Turk Telekom said on Wednesday it reached a deal with Turkish authorities to extend its concession agreement until 2050, and it will pay $3 billion including tax over 10 years for the rights.

In a statement on the Public Disclosure Platform, the telecom company also pledged to implement a $17 billion investment plan through 2050 to support long-term strategic objectives and financial stability.

Turk Telekom will pay the Information and Communication Technologies Authority $2.5 billion, excluding VAT, for the service rights over the next decade as part of the deal.

It will pay $500 million annually in the first two years, then $200 million each year until 2034. The final installment in 2035 will be $100 million, with all payments due on the last business day of each year, it said.

The current concession, which gives the company the right to run Turkey's fixed-line infrastructure, had been due to expire on February 28, 2026.

The extension encompasses the provision, operation, and development of fixed electronic communications infrastructure in Turkey, as well as the marketing of wholesale and retail telecom services over these networks.

Transport and Infrastructure Minister Abdulkadir Uraloglu said the agreement "will support continuous investment in fixed infrastructure, contributing $20 billion" to the economy.

(Reporting by Canan Sevgili; Editing by Jonathan Spicer and Cynthia Osterman)