The telecommunications market has seen a major structural change toward liberalization, after the fixed-telephony network was opened to competition in 2005. Previously a monopoly, Turk Telecom (TT) is still the dominant telecom and broadband
Internet operator in the country, preserving a de facto monopoly of the fixed-line services. Before liberalization, Turk Telekomu ¨nikasyon A.S ¸. (Turk Telecom) was a state
company entirely owned by the Undersecretary of the Treasury. After years of national
debate and international pressure, the company’s privatization was carried out in
November 2005 when 55 percent of the shares were bought by private investors. 4 Subsequently, 15 percent of the remaining shares were sold and have recently begun to
be traded on the stock market.
There is a growing number of ISPs in the country. 5 Through its wholly owned subsidiary TTNet A.S ¸., Turk Telecom focuses on development of broadband services to
compensate for the loss of revenue in the liberalized fixed-line voice market. According
to a report by the National Telecommunications Authority for the telecoms market in
2007, TTNet had a market share of 95.7 percent in retail ADSL Internet access services,
while other operators hold the remaining 4.3 percent. 6 The company has announced
plans to invest nearly USD 800 million over the next few years in the sector and increase Internet usage in both urban and rural areas. 7
Turk Telecom owns international channels for Internet traffic. It operates the Internet backbone network (through TTNet) and leases lines to other providers. Thus, the
prices for external and sometimes internal lease of TT’s infrastructure affect most of
the ISPs.
In July 2008, Turk Telecom began offering VDSL2 (very high speed digital subscriber
line 2) service across 73 of 81 provinces. Turk Telecom wholesales this service to ISPs.
The VDSL2 service is transmitted over phone lines and increases the Internet connectivity in Turkey eightfold, bringing it into the top third of 23 European countries in
terms of fastest connectivity using DSL technology.
The main commercial ISPs in Turkey are TTNet, Superonline, Sabanci Telecom, Kocnet, Smile, Doruknet, DoganOnline, and IsNet. Superonline is owned by the C ¸ ukurova
Group, which is one of the leading Turkish business conglomerates. 8 Superonline’s
lines, just like those of other providers, pass through Turk Telecom. Superonline is
awaiting approval of a WiMAX license, which would allow it to provide ‘‘triple-play’’
services without being dependent on Turk Telecom’s infrastructure. 9
Some of the other main ISPs are affiliated with banking and media groups, including
the Sabanaci Group’s turk.net, Is Bank’s is.net, and Koc’s koc.net. Sabanci Telecom was
created through the merger of TTNet, Sabanci Telecom, and AK Internet. The provider
offers a range of services (data communications, Internet access, VoIP, and mobile data
services in partnership with the mobile operator Telsim). 10 In 2006, Sabanci’s investment in the ISP market reached 63 million liras.
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Internet operator in the country, preserving a de facto monopoly of the fixed-line services. Before liberalization, Turk Telekomu ¨nikasyon A.S ¸. (Turk Telecom) was a state
company entirely owned by the Undersecretary of the Treasury. After years of national
debate and international pressure, the company’s privatization was carried out in
November 2005 when 55 percent of the shares were bought by private investors. 4 Subsequently, 15 percent of the remaining shares were sold and have recently begun to
be traded on the stock market.
There is a growing number of ISPs in the country. 5 Through its wholly owned subsidiary TTNet A.S ¸., Turk Telecom focuses on development of broadband services to
compensate for the loss of revenue in the liberalized fixed-line voice market. According
to a report by the National Telecommunications Authority for the telecoms market in
2007, TTNet had a market share of 95.7 percent in retail ADSL Internet access services,
while other operators hold the remaining 4.3 percent. 6 The company has announced
plans to invest nearly USD 800 million over the next few years in the sector and increase Internet usage in both urban and rural areas. 7
Turk Telecom owns international channels for Internet traffic. It operates the Internet backbone network (through TTNet) and leases lines to other providers. Thus, the
prices for external and sometimes internal lease of TT’s infrastructure affect most of
the ISPs.
In July 2008, Turk Telecom began offering VDSL2 (very high speed digital subscriber
line 2) service across 73 of 81 provinces. Turk Telecom wholesales this service to ISPs.
The VDSL2 service is transmitted over phone lines and increases the Internet connectivity in Turkey eightfold, bringing it into the top third of 23 European countries in
terms of fastest connectivity using DSL technology.
The main commercial ISPs in Turkey are TTNet, Superonline, Sabanci Telecom, Kocnet, Smile, Doruknet, DoganOnline, and IsNet. Superonline is owned by the C ¸ ukurova
Group, which is one of the leading Turkish business conglomerates. 8 Superonline’s
lines, just like those of other providers, pass through Turk Telecom. Superonline is
awaiting approval of a WiMAX license, which would allow it to provide ‘‘triple-play’’
services without being dependent on Turk Telecom’s infrastructure. 9
Some of the other main ISPs are affiliated with banking and media groups, including
the Sabanaci Group’s turk.net, Is Bank’s is.net, and Koc’s koc.net. Sabanci Telecom was
created through the merger of TTNet, Sabanci Telecom, and AK Internet. The provider
offers a range of services (data communications, Internet access, VoIP, and mobile data
services in partnership with the mobile operator Telsim). 10 In 2006, Sabanci’s investment in the ISP market reached 63 million liras.
Turkey
343