RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.5/Rev.1
14March 1995
ORGANIZATION(95-0562)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM TURKEY
Response toQuestionnaire onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofTurkey toMembers ofthe
Negotiating Group onBasic Telecommunications.
_______________
Postal andtelecommunications services inTurkey were supplied byDirectorate General of
PTTasaState monopoly according tothe"Postal Law" No.5584 oftheyear1950 and"Telegraph
andTelephone Law" No.406oftheyear1924, respectively.
LawNo.406,remaining behind thetimes, hasproved tobefarfromkeeping upwiththerecent
developments andtheneeds ofthetelecommunications sector today.
Considering thattelecommunications isthedriving forceofsocial andeconomic development,
ithasbecome essential toachieve aneffective restructuring inthissector.
Therecent LawNo.4000 dated 10June1994, which isprepared inthiscontext andwhich
brings inthefollowing principal additions andchanges totheexisting LawNo.406,entered intoforce
on18June1994 bybeing published intheOfficial Gazette ofthesame date:
- Postal andtelegraph services areprovided bytheDirectorate General ofPosts, and
telecommunications services aresupplied bytheTurkish Telecom Co.Inc.(TTAS ¸).
- Thecompany becomes effective withitsMain Contract approved bytheMinister of
Transport andCommunications.
- Thecompany, withitsHeadquarters located inAnkara, issubject toprovisions ofthis
Law, theDecree (DEL) No.233, andtheTurkish Commercial Law(except its
provisions regarding establishment andregistration).
- Theprovisions ofthe"Radiocommunications Law" No.2813 andthose ofthe"Law
regarding Radio andTelevision" arereserved.
- TheMinister ofTransport andCommunications maydecide onthesaleof49percent
ofTTAS¸'sshares, andmaydetermine theprinciples andprocedures regarding thesale
ofshares tocover aswellthepossible privileges tobegranted tothePTT'semployees,
itsretired personnel, andpublic participants.S/NGBT/W/3/Add.5/Rev.1
Page2
- TheMinister ofTransport andCommunications hastherighttodetermine theportion
tobereserved fortheDirectorate General ofPosts outoftheshares tobesold.
- TheMinistryofTransportandCommunicationsmaygrantlicencestoprivatecompanies
fortheoperation ofmobile telephone, paging, datanetwork, intelligent network,
cable-TV, payphone, satellite systems andother value-added services withduecare
taken nottocreate monopolistic conditions.
- Theshare tobeallocated toTTAS¸outoftherevenues produced from thelicences
granted toprivate companies andthose from service provision bythementioned
operators aredetermined with theapproval oftheMinister ofTransport and
Communications.
- Principles andprocedures fortheprices oftheservices tobeprovided byTTAS¸and
private companies which aregranted licences enter intoforce withtheapproval ofthe
Minister ofTransport andCommunications.
- Theexisting postal andtelecommunications services areprovided bytheDirectorate
General ofPosts untiltheformal establishment ofTTAS¸.
Constitutional Court, resolving thatthesubject Lawisnotwholly indisagreement withthe
Constitution oftheRepublic ofTurkey byitsdecision dated 22December 1994, annulled some of
itsprovisions initalics above, specifying thatprocedures forthesaleofshares andconditions ofthe
licence granting should beincluded intheLaw.
Accordingly, theLawNo.4000 inquestion isnowbeing revised tocover suchprovisions
defining saleofshares, conditions oflicence granting, valuation ofPTT before salewith the
internationally recognized criteria used; thussubmitting itfortheapproval oftheParliament.
Currently, Turkey isinatransition period withrespect totelecommunications sector. Since
thestudies fortheestablishment ofTTAS¸,which isentrusted withthesupply oftelecommunications
services bythementioned LawNo.4000, thesubject services arebeing provided bytheDirectorate
General ofPosts inthistransition period inaccordance withthesame Law, andtheQuestionnaire on
Basic Telecommunications isresponded tothelargest possible extent under these circumstances.
PART I
Definition andMarket Structure
Definition
1. While there doesnotexistanyprovision defining basic telecommunications intheoriginal
Telegraph andTelephone LawNo.406of4February 1924, mention ofsuchservices asmobile
telephone,paging,datanetwork,intelligentnetwork,cable-TV,payphones,andsatellitesystems
wasmade asvalue-added services intherecent "Law regarding theChange Made toanArticle
oftheTelegraph andTelephone LawandAddition ofSome Further andProvisional Articles
tothatLaw" which waspassed bytheParliament on10June1994withtheNo.4000. Inthis
context; voice telephone, telex, telegraph, andprivate leased circuit services aredeemed to
bebasic telecommunications services.
2. Turkish legislation makes nodistinction between networks (facilities) andservices.S/NGBT/W/3/Add.5/Rev.1
Page3
3. Voice telephone, telex, telegraph, andprivate leased circuit services which areitemized in
theServices Sectoral Classification List(MTN.GNS/W/120) areconsidered tobebasic
telecommunications services inTurkey aswell. However, circuit/packet-switched data
transmission andfacsimile services contained inthesame listasthebasic telecommunications
arenotsoconsidered since theyarementioned asvalue-added services intherecent
LawNo.4000.
Market structure
4. Article 1oftheTelegraph andTelephone Law No.406, which hasbeen changed by
LawNo.4000, provides forthesupply oftelecommunications services byTurkish Telecom
Co.,Inc.(ITAS¸).Since, however, arrangements fortheestablishment ofTTAS¸havenotbeen
completed, thementioned services arecurrently supplied bytheDirectorate General ofPosts
according totheAdditional Article 4ofthesaidrecent Law.
5. Asindicated in(4)above, according tothechanged Article 1oftheTelegraph andTelephone
LawNo.406,bothnational andinternational telecommunications services aretobesupplied
byTTAS¸which istobeoriginally constituted asawholly government-owned corporate entity.
6. Work towards determining principles andprocedures toallow theforeign equity participation
isunderway.
7. (a) Seeanswer (4)above.
(b) Internationalprivateleaseddatacircuitservicescanbesuppliedthroughrevenue-sharing
application which allows theparticipation ofrelevant foreign firms intheprovision
ofthese services which areunder themonopoly ofTTAS¸asconsidered tobeofbasic
telecommunications.
8. Turkey hassigned thefollowing agreements:
ITUConstitution andConvention;
ITURadio Regulations;
ITUInternational Regulations;
Agreement andOperating Agreement ofINTELSAT;
Convention andOperating Agreement ofINMARSAT;
Convention andOperating Agreement ofEUTELSAT.
PART II
Competition
A. Sub-sectors
(i) Existing applications andtrends inTurkey have atendency toopen upthe
telecommunicationsservicestocompetitionandtoarrangefortheinvolvementofforeign
service suppliers aswellwiththeduecarealsotaken nottocreate monopolistic
conditions.S/NGBT/W/3/Add.5/Rev.1
Page4
Relevant Turkish legislation aremainly composed oftheTelegraph andTelephone
LawNo.406andtherecent LawNo.4000, ofwhich thelatter provides forthe
participation offoreign suppliers aswell inthesupply ofpack-switched data
transmission,circuit-switcheddatatransmission,andfacsimileservicesthroughoperating
licences.
(ii) AscanbeseeninTurkey 'scommitment list,theprovision oftelecommunications
services isstillunder monopoly inpractice. However, revenue-sharing model which
allows theparticipation offoreign suppliers isapplied intheprovision ofsome services
suchaspacket-switched datatransmission andinternational private leased datacircuit
services. Their staffinvolved intheinstallation oftherequired systems areexempted
from therestrictions imposed onnatural persons. There arenorestrictions on
consumption abroad.
(iii) Work towards determining principles andprocedures toenable domestic andforeign
firms toaccess themarket isalsounderway.
(iv) There doesnotexistanyprovision inthisregard.
(v) LawNo.4000 authorises theMinistry ofTransport andCommunications togrant
licences forvalue-added services. Work fortheestablishment ofrelevant principles
andprocedures isunderway.
B. Categories
Local/long distance/international
1. The"local" concept inturkey iscomposed ofthefollowing three elements:
Local Area isthatwhich iscovered byaninstalled lineonaselected route extending forup
tofourkilometres from anexchange provided thatitremains within theservice boundaries
oftheexchange involved. Withsomecertain conditions being fulfilled, however, localnetwork
boundariescanbeexpandedforthelocalitieswhichextendforadistanceofoverfourkilometres.
Inthelocalities withmunicipalities, local network boundaries canbeextended uptothe
boundaries ofthemunicipality 'sservice areaincases where thelatter exceeds fourkilometres.
Multi-Exchange Area istheareathatconsists ofmore thanoneautomatic exchange service
area, eachofwhich hascommon features insocial, economic, andcultural aspects, andeach
ofwhich benefits from various public facilities incommon withoneanother exhibiting
collectivity andintegrity interms oflocation/settlement. Theboundaries ofthemunicipality 's
service areaform those ofthemulti-exchange area.
Metropolitan Area isalmost similar tomulti-exchange areawiththose exceptions thatthe
boundaries ofthemetropolitan areaareformed bytheboundaries ofthemain municipality 's
service area, andmetropolitan areas aredetermined byTTAS¸.
The"domestic longdistance" consists ofthefollowing:
- Intra-country: Distances between thecountry townandthesmaller towns within that
country;S/NGBT/W/3/Add.5/Rev.1
Page5
- Intra-province: Distances between theprovincial capital andthecountry towns within
thatprovince;
- Distances ofupto100Kms.: Suchcrowflight distances between different provinces;
- Distances ofmore than100Kms.: Such crowflight distances between different
provinces.
2. There isnodistinction ofsuchsort.
Wire-based
Seeanswers under "A.Sub-sectors".
Radio-based
Seeanswers under "A.Sub-Sectors".
Resale basis
3. Turkish regulations donotpermit international resale ofprivate leased circuit capacity if
connected tothepublic network. Resale ofswitched voice capacity isnotpermitted, either.
4. Neither theresale ofprivate leased circuit excess capacity northeresale ofbasic
telecommunications foravailability tothirdparties arepermitted.
Facilities-based
5. Construction andoperation ofbasic telecommunications networks areunder theauthority of
State, which isexercised bytheDirectorate General ofPosts onlyuntiltheformal establishment
ofTTAS¸.
Public/non-public supply
6. There isnodistinction ofsuchsort.
7. Turkish regulations require thatallthetelecommunications aremade available tothepublic.
8. Seeanswer (7)above.
9. Astheonlysupplierofnationalandinternationaltelecommunicationsservices,TTAS¸undertakes
alltherelevant obligations andresponsibilities.
10. Theprocedures oforganizing andoffering aprivate network byatelecommunications supplier
willhavebeendetermined bythecompletion ofpertinent work which isunderway within the
framework ofLawNo.4000.
11. Currently, public pay-phones arebeing operated bytheDirectorate General ofPosts. However,
work forgranting therightofoperation ofpublic pay-phones totheprivate service suppliers
isbeing continued.S/NGBT/W/3/Add.5/Rev.1
Page6
PART III
Regulatory Issues
Relationship between regulatory andoperation functions
1. Regulatory policy fortelecommunications inTurkey isestablished bytheGovernment. TTAS¸,
asthetelecommunications service supplier, isnotinfluential inmaking regulatory policy.
Pertinent telecommunications legislation isdrafted byTTAS¸,according tothe"Principles
regarding Preparation oftheDrafts forLaws, Decrees, Regulations andDirectives" issued
inOfficial Gazette No.21339 dated 8September 1992, andenters intoforceafterthecompletion
oflegalprocedures bytherelevant authorities.
Inaccordance withtheparagraph 4oftheAdditional Article 18oftheLawNo.4000, principles
andprocedures regarding prices oftheservices tobeperformed byTTAS¸arearranged by
itself, andenterintoforcewiththeapproval oftheMinister ofTransport andCommunications.
2. TTAS¸apply thestandards ofTurkish Standards Institute atnational level andthose of
standardization organizations suchasISO,CCITT, andETSI atinternational level. Where
required, TTAS¸formulates newstandards.
3. Inlinewith the"Principles" specified inparagraph (1)above, anydraft lawregarding
telecommunications isprepared byTTAS¸andsubmitted totheMinistry ofTransport and
Communications. After receipt oftheviews ofother relevant ministries andgovernmental
bodies, theMinistry ofTransport andCommunications submits ittotheParliament. When
thebillispassed bytheParliament andapproved bythePresident oftheRepublic, itenters
intoforce bybeing published intheOfficial Gazette.
Itisalsopossible toregulate telecommunications bythedecrees (DELs) which areissued by
theCouncil ofMinisters within theframework ofanauthorization lawtobepassed bythe
Parliament, applicable forsome certain cases andperiod, inconformity withtheConstitution.
Telecommunications regulations other thanthose mentioned above areprepared byTTAS¸,
andenter intoforce withtheapproval oftheMinister ofTransport andCommunications
subsequent tothecompletion ofrelevant legalprocess.
TheMinistry ofTransport andCommunications istheresponsible body forsupervision and
inspection oftheactivities ofTTAS¸toensure them tobeperformed inconformity withthe
provisions ofthepertinent laws, regulations, anddirectives.
Thedisputes between TTAS¸anditscustomers which cannot beresolved bytheMinistry of
Transport andCommunications aredealtwiththelawcourts depending onthenature ofthe
question.
Itispossible tobring asuitattheleveloftheConstitutional Court fortheannulment oflaws
anddecrees insome certain terms andconditions according totheConstitution.
Frequency allotment orassignment
4. Directorate General ofRadiocommunications performs theplanning, coordination
(national/international) andassignment offrequencies tousers, andmakes changes orS/NGBT/W/3/Add.5/Rev.1
Page7
cancellations asnecessary. Italsomaintains anupdated National Main Frequency Listaswell
asperforming frequency analysis andregistration. Therequirements andcriteria applied for
theallotment orassignment ofradio frequencies arespecified according totheNational
Frequency Plans. Thetechnical study forfrequency assignments isconducted byusing the
localdatabases andapplication softwares. Inaddition, thechannel planning ofradio relays
andother specific systems thatneedharmonized frequency bands areperformed according
totherelevantCCIRandCEPTRecommendationsinlinewiththecountry'sNationalFrequency
Plans.
5. Frequency assignment applications forbothnational andforeign suppliers areunder these
procedures andcriteria.
Numbering andidentification codes
6. NumberingandidentificationcodesinTurkeyaredeterminedbyTTAS¸toprovidemoreefficient
telecommunications. Thefollowing main criteria areusedinarranging numbering plans in
conformity withtheCCITT E.164:
- Tosimplify theprinciples ofrouting andcharging;
- Tokeepdigitanalysis atmanageable levels;
- Toachieve acodescheme which ismore spacious andpowerful yetsimpler touse.
7. There isnoforeign telecommunications supplier involved inthemarket.
Standards, typeapproval andequipment attachment
8. TTAS¸hasitsownstandards thatweredeveloped under CCITT andETSI Recommendations.
9. Standards arepublished when theyaredeveloped orchanged. Also, TTAS¸mayhaveprivate
sector 'ssuggestions indeveloping standards forterminal equipment.
10. Alltheterminal equipment. Selfcertification isnotallowed except theGSM equipment.
11. Iftheterminal equipment haveatypeapproval fromTTAS¸,theycanbeattached tothepublic
network.
12. Yes,iftheyhavetypeapproval certification from TTAS¸.
13. Yes.
Interconnection
14. Existing various telecommunications networks areinterconnected toeachother asanecessity
oftheservice provision. However, since TTAS¸istheowner ofallthetelecommunications
networks involved, there doesnotexistanyregulation regarding theirinterconnection.
15. Since thereisnonetwork-based supplier other thanTTAS¸,anecessity formaking regulations
hasnotarisen.
16. Seeanswer (14)above.S/NGBT/W/3/Add.5/Rev.1
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17. Seeanswer (14)above.
Competitive safeguards
18. Competition inbasic telecommunications isnotpermitted.
19. No.
20. No.
21. No.
Pricing-related measures
22. According totheAdditional Article 18oftheLawNo.4000, prices oftheservices toberun
byTTAS¸arefixedbyitselfandenterintoforce withtheapproval oftheMinister ofTransport
andCommunications. Where required, subject prices maybedetermined bytheCouncil of
Ministers. Prices oftheservices tobeprovided byprivate companies granted licences enter
intoforce withtheapproval oftheMinister ofTransport andCommunications aswell.
23. Seeanswer (22)above along withthefactthattelecommunications tariffs inTurkey arebased
onthecostofmaterial andworkmanship aswellasthechanges intheparity ofexchange.
24. Thereduced tariffs arebeing applied forspecific groups. Suchgroups anddiscount ratesare
determinedbylawsandregulationswhichenterintoforcesubsequenttocertainlegalprocedures.
25. No.
26. Accounting ratesarefixed incommon withtheforeign counterparts onacase-by-case basis.
27. No.
Rights ofwayfortheconstructions ofinfrastructure
28. TTAS¸,astheonlytelecommunications services supplier, isfullyauthorized toconstruct its
owninfrastructure orfacilities. Inthiscontext, TTAS¸hastherightofmaking useofthepublic
orprivate properties (partly orwholly) when itconstructs thenecessary infrastructure and
facilities within theframework ofconditions specified inrelevant regulations.
29. There isnoforeign telecommunications supplier involved.
Newtelecommunications services
30. Theprovision ofnewtelecommunications services isnotrestricted. Inaccordance withthe
paragraphs 1and4oftheAdditional Article 18ofLawNo.4000, theMinistry ofTransport
andCommunications maygrant licences toprivate companies fortheoperation ofvalue-added
services withtheduecaretaken nottocreate monopolistic conditions. Studies fordetermining
theprocedures oflicence granting areunderway.
31. Seeanswer (30)above.