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Content provided by : Hong Kong Trade Development Council
30 Oct 2009
Telecom and RFID demand
- report from CeBIT Bilisim Eurasia 2009, Istanbul

  RFID technology applications growing in Turkey.
  RFID technology applications growing in Turkey.
Opportunities for Hong Kong players in Turkey are likely to develop in digital equipment, solutions and radio frequency identification (RFID) technology. Considerable demand for RFID card technology is expected from growing mass transit services, household security and Turkish retailers.

Cities such as Bursa are developing transit bus service payment models using contactless smart stickers and readers aiming for payment by cards, mobile phones and PDAs.

Two leading companies at the CeBIT Bilisim Eurasia show in Istanbul were Kentkart and Mapikart, both Turkish firms producing cards as well as associated equipment.

Kentkart offered innovation such as a combination of an Automated Fare Collection system (AFC) with a real-time vehicle tracking system using a GPRS modem; this configuration is integrated with additional functions in a single validator, or a passenger information system using SMS.

Mapikart, as a significant distributor of cards, card printers and card accessories, was looking for new business. Eren Alpay of Mapikart explained: "our share of the Turkish market is 60%, and we also export to the EU. From China we buy raw materials such as laminating film along with the machines for laminating, as well as paper shredders."

Charger with printer for receipts.   Alpay (right): buying raw materials from China.
Charger with printer for receipts.   Alpay (right): buying raw materials from China.

Orcun Bayindir of Meyer, one of the longest-established security companies in Turkey, sees a bright future for RFID in practically all areas of daily life, with Ankara, Istanbul, Bursa and other Turkish cities already using them successfully.

Meyer supplies biometric systems and software, being distributor of the Suprema fingerprint security technology in the country and distributor of BlueGuards, a wireless security system for households.

Fare collection system used in Turkey.   Security system from Meyer.
Fare collection system used in Turkey.   Security system from Meyer.

Mobile run up

Turkish people love their mobile phones, as seen during the opening ceremony for CeBIT Bilisim from 7 to 11 October.

President Abdullah Gül officiated, while Minister of Transportation and Communications, Binali Yildirim, proclaimed: "even during the crisis, the ICT sector has continued to invest, and our way to develop this sector is to remove obstacles and monopolies."

The Turkish government envisages that from 2023 [the Turkish Republic's centenary] the country will be one of the ten fastest-growing in the world for technology and transport services. Currently, some 2.5% of GDP is spent on IT research and development.

Turkish fascination with technology.   Spot who's missing: obsession with costs from telecom players.
Turkish fascination with technology.   Spot who's missing: obsession with costs from telecom players.

Gül explicitly mentioned his country's fascination for the latest technology and IT. The show indeed covered the entire spectrum, including telecommunications, software, consumer electronics and ICT-related services.

However, the top Turkish telecommunications firms were missing. Turkcell, Vodaphone and Avea apparently believed they already had contact with customers. By contrast, Serhat Ozeren from Tuted, the Turkish telecom industry association, felt the sector's commitment to the show was particularly weak, with producers of infrastructure, networks, data and connect cards also staying away.

The obsession with cost saving was also carried through by CeBIT itself, which ran to five instead of six days as in the previous year. The fair nevertheless attracted 67,122 professional visitors, as compared to 70,000 last year.

There were buyers from Turkey and nearby Middle Eastern countries as well as from Turkish-speaking communities in Central Asia. Many were intent on purchasing or adopting new services and solutions.

Exhibitors offered products in the categories of telecommunication and Internet services, networks, computers, peripherals and components, storage systems and equipment.

Ozeren (right): Syria and Iran are buying.  
Ozeren (right): Syria and Iran are buying.  
Offerings included digital entertainment and home electronics, as well as research and technology, display systems, security, HR learning and performance, business management applications, card technologies, global navigation, office automation, sales point system and systems software.

"Value-added services and solutions are being bought by countries such as Syria and Iran, where software engineering is still poor," said Ozeren from Tuted.

"The strong support for domestic manufacturing as well as research and development by the Turkish government has already induced three Chinese companies to use Turkish services."

Turkish supplier Genccell is said to provide services to Chinese firms involving data cards and mobile phones. HP and Foxconn of the US are expected to start personal computer production in Turkey next year, according to Ozeren.

WEEE regulation

  Cart made from chip waste by Exitcom.
  Cart made from chip waste by Exitcom.
A new source of raw materials for electronics lies in waste. However, this may not be the most important reason why Murat Ilgar, General Manager of Germany's Turkish unit for Exitcom, started the country's first recycling plant in Izmit in 2003.

Companies supplying hardware components and products for the European market must comply with the EU's Waste Electrical and Electronic Equipment (WEEE) regulation.

This regulation not only concerns those directly delivering to European customers. Components for Turkish or Israeli products, for instance, must also be lawfully disposed of and their disposal documented.

Ilgar: international customers.  
Ilgar: international customers.  
Raw materials for the IT industry such as gold, copper, platinum, Coltan, plastic and glass are becoming ever more scarce, and waste and mining destroying and contaminating wide areas of the planet, according to the company.

Exitcom has a mission: "Turkey has 400,000 tonnes of electronic waste per year, and there are now three recycling plants in Turkey. Ours is the biggest with an annual capacity of 27,000 tonnes. Our customers are, amongst others, Toshiba, HP, LG and Philips," said Ilgar.

China presence

  Yang (centre): barriers lower in Turkey.
  Yang (centre): barriers lower in Turkey.
James Yang, International Sales Director of the Chinese mainland firm B&K Rechargeable Batteries Inc, didn't see many visitors. "We will be back next year, even though there seem to be fewer professional visitors at CeBIT. While our main market is China with 80% [of sales], we are looking for Turkish and Eastern European customers. Barriers [in these countries] for the battery sector are lower than in the EU."

For imports to the EU, many certificates are needed, tantamount to a relevant cost factor, said Yang. However, with certain partners, the burden on importing to the EU could be shared.

B&K is currently looking at the car battery business. "We are talking with General Motors China and Volkswagen," said Yang.

Maple Liang, Regional Marketing Manager for the Chinese mainland's Tianyu, visited the fair for the first time. The company produces SIM cards for Turkish operators Turkcell and Vodaphone, and Liang was pleased.

"This is our first visit to CeBIT Turkey and the Turkish market is a new one for us. But on the second day of the fair we have already had contact with Turkish customers and we expect more. Turkey and Israel are important gateways to the EU for us."

Liang expecting customers.   Dental camera.
Liang expecting customers.   Dental camera.

Fairy Wong from HJD of the Mainland, also visiting for the first time, is optimistic: "we are thinking about opening an office in Turkey next year and will definitely be back at CeBIT Istanbul."

HJD produces video glasses, USB-drives, laptops, (wireless) headphones, web cams, and a product expected to be successful, a dental camera in the shape of an electric toothbrush.

from special correspondent Dagmar Boedicker, Istanbul

Contact:
Company/Contact Person Tel/Fax/Email/Web
B&K Rechargeable Battery Inc
James Yang, International Sales Director
Tel: (86) 755-2814-1651, (86) 755-2803-2081
Fax: (86) 755-2803-0777, (86) 755-2803-0606
Email: james.yang@bkbattery.com
Web: http://www.bkbattery.com
Exitcom
Murat Ilgar, General Manager
Tel: (90) 262-3523-676, (90) 262-3523-677
Fax: (90) 262-3523-681
Email: m.ilgar@exitcom.de, info@exitcom.de
Web: http://www.exitcom.de
HJD
Fairy Wong, Contact Person
Tel: (86) 134-2895-4376, (86) 755-8969-1223
Fax: (86) 755-8969-1226
Email: hjdgroup1@yahoo.com, fairywangster@gmail.com
Web: http://www.hjd88.com
Kentkart Tel: (90) 232-4456-181
Fax: (90) 232-4455-525
Email: info@kentkart.com
Web: http://www.kentkart.com
Mapikart
Eren Alpay, Contact Person
Tel: (90) 212-8764-240
Fax: (90) 212-8764-413
Email: Eren.Alpay@mapikart.com.tr
Web: http://www.mapikart.com.tr
Meyer
Orcun Bayindir, Contact Person
Tel: (90) 212-2930-644
Email: orcun@meyer.com.tr, meyer@meyer.com.tr
Web: http://www.meyer.com.tr
Tianyu
Maple Liang, Regional Marketing Manager
Tel: (86) 27-8792-0359, (86) 27-8792-0397, (86) 27-8792-0399
Fax: (86) 27-8792-0394
Email: liangf@whty.com.cn, intl@whty.com.cn
Web: http://www.whty.com.cn
Tuted
Serhat Ozeren, Contact Person
Tel: (90) 212-2587-070
Email: Serhat.ozeren@teder.org.tr