Turk Telekom, the main actor in Turkey's telecommunication sector and the biggest sell-off in its privatization history, is in deep trouble and may end up back in government hands. The giant company was privatized in 2005, as Ojer Telekomunikasyon A.S. (Otas) — a subsidiary of Oger Telecom, owned by the Lebanese Hariri family — acquired a controlling 55% stake. The turbulence jolting the company stems from Otas' failure to repay loans in what is described as Turkey's biggest ever default.

The 60-day deadline the Turkish Treasury set for Otas to repay its $4.75 billion bank loan expired Oct. 1 amid reports that the treasury was mulling temporary changes in Turk Telekom's executive board. The reports were based on remarks that Transport, Maritime Affairs and Communications Minister Ahmet Arslan made Sept. 20. Arslan said, "Ownership may change hands in [Turk Telekom]. The treasury or we, as representatives of the treasury, will do what is required under the contract." The minister added, "We cannot allow the erosion of a pre-eminent establishment." The minister stressed how "issues stemming from Turk Telekom’s shareholders are not issues that affect Turk Telekom’s operations and development."

According to Turkey's Information and Communication Technologies Authority, Turk Telekom had net profits of $2.5 billion in 2014 and $1.3 billion in both 2015 and 2016. Drawing on those figures, the government maintains that the problem is not with Turk Telekom itself, but the majority stakeholder's failure to repay debts.

Turk Telekom represents the largest single sell-off in Turkey’s privatization history, accounting for more than $6.5 billion in total privatization revenues of nearly $72 billion. In the auction held July 1, 2005, the Oger Telecom Joint Venture Group made the highest bid of $6.55 billion, beating narrowly a $6.5 billion bid by the Etisalat-Calik Joint Venture Group. Calik Holding, which is very close to the government, had Berat Albayrak — President Recep Tayyip Erdogan's son-in-law and currently energy minister — among its senior executives at the time.