ESIS extension - Turkey - Alternative Networks

The following report outlines new developments in the past three months and the state of on-going developments.

Some developments took place during this period, including signing the agreement for the third GSM license, acceptance of a by-law for broadcasting digital TV. On the other hand, ULAKNET, the network of academic institutions and research organisations, still remains the sole alternative network in Turkey.

As stated in the previous reports, 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.

A new telecommunication law was enacted early 2000 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. A tender was called during this period to privatise 20% share of Turk Telekom, but no bid was received. The government plans a new call for tender in the near future. As required by the new telecom law, an independent body for telecom regulation which was established during the previous period started working in this period. The new telecom law allows licensing of many services to private organisations, including data services, VSAT services, cable Internet, VPN, and many private companies and ISPs started offering these services recently.

Digital TV, cable TV and cable Internet continued expanding in this period. In the meantime a dispute took place in digital broadcasting in this period between digital TV companies and RTUK, Higher Council of Radio and Television, which is the regulatory body in radio and TV broadcasting. RTUK declared digital TV broadcasting illegal and banned it. The dispute was resolved by the telecom regulation council by introducing a by-law for digital TV broadcasting. Cable TV companies increased to 6, alltogether covering a major portion of the country.

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.