Esis extension / Turkey / Alternative Networks / Master Report

There is no real alternative telecom network in Turkey, except for ULAKNET. The only alternative network, ULAKNET, is the network of academic and research institutions. The communication infrastructure of even ULAKNET is owned by Turk Telekom, but ULAKNET is operated by ULAKBIM, a unit of TUBITAK, Scientific and Technical Research Council of Turkey.

According to the present legislation, Turk Telekom, which is currently 100% state owned, has a monopoly status on the infrastructure ownership and operation of telecom networks in the country. 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.

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 on a revenue sharing basis. It can also license other public organisations or private companies to do so. GSM and VSAT operations are examples of this.

Licensing of cable TV network to TV channels is the right of Higher Council of Radio and Television.

Very recently a new telecommunication law was enacted to liberalise the telecom market in Turkey. With the new law, 49% of Turk Telekom is to be sold. The law requires the monopoly status of Turk Telekom be ended by the end of year 2003. It also liberalises data services to a larger extend and relaxes some requirements in licensing procedures. The law also establishes an independent body for telecom regulation.

This report first gives information on ULAKNET and then discusses major public utilities administrations or companies with a potential to establish alternative networks for use in their operations and IT applications.

ULAKNET is the academic and research data network in Turkey. It is actually the single and the largest data communication network established by Turk Telekom with a partner. The partner is TUBITAK, Scientific and Research Council of Turkey.

ULAKNET links 66 universities in Turkey, 4 universities in Northern Cyprus, 4 units of TUBITAK, Higher Education Council, military academies, the Police Academy, military R & D units, National Library, Nuclear Energy Institute and History Institute. It currently has 120 ports with a total capacity of 60 Mbps. It offers ATM, frame relay and TDM technologies.

ULAKNET has two gateways to the Internet backbone of Turk Telekom, one in Ankara and the other in Izmir, both with 2 Mbps capacity. Another gateway is being established in Istanbul. The ULAKNET backbone itself has 34Mbps ATM connection between Ankara, Izmir and Istanbul. OSYM (central university entrance examination and placement center) is connected to ULAKNET with a 34 Mbps ATM connection.

ULAKNET has three gateways for international connectivity, one in Istanbul (a Sprint connection to the U.S. with 4 Mbps inbound and 1 Mbps outbound capacity) and the other two in Ankara (a UUnet connection to the U.S. with 2 Mbps inbound and 2 Mbps outbound capacity, and a Digex connection to the U.S. with 4 Mbps inbound and 1 Mbps outbound capacity).

Major public utilities infrastructures 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. Generally speaking, 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 are the actors of the major public utilities and other infrastructure and services with a potential to establish alternative networks for use in their operations and IT 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 10 518 km. Passenger volume is over 100 million passengers per year and freight volume is around 10 million tons per year. The railway network has a signalisation network with a potential to use as an alternative network.

State Highways Administration (Directorate General of Land Transportation-KGM) 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 do the maintenance highways and roads itself.

Ownership, operation and maintenance of roads within city boundaries belong to city municipality administrations.

Turkish Airlines (THY), which is currently 100% state owned, 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 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 –DHMI) 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.

Recently the Build-Operate-Transfer model has been adopted for airport construction and operation. The new Istanbul (Ataturk) airport is an example of this, where the airport was built by an international consortium and is now being operated by this consortium.

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.

Private mail and parcel services are also common both as within city and as inter city services.

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. There is also small scale private passenger transportation in Istanbul.

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 owns and operates oil pipelines.

Electricity generation is currently 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 production plants and the distribution network belong 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.

Recently the Build-Operate-Transfer model has been adopted for electricity production and there are currently several licenses issued and the construction of plants are under way. The new Istanbul (Ataturk) airport is an example of this, where the airport was built by an international consortium and is now being operated by this consortium.

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. Frequency allocation to TV and radio channels is done by Radio and Television Higher Council (RTUK).

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.