Esis extension / Turkey / Alternative Networks / Master Report

There is no alternative telecom network in Turkey. Therefore this report discusses major public utilities administrations or companies with a potential for use in IT applications.

Turk Telekom has a monopoly for the infrastructure ownership and operation of telecom networks in the country. Turk Telekom is 100% state owned. Thus Turk Telekom owns and operates the conventional telephony network, the Internet backbone, the cable TV network and the communication satellites TURKSAT 1B and TURKSAT 1C. Licensing of cable TV network to TV channels is the right of Higher Council of Radio and Television. Turk Telekom has the right to establish joint ventures with other public organisations or private companies to build or to operate telecom infrastructure and to provide telecom services. It can also license other public organisations or private companies to do so. GSM operation is an example of this.

There is a draft law in the agenda of the Turkish Grand National Assembly (the parliament) to liberalise Turk Telekom. With this law, 49% of the shares will be sold to other partners.

Major public utilities infrastructure such as railways, highways, water and sewage, gas, posts, electricity generation and distribution are owned and operated by state enterprises or municipality administrations or by companies owned by them. The legislation identifies these utility administrations or state enterprises as monopolies. On the other hand there is currently a liberalisation and privatisation operation for most of these administrations or enterprises that is either under way or planned.

Below is the actors of the major public utilities and other infrastructure and services with a potential for use in IT applications.

2. Inventory of the major "public" utilities with a potential for use in IS applications

State Railways Administration (Directorate General of State Railway Administration-TCDD) of the Ministry of Transportation is the owner and the operator of the railway network in Turkey. State Railways Administration does both passenger transportation and freight. Length of the railway network is currently 10518 km. Yearly passenger volume is over 100 million passengers and yearly freight volume is around 10 million tons. The railway network has a signalisation network with a potential for use in IT applications.

State Highways Administration (Directorate General of Land Transportation-KUGM) of the Ministry of Transportation is the owner and the operator of the highway and road network in Turkey. State Highways Administration is equipped to maintain highways and roads itself.

Turkish Airlines (THY) has a monopoly for domestic destinations. Another state institution, Turkish Aviation Institution (THK), also has the right for domestic flights mostly for special purposes such as the promotion aviation. Recently there are discussions to convert Turkish Aviation Institution into a domestic a carrier for short distances. Turkish Airlines is one of the enterprises to be privatised. Private airline companies are granted permission for international destinations.

Airports are owned and operated by State Airports Administration (Directorate General of State Airports Administration ñDHMI) of the Ministry of Transportation. Airport ground services are privatised. HAVAS is the leading ground service provider.

Directorate General of Civil Aviation (SHGM) of the Ministry of Transportation is the regulatory authority of civil (non military) aviation.

Construction of new highways, airports and sea ports is contracted to private companies or international joint venture consortia. Directorate General of Railways, Ports and Airports Construction (DLH) is the authority on behalf of the Ministry of Transportation in this respect. Ownership, operation and maintenance of roads within city boundaries belong to city municipality administrations.

State Post Administration (Directorate general of Post Administration-PIGM) of the Ministry of Transportation is the post service provider in Turkey. Aside from conventional postal services, Post Administration offers services such as digital letter, money transfer, post checks, etc.

Each city municipality has an administration or company to build, maintain and operate its own urban water and sewage network, eg. ISKI for Istanbul, ASKI for Ankara.

State Waterworks Administration (Directorate General of State Waterworks -DSI) of the Ministry of Rural Areas, is the owner and the operator of water distribution and irrigation system in rural areas. Rural area administrative units such as village councils have some rights on the water originating from within the boundaries of their unit.

Passenger transportation in sea is a state monopoly in Turkey granted to Sea Transportation Enterprise. Some city municipalities (ie. Istanbul and Izmir) have special organisations (City Sea Transportation Enterprise) for passenger transportation between ports within the city or between the city and the nearby ports. Freight transportation is liberalised.

Major cities have gas distribution networks which are owned and operated by a company or administration owned by city municipality, eg. IGDAS for Istanbul.

Nationwide gas distribution pipeline is owned and operated by a state enterprise called State Pipelines Enterprise BOTAS, which also ownes and operates oil pipelines.

Electricity generation is from water dams and from lignite and gas based electricity generation plants in Turkey (no nuclear plants, no wind energy). Electricity dams are owned by the state electricity enterprise. Lignite and gas based electricity plants are either state owned or private. Electricity distribution network belongs to State Electricity Production and Transmission Enterprise (TEAS). State Electricity Distribution Enterprise TEDAS is the leading electricity distributor. Recently distribution is licensed to private enterprises for a fixed number of years on a revenue sharing basis on a regional or provincial basis, eg. AKTAS in the Asian side of Istanbul. Electricity distribution is now privatised in this manner in most regions and provinces. Private enterprises distribute electricity and maintain and upgrade the physical distribution network.

National electricity network is interconnected with other electricity networks of neighbouring countries.

Cable TV infrastructure is owned by Turk Telekom. Frequency and channel allocation is done by Higher Council of Radio and Television RTUK. Currently 20 major cities are covered by cable TV. The 9 metropolitan cities are currently covered with 45 channels and 11 other cities are covered with 60 channels. The cable TV network is currently being extended.

Communication satellites are owned, operated and marketed by Turk Telekom. Turk Telekom has the right to licence satellite communication to private companies and TV channels or form joint ventures on a revenue sharing basis with private companies. VSAT service is an example of this where two joint ventures of Turk Telekom provide VSAT services. Another service provided over satellites is the rural area satellite communication system of Turk Telekom.

Turkey has a good and widespread banking sector, which has a working swift network.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.