
Three Strategic Pillars: From 5G to Smartphones
“Netaş is one of Turkey’s oldest tech firms. It has endured many crises and has always invested across multiple technologies,” Dumlu explained. “Today, we have three main focus areas.”
- Telecom Networks: “We continue to supply equipment to major carriers like Turkcell, Türk Telekom, and Vodafone — something we’ve done since 1967. Back then it was voice and wired systems; today it’s data and GSM.”
- Smartphones: “We’ve entered the mobile phone business under the ZTE Nubia brand. We manufacture locally in Istanbul and import high-end models. Our strategy is to import, localize, and eventually nationalize — a process we’ve also followed for 5G base stations.” “We launched smartphones in late 2024, struck deals with major telecom operators, and are now expanding into retail chains.”
- IT-Based Projects: “We build networks, data storage systems, and software for institutions like the Turkish Football Federation (TFF) and Istanbul Airport. We are the only local server manufacturer in Turkey, and our servers are now used in public, private, and defense sectors. We’re working to grow our user base.”
Pushing Exports Through Kazakhstan and Algeria
Netaş operates internationally through its subsidiaries in Kazakhstan and Algeria. Dumlu explained:
“In Kazakhstan, we work mostly with telecom operators and are a Microsoft partner. In Algeria, we support military and corporate clients with IT services — such as PBX systems for the army, and six data centers for Sonatrach. We also built the ticketing and access infrastructure for the Mediterranean Games, just like we did for TFF.”
“Our goal is to expand the export of Turkish-made products to Turkic republics via Kazakhstan, and to North Africa via Algeria,” he added.
Aiming for Double-Digit Market Share in Mobile Phones
Dumlu outlined their key targets across different sectors:
“Nubia is a strategic, complementary business for us. We aim to be a permanent player and reach at least a 10% market share. Turkey imports $4–6 billion worth of mobile phones annually, so local production is vital.”
“In 5G base stations, we’ll continue to offer domestic and national solutions. We’ve also entered the aerospace sector in the second half of 2024, a fast-growing field for Turkey, where we plan to be very active.”
“Lastly, the server business is crucial as data centers and cloud computing take center stage. Turkey imports around $400 million worth of servers each year. Producing them locally will offer serious economic benefits.”
Netaş already has export licenses for the servers it manufactures in Turkey and is working to sell them to Europe, North Africa, and Turkic republics. “We plan to do the same with Nubia in the future,” Dumlu concluded.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök