2015 Annual Report
Transcription
2015 Annual Report
i INDEX INDEX ..................................................................................................................................... i LIST OF TABLES .................................................................................................................. ix LIST OF FIGURES ................................................................................................................. x LIST OF ACRONYMS .......................................................................................................... xii Quality Management System .................................................................................................. 3 ICTA Chairman and Board Members ................................................................................... 4 Information and Communications Technologies Authority ................................................ 7 Financial and Institutional Information .............................................................................. 13 1. ELECTRONIC COMMUNICATIONS MARKET ............................................ 17 1.1. Fixed Market ............................................................................................................ 20 1.2. Internet and Broadband ............................................................................................ 24 1.3. Mobile Market .......................................................................................................... 28 2. ECONOMIC REGULATIONS ............................................................................ 32 2.1. Authorization ............................................................................................................ 32 2.1.1. Authorization Regulations and Activities ................................................................ 33 2.1.1.1. ICTA Board Decision on Fixed Telephone Service Operators ................................ 33 2.1.1.2. The directive on Calling Line Identification ............................................................ 33 2.1.1.3. GSM 1800 Mobile Phone Services for HT-GSM 1800 MTH Air Vehicles ............ 33 2.1.1.4. Treasury Share.......................................................................................................... 34 2.1.1.5. Trial Permissions ...................................................................................................... 34 2.1.1.6. 4,5G Authorization ................................................................................................... 35 2.1.2. Authorization Types ................................................................................................. 35 2.1.2.1. Satellite Communication Service ............................................................................. 35 2.1.2.2. Satellite Platform Service ......................................................................................... 35 2.1.2.3. Infrastructure Operating Service .............................................................................. 36 ii 2.1.2.4. Internet Service Provision ........................................................................................ 36 2.1.2.5. Fixed Telephony Service .......................................................................................... 36 2.1.2.6. Wired Broadcasting Service ..................................................................................... 36 2.1.2.7. GMPCS Mobile Phone Service ................................................................................ 37 2.1.2.8. Mobile Virtual Network Service .............................................................................. 37 2.1.2.9. Public Access Mobile Radio Service ....................................................................... 37 2.1.2.10. Directory Services .................................................................................................... 37 2.2. Numbering Regulations............................................................................................ 38 2.2.1. Regulation Activities Regarding Number Portability .............................................. 38 2.2.2. Number Assignments ............................................................................................... 38 2.3. Access and Interconnection ...................................................................................... 39 2.3.1. Reference Access Offers .......................................................................................... 39 2.3.1.1. Türk Telekom Reference Leased Line Offer ........................................................... 39 2.3.1.2. Türk Telekom Reference Wholesale ATM/FR/ME Internet Resale Offer .............. 40 2.3.1.3. Türk Telekom Reference IP Level Bit Stream Access Offer ................................... 41 2.3.1.4. Türk Telekom Reference Wholesale xDSL Internet Resale Offer .......................... 41 2.3.1.5. Türk Telekom Reference Facility Sharing and Dark Fiber Offer ............................ 41 2.3.2. Interconnection Rates Regulations ........................................................................... 42 2.3.2.1. Promotional Discounts on Fixed Interconnection Rates .......................................... 42 2.3.3 Other Access and Interconnection Regulations ....................................................... 43 2.3.3.1 Duct, Conduit and Inner Duct Sharing Regulations ................................................. 43 2.3.3.2 New DSL Tariffs ...................................................................................................... 44 2.3.3.3 ISP Switching ........................................................................................................... 44 2.3.3.4 Approval of Different Promotions for Broadband and Leased Line Services ......... 44 2.3.4 Dispute Resolutions.................................................................................................. 45 2.3.5 Access Agreements .................................................................................................. 45 2.3.6 Mobile On-Net Price Regulation.............................................................................. 47 iii 2.3.7 Retail Price Regulations ........................................................................................... 47 2.3.7.1 Telephony Services .................................................................................................. 47 2.3.7.2 Regulation Regarding Tariff Comparison Websites ................................................ 48 2.3.8 Accounting Separation and Cost Accounting .......................................................... 48 2.4 Competition Regulations and Activities .................................................................. 49 2.4.1 Margin-Squeeze Remedy and Procedures & Principles Regarding Determination and Remedies of Margin Squeeze ............................................................................................ 49 2.4.2 Market Analysis ....................................................................................................... 50 2.5 Postal Services Regulations ..................................................................................... 50 2.5.1 Authorization of the Postal Service Providers ......................................................... 50 2.5.2 Determination of the basic tariff .............................................................................. 50 3 TECHNICAL REGULATIONS ........................................................................................ 51 3.1 Spectrum Management Regulations and Activities ................................................. 51 3.1.1 Transactions of Imposition, Notification and Accruement ...................................... 51 3.1.2 Public Access Mobile Radio (PAMR) ..................................................................... 51 3.1.3 Temporary Allocation Issues .................................................................................. 52 3.1.4 Notification Form (Class 2)...................................................................................... 53 3.1.5 Maritime Communication Systems .......................................................................... 54 3.1.6 Satellite Systems International Frequency Coordination Activities ........................ 56 3.1.7 Aeronautical Communications Systems................................................................... 56 3.1.8 Radio/TV Systems.................................................................................................... 57 3.1.8.1 Studies Pertaining to 694-862 MHz Frequency Band .............................................. 57 3.1.8.2 International Frequency Coordination Process of Terrestrial Digital Television Systems .................................................................................................................................. 58 3.1.8.3 Extension of Time for The Use of Radio-link Used by Radio and Television Broadcasters ............................................................................................................................. 59 3.1.9 Other Frequency Assignments ................................................................................. 59 3.1.9.1 450-470 MHz Frequency Band ................................................................................ 60 iv 3.1.9.2 Update of the Frequencies Bands Assigned to Turkish Armed Forces .................... 60 3.1.9.3 Frequency Coordination Activities with Neighboring Countries ............................ 60 3.1.10 National Monitoring System (NMS) Activities ....................................................... 61 3.1.11 Revision of MOBDF and NMS Modernization ....................................................... 62 3.1.12 Electromagnetic Field Measurement Authorization Certificate ............................... 63 3.1.13 Revising the By-Law on determination, control and inspection of the limit values of electromagnetic field strength from the electronic communication devices according to international standards.............................................................................................................. 63 3.1.14 "Communique on Acquiring Quality of Service Criteria of 3G Mobile Communication Service" ......................................................................................................... 63 3.1.15 Updating the By-Law on Procedures and Principles Regarding Design, Installation, Sharing of Cellular System Antenna Facilities ........................................................................ 63 3.1.16 Performing Studies to Extend Mobile Coverage Areas ........................................... 64 3.1.16.1 GSM coverage expanding studies in rural areas ...................................................... 64 3.1.16.2 GSM Coverage Measurements................................................................................. 65 3.2 Information Technologies Activities ........................................................................ 65 3.2.1 Electronic Signature ................................................................................................. 65 3.2.2 Internet Domain Names ........................................................................................... 66 3.2.3 Registered E-Mail System ........................................................................................ 67 3.2.4 Network and Information Security ........................................................................... 68 3.2.5 Cyber Security .......................................................................................................... 69 3.2.5.1 Awareness Raising Programs ................................................................................... 69 3.2.5.2 Cyber Exercise ......................................................................................................... 69 3.2.5.3 Preparation of Procedures and Principles for Sector Specific CSIRT ..................... 70 3.3 Market Surveillance Activities on Radio and Telecommunicaitons Terminal Equipment ................................................................................................................................ 70 3.3.1 Harmonised Standards.............................................................................................. 70 3.3.2.1 Accreditation of Market Surveillance Laboratory and Calibration Process of the Equipment ................................................................................................................................ 71 3.3.2.2 Inter-laboratory Comparison (ILC) Tests and Proficiency Testing (PT) ................. 71 v 3.3.2.3 Testing Activities ..................................................................................................... 72 3.3.2.4 New Test Instructions and Other Issues ................................................................... 74 3.4 Sector Technical Regulations and Activities Relating to the Electronic Communications .................................................................................................................................. 74 3.4.1 Communiqué on Enhancement of Communiqué on Quality of Fixed Telephone Services .................................................................................................................................. 74 3.4.2 Communiqué on Enhancement of Communiqué on Quality of Internet Service Providers’ Services ................................................................................................................... 74 3.4.3 Electronic Communications Infrastructure Information System (ECIS) Software ...... .................................................................................................................................. 75 3.4.4 Reporting and Monitoring Fixed Broadband Service Quality with the Aid of Independent Body .................................................................................................................... 76 3.4.5 By-law on the Determination and Auditing of Electronic Communications Infrastructure Underground Facilities Minimum Requirements .............................................. 76 3.4.6 In the Electronic Communications Sector, Coordination Studies about Next Generation Mobile Communication (5G) Technologies .......................................................... 77 4. INSPECTION ......................................................................................................... 79 4.1 Inspection of authorized operators and legal and real persons subject to ICTA inspection ................................................................................................................................. 79 4.2 Inspection of Operators in 2015 ............................................................................... 80 4.3 Consequences of Inspections in 2015 ...................................................................... 82 4.4 Works within the context of Article 19 of the Communique on Inspection Activities of ICTA .................................................................................................................................. 83 4.5 Electromagnetic Interference ................................................................................... 83 4.6 Spectrum Monitoring ............................................................................................... 85 4.7 Continuous Monitoring System of Electromagnetic Fields ..................................... 86 4.8 The Inspection Activities on Market Surveillance ................................................... 87 5. REGULATIONS AND ACTIVITIES ON THE RIGHTS OF CONSUMERS 89 5.1 Processing of Personal Data and Protecting the Privacy.......................................... 89 5.2 Consumer consent about mobile data services ......................................................... 89 5.3 Regulation about how to calculate prorated charges and prorated credits is in effect .................................................................................................................................. 90 vi 5.4 Regulation regarding Interrogation of the Debt and Credit Information ................. 90 5.5 Transactions carried out with the agency ................................................................. 91 5.6 Communications Made For Marketing and Sexual Purpose .................................... 91 5.7 Activities Related to Internet Security and Internet Regulations ............................. 91 5.7.1 Awareness Raising Activities................................................................................... 92 5.7.2 Safer Internet Service ............................................................................................... 92 5.7.3 Child and Family Profiles Criteria Working Board Activities ................................. 93 5.7.4 Categorization Activities .......................................................................................... 93 5.7.5 R&D Activities ......................................................................................................... 93 5.7.6 Internet Hotline Service ........................................................................................... 94 5.8 Mobile Device Registration System ......................................................................... 95 5.9 Consumer Complaints ............................................................................................ 100 5.10 Right to Access to Information and BİMER Applications .................................... 101 6. INTERNATIONAL RELATIONS ..................................................................... 102 6.1 The Relations with the European Union ................................................................ 102 6.2 Relations with International Telecommunications Organizations ......................... 104 6.3 World Radiocommunication Conference (WRC – 15) .......................................... 106 6.4 Bilateral Cooperation ............................................................................................. 107 6.5 10th International Electronic Communications Regulators Conference ................ 109 6.6 International Seminar on Spectrum Regulations .................................................... 109 6.7 World Trade Organization and Free Trade Agreements Studies ........................... 110 7. PROJECTS AND OTHER ACTIVITIES ......................................................... 111 7.1 EU Supported Technical Assistance Project .......................................................... 111 7.2 Views Given to the Competition Authority ........................................................... 111 7.3 Legal (Consultancy) Activities............................................................................... 112 7.4 Updating the Official Websites of ICTA ............................................................... 113 7.5 Consultancy Service for ICTA Information Management System ........................ 113 vii 7.6 Data Center Studies ................................................................................................ 114 7.7 Preparation of Mobile Spectrum Strategy .............................................................. 115 7.8 Satisfaction of External Customer Survey ............................................................. 115 7.9 Application of OHSAS 18001 Occupational Health and Safety Management Standards for ICTA ................................................................................................................ 116 8. PUBLICATIONS ................................................................................................. 117 8.1 Quarterly Electronic Communications Market Data Reports ................................ 117 8.2 The Bulletin of Developments in International Electronic Communications Sector ... ................................................................................................................................ 117 8.3 Electronic Communications Statistics at Provincial Level .................................... 118 8.4 The Statistics of the Equipments Having Electronic Identity Information ............ 118 8.5 The Research Report about Mobile Payment Services .......................................... 118 8.6 Turkey The Report of the Importance of Expanding Green IT and Recommendations for ................................................................................................................................ 119 9. ICTA ON PRESS ................................................................................................. 120 viii LIST OF TABLES Table 1:Number of Internet Subscribers .................................................................................. 24 Table 2: Number of Authorization ........................................................................................... 32 Table 3: Number of Assignments in 2015 ............................................................................... 39 Table 4: Discounts rates within the scope of promotion .......................................................... 42 Table 5: Call origination rates within the scope of promotion ................................................. 43 Table 6:MMS call termination rates......................................................................................... 43 Table 7: Dispute Resolutions in 2015 ...................................................................................... 45 Table 8: Access and Interconnection Agreements Submitted to the ICTA ............................. 46 Table 9: Statistical Information for Notification Form (Class 2) ............................................. 54 Table 10: Total Number of Tested Devices ............................................................................. 73 Table 11:The Device Groups in the Market Surveillance Inspections in 2015 ....................... 87 Table 14: Ranking of Complaints According to the Categories ............................................ 101 Table 12: The range of cases that the ICTA has adhered as respondent in the year of 2015 112 Table 13: The range of cases that the ICTA has adhered as Claimant in the year of 2015 ... 112 Table 15: Media Relations 2015 ............................................................................................ 120 ix LIST OF FIGURES Figure 1: ICTA Organizational Chart as of December 2015 ..................................................... 9 Figure 2 : Borders and responsibilities of proviences of regional directorates ........................ 10 Figure 3 :The personnel distribution of the ICTA’s central and regional organizations ......... 11 Figure 4 :Personnel Distribution .............................................................................................. 11 Figure 5 :Distribution of the personnel according to their educational levels ......................... 12 Figure 6 :Distribution of the personnel in terms of the gender ................................................ 12 Figure 7: ICTA Budget ............................................................................................................ 13 Figure 8: Distribution of ICTA Revenues ................................................................................ 14 Figure 9: Budget Expenditures ................................................................................................. 14 Figure 10: Transfers From Budget ........................................................................................... 15 Figure 11: Net Sales (Billion TL) ............................................................................................ 17 Figure 12: Share of Operators in Net Sales (%) ....................................................................... 18 Figure 13: Total Investments of Operators (Million TL) ........................................................ 18 Figure 14: Total Traffic Volume, Billion Min. ........................................................................ 19 Figure 15: Total Traffic Distribution (%) ................................................................................ 19 Figure 16: Fixed Subscribers and Penetration.......................................................................... 20 Figure 17: Türk Telekom Traffic Distribution (%) .................................................................. 21 Figure 18: Shares of FTS – Türk Telekom in Call Origination (local) Traffic ........................ 21 Figure 19: Shares of FTS – Türk Telekom in Call Origination (National) Traffic .................. 22 Figure 20: Shares of FTS – Türk Telekom in Call Origination (to mobile) Traffic ................ 22 Figure 21: Shares of FTS – Türk Telekom in Call Origination (to abroad) Traffic ................ 23 Figure 22: FTS-Türk Telekom Shares’ in Total Fixed Traffic ................................................ 23 Figure 23: FTS Revenues – Türk Telekom Voice Services Revenues Comparison % ........... 24 Figure 24: Number of xDSL Subscribers ................................................................................. 25 Figure 25: Fixed Broadband Penetration Rates in Turkey and OECD .................................... 26 Figure 26: Breakdown of Fixed Broadband Subscribers by Access Speeds ............................ 26 Figure 27: Distribution of Fixed Broadband Technologies,% ................................................. 27 Figure 28: Fixed-Mobile Broadband Penetration Rates, % ..................................................... 27 Figure 29: Number of Mobile Subscribers and Penetration Rates ........................................... 28 Figure 30: Mobile Penetration Rates in Turkey and Some European Countries, (%) ............. 28 Figure 31: Prepaid/Postpaid Mobile Subscriptions in Some European Countries ................... 29 Figure 32: Market Shares of Mobile Operators by Subscriber Numbers, 2015 ....................... 29 Figure 33: Number of SMS and MMS ..................................................................................... 30 Figure 34: Average ARPU Values for Türk Telekom and Mobile Operators ......................... 30 Figure 35: MoU Values for Turkey and European Countries .................................................. 31 Figure 36 : Cumulative Number of ISP Switching .................................................................. 44 Figure 37:Notification Form (Class 2) Monthly Application Statistics for 2015 .................... 54 Figure 38: Components of NMS .............................................................................................. 61 Figure 39 :Settlements that offered coverage by Universal Service Fund ............................... 64 Figure 40 : Total Number of Devices and Applied Tests ........................................................ 73 Figure 41 : Inspections Launched in 2015 ............................................................................... 80 Figure 42 : Inspections Launched in 2013 and 2014 and Ongoing in 2015, and Inspections Launched in 2015 ..................................................................................................................... 81 Figure 43 :Inspections conducted in 2015................................................................................ 81 Figure 44 : Statistical Graphic of EMI Complaints about ........................................................ 84 Figure 45 : Source of EMI Complaints Graphic ...................................................................... 84 Figure 46 : Screen of Analyse Frequencies .............................................................................. 85 Figure 47: Operation of Continuous Monitoring System of Electromagnetic Fields System . 86 x Figure 48: Number of Reports by Year .................................................................................... 95 Figure 49 : Distribution of IMEIs Registered in Mobile Device Registration System ............ 96 Figure 50: Number of IMEIs Registered Through Importation ............................................... 96 Figure 51: Number of IMEIs Registered Through Manufacturing .......................................... 97 Figure 52: Number of IMEIs of Equipment Brought and Registered by Individuals .............. 98 Figure 53: Ratio of Registrations Through E-Government ...................................................... 98 Figure 54: Registration Documents Audited By ICTA ............................................................ 99 Figure 55: Number of Calls ...................................................................................................... 99 Figure 56: Ranking of Complaints According to Services .................................................... 100 Figure 57: Data Center Plan ................................................................................................... 115 xi 3G : LIST OF ACRONYMS Third Generation 4G : Fourth Generation 4.5 G : 4.5 Generation 4G : Fourth Generation ADSL : Asymmetric Digital Subscriber Line AFAD : Disaster and Emergency Management Presidency ARE : Regulatory Authority of Mauritania ARGEK : Research and Development Committee ARPU : Average Revenue per User ATM : Automatic Teller Machine ATRA : Afghanistan Telecom Regulatory Authority BEREC : Body of European Regulators for Electronic Communications BRIFIC : BR International Frequency Information Circular BS : Bachelor of Science BSA : Bit Stream Access CA : Competition Authority ccTLD : Country-Code Top-Level Domain CEPT : European Conference of Postal and Telecommunications Administrations CERT : Computer Emergency Response Team CMS : Content Management System DDoS : Distributed Denial of Service DMR : Digital Mobile Radio ECIS : Electronic Communications Infrastructure Information System ECSP : Electronic Certificate Service Providers EMC : Electromagnetic Compatibility EMERG : Euro-Mediterranean Regulators Group EMF : Electromagnetic fields EMI : Electromagnetic Interference ENISA : European Union Agency for Network and Information Security ESA : European Space Agency ESIS : Continuous monitoring system of electromagnetic fields ETSI : European Telecommunications Standards Institute xii EU : European Union FTA : Free Trade Agreements FTS : Fixed Telephony Services GIS : Geographical Information Systems GMPCS : Global Mobile Personal Communications by Satellite GSM : Global System for Mobile Communications GSMA : GSM Association HAKOM : Croatian Post and Electronic Communications Agency HST : High Speed Train ICANN : Internet Corporation for Assigned Names and Numbers ICAO/FMG : International Civil Aviation Organization/ Frequency Management Group ICSE : International Cyber Shield Exercise ICT : Information and Communications Technologies ICTA : Information and Communication Technologies Authority IGF : Internet Governance Forum ILC : Inter-laboratory Comparison IMEI : International Mobile Equipment Identity IMT : International Mobile Telecommunications IP : Internet Protocol IPA : Instrument for Pre-Accession IRG : Independent Regulators Group ISP : Internet Service Provider ITRs : International Telecommunication Regulations ITU : International Telecommunication Union KEGM/TİM : Directorate General of Coastal Safety/Directorate of Radiocommunication LLB : Bachelor of Laws LTE : Long Term Evolution LVD : Low Voltage Directive M2M : Machine to machine MBA : The Master of Business Administration MMS : Multi Message Service MNOs : Mobile Network Operators xiii MoU : Minutes of use MS : Master of Science MSI : Market surveillance and inspection MTR : Mobil Termination Rates Regulation MVNO : Mobile Virtual Network Operator NATO : North Atlantic Treaty Organization NFV : Network virtualization function NGOs : Non-govermental Organizations NMS : National Monitoring System NTD : Notice and takedown OECD : Organization for Economic Cooperation and Development OHSAS : Occupation Health and Safety Assessment Series PAMR : Public Access Mobile Radio PGM : Directorate of Market Surveillance Labarotuary PhD : Doctor of Philosophy PMO : Project Management Office PMP : Point to Multipoint PT : Proficiency Testing PTT : General Directorate of Post and Telegraph Organization QMS : Quality Management System QoS : Quality of Service R&D : Research and Development R&TTE : Radio and telecommunications terminal equipment RAO : Reference Access Offer REM : Registered E-Mail REMSP : Registered e-mail service providers RF : Radio Frequency RLLO : Reference Leased Line Offer RMC : Regional Monitoring Centers RTÜK : Radio and Television Supreme Council SAR : Specific Absorption Rate SDN : Software-defined networks SIM : Subscriber Identity Module SIS : Safer Internet Service xiv SMOS : Soil moisture and ocean salinity SMP : Significant market power SMS : Short Message Service SRD : Short Range Devices TAIEX : Technical Assistance for Information Exchange TBD : Turkey Informatics Association TCDD : Turkish State Railways TCRA : Tanzania Communications Regulatory Authority TETRA : Trans-European Trunk Radio TiSA : Trade in Services Agreement TiSA : The Trade in Services Agreement TOKİ : The Housing Development Administration of Turkey TRABİS : Network Information System TRC : Telecommunications Regulatory Commission TRCSL : Telecommunications Regulatory Commission of Sri Lanka TSE : Turkish Standards Institute TÜBİTAK : The Scientific and Technological Reserach Council of Turkey TURKAK : Turkish Accreditation Agency UDHB : Ministry of Transportation, Maritime Affairs and Communications UN : United Nations UPU : Universal Postal Union VAT : Value Added Tax WACC : Weighted Average Cost of Capital WGSE : Working Group Spectrum Engineering WiMAX : Worldwide Interoperability for Microwave Access WRC : World Radiocommunication Conference WSIS : World Summit on the Information Society WTDC : World Telecommunication Development Conference WTO : World Trade Organization xDSL : Digital Subscriber Line xv FOREWORD As we experience in our daily lives, information and communication technologies (ICT) sector contributes to economic efficiency in all sectors and paves the way for momentum to the growth of the country and the impact of ICT on economic and social life of the countries increases day by day. While information technologies, in the information era that we live in bring many opportunities such as economic efficiency, being able to have immediate access to the whole world, enabling to offer a value that we obtained to the benefit of all people instantly, if we can't have the appropriate competencies to the requirements of the era, it may also be an important threat like lagging behind our competitors not only individualy but also at institutional and national level. Although I deem that it is very important to provide ICT services to our citizens and increasingly usage of those services by our citizens like all over the world, I believe that being only the consumers of ICT devices that makes easier our lives and became indispensable assets for us, it doesn't make great importance for the future of our country. Today as accessing the information, those who build the ICT infrastructure has become more important than ever. Countries which can control these infrastructures, able to prevent information and communication possibilities or may use according to their own interest unless necessary precautions are taken. In this context, on the purpose of the studies to seize the opportunities of our time, minimize the threats, and as a part of the domestic and national production vision of His excellencies the President and the Prime Minister, mobile operators were obliged by 4.5G authorizations to supply up to 45% of the products used in their networks from domestic goods certificated products and 10% from manufactured by SMEs in Turkey. Having an import based electronic communication infrastructure in our country increases further the importance of these 1 regulations. For this reason, not only our public institutions but also our operators and manufacturers must show their maximum effort to achieve the objectives of these regulations. Migrating from import based ICT infrastructure ownership to the ICT infrastructure developed with domestic and national resources will only be possible with our hard work, patience, perseverance and determination with all of our stakeholders. In addition to these important developments towards domestic and national production we carried out many activities in 2015 such as from regulatory studies to protect consumer rights that is one of the reason of the presence of ICTA to the establishment of electronic communication infrastructure information systems and the studies to improve national broadband strategies, from activities to improve cyber security capacity to activities to enhance the institutional capacity. Within the scope of the important studies that we carried out in international area it is worth to mention that being chosen for vice presidency of European Independent Regulators Group is very important for our country to be represented in the presence of European regulators for the electronic communications sector. In the meantime, in 2015, our country were represented effectively at the meetings and conferences organized by international organizations besides international conferences and meetings organized by ICTA. On the other hand, there have been significant developments in the sectoral data in 2015. In this context, net sales of operators which are authorized by ICTA became 39.6 billion ₺, total investments including tender price of 4,5G authorization reached to 17.3 billion ₺. The number of authorized operators and authorizations has decreased to 672 and 1.088 in 2015 which were 686 and 1.127 respectively in at the end of 2014. While the number of fixed telephony subscribers has decreased from 12,5 million in 2014 to 11.5 million, the number of mobile phone subscribers has increased from 71,9 million to 73,6 million in the same period. Similarly, the number of broadband internet subscribers has increased from 41,2 million to 48,6 million. In this context, I kindly present "Information and Communication Technologies Authority 2015 Annual Report" which consists of the details of the activities that performed by ICTA and sectoral developments, and I'd like to express my wishes for 2016 to be more productive year for our sector and our country. Yours respectfully, Ömer Fatih SAYAN, PhD Chairman of the Board 2 Quality Management System Information and Communications Technologies Authority (ICTA) predicates its management system on Total Quality Management concept, which has proved its success in international level in order to provide services regarding regulation, authorization and supervision within contemporary management system as a Regulatory Authority in electronic communication and postal sector. ICTA established “Quality Management System (QMS)” and got it approved by Turkish Standards Institute (TSE) which is an independent licensing institution, in 11.12.2002. Thus, ICTA became the first regulatory and supervisory Authority owing TS EN ISO 9001:2008 QMS certification. ICTA has established its Quality Management System basing on 5 main processes which are Regulation, Permission, Supervision, Dispute Settlement, Management and Support. Quality Policy ICTA's quality policy is to provide effective and sustainable competition in the information and communications sector by regulating and supervising in accordance with international norms and standards; to protect the rights and interests of the related parties and to improve its service quality continuously. Mission Creating an effective and sustainable competition in the information and communications sector, enhancing the satisfaction of all related parties by protecting their rights and interests and providing the transformation into an information society by encouraging technological developments. Vision In the field of information and communications, make our country reach a level of effective, competitive and innovative state in international scale. Basic Values Impartiality and Reliability Openness and Transparency Predictability and Consistency Participation and Teamwork Basing on Science and Information 3 Innovation and Continuous Improvement Efficient Use of Resources Social Responsibility and Sensitivity Focusing on End User (Consumer) ICTA Chairman and Board Members Board of Information and Communications Technologies Authority (Board), the decisionmaking body of the Authority, consists of a chairman and six members. Chairman, as the top manager of the Authority, is responsible for general administration and representation of the Authority. Board selects one of its members as a Deputy Chairman upon request by Chairman. Members of the Board represent telecommunications sector, telecommunications services, radio-communications services and consumers. ICTA is a state organization with a special budget, financial and administrative autonomy, and is responsible to fulfill its powers and functions given by the Acts in force. The Authority is related to the Ministry of Transportation, Maritime Affairs and Communications. Omer Fatih SAYAN PhD, Chairman of the Board Mr. Sayan was born in Istanbul on June 10th, 1977. He holds a BS degree from Istanbul University Engineering Faculty Electronics Engineering Department, LLB degree from Bahcesehir University Faculty of Law, MS degree from Munich Technical University Electrical-Electronics Engineering Communications Engineering Department and PhD degree from Istanbul University Graduate School of Natural and Applied Sciences Biomedical Engineering Department. In his earlier career he worked in private sector in Turkey, Germany and USA for microchip production, mobile phone design and R&D. He worked as Adviser and Principal Adviser for the Prime Minister between the years 2007-2014.Mr. Sayan was appointed as the President of ICTA on August 25th, 2015. 4 Ihsan KULALI PhD, Board Member Mr. Kulali was born in Corum on August 13th, 1969. He holds a BA degree from Middle East Technical University Business Administration Department, MBA degree from Leeds University and PhD degree from Ankara University, Social Sciences Institute, Business Administration Department. Previously, he worked as the Head of Tariffs Department in ICTA. His first appointment as a Board Member representing consumers was on September 19th, 2007. After expiration of his term in the office, he served as the Vice Chairman of ICTA until he was appointed as the Board Member representing postal services for the second term on January 13th, 2014. Musa ŞAHİN, Board Member Mr. Şahin, was born in Ankara in 1969, he completed his primary and secondary education in Ankara. Mr. Şahin has a BS degree from Gazi University, Electrical-Electronics Engineering Department. He holds MS degree from Hacettepe University, Electric-Electronics Engineering Department. After graduation, he worked as a research assistant for a while. Then, he worked as a manager in public and private sector companies. Mr. Şahin was appointed as a Board Member, representing telecommunication services, on 28th January, 2009. He was elected as deputy chairman with the board decision dated 16.01.2014 numbered 2014/İK/29. Mr. Şahin was re-appointed on June 23rd, 2015, representing telecommunications services. Celalettin DİNÇER, Board Member Celalettin Dinçer was born in Trabzon in 1966. He has a BS degree from İstanbul Technical University, Department of Electronics and Communications Engineering. In his earlier career he worked in Turk Telekom as IT Director, Deputy Director General, and board member in Pantel. Mr. Dinçer was appointed as a Board Member, representing telecommunications sector on 17th of January, 2015. 5 Hidayet YILDIZ, Board Member Mr. Yıldız was born in Karaman in 1966. He has a BA degree from Ankara University, Faculty of Political Science, Labor Economics and Industrial Relations Department. He holds MA degree from Sakarya University, Social Sciences Institute. He has been working in ICTA since 2001, worked as the Head of Consumer Rights Department of ICTA and consultant to Minister of Transport, Maritime Affairs and Communications. Mr. Yıldız was appointed as a Board Member, representing radio-communications services on 17th of January, 2015. Figen KILIÇ, Board Member Ms. Kılıç was born in Gaziantep in 1970. She has a BS degree from Selçuk University, Department of Electrical-Electronics Engineering. She holds MS degree from Gebze Technological University, Electrical-Electronics Engineering Department. She worked as Director of Business Development and PMO in Çalık Holding and Product Development Manager in Turkcell. Ms. Kılıç was appointed as a Board Member on June 23rd, 2015, representing telecommunications services. 6 Information and Communications Technologies Authority Policymaking, regulation and operation functions are separated by the Law No 4502 dated 27.01.2000, amending the Laws No 406 and 2813, which are the basic laws of telecommunications sector3. While policy making is the responsibility of Ministry of Transport, Maritime Affairs and Communications, regulation function is given to Telecommunications Authority. Telecommunications Authority, established in 2000, is the first sectoral regulatory body of Turkey. The Authority is 102nd compared to similar authorities in the world. To remove the legislative untidiness, create competition in the sector, reduced the uncertainties for operators and transfer resources to Research and Development (R&D) activities, Electronic Communications Law has come into force on 10 November 2008 and the name of the Authority has changed ICTA. The duties of the Authority described in Electronic Communications Law No 5809 can be given below: Creation and maintaining the competition in the sector, Protecting the rights of subscribers, users, consumers and end users, Carrying out dispute resolution procedures between operators, Tracking the developments and stimulating the development of the electronic communications sector, Planning and allocation of the frequencies, satellite position and numbering, By taking into consideration the strategies and the policies of the Ministry of Transport, Maritime Affairs and Communications, performing necessary regulations and supervisions, including: Authorization Tariffs Access Numbering Spectrum management 7 Licensing for the installation and use of radio equipments and systems, Monitoring and supervision of the spectrum, Market observance and supervision, Detection and elimination of electromagnetic interference, Transferring a specific financial resource to the Ministry of Transport, Maritime Affairs and Communications for research, development and training activities pertaining to electronic communications sector, Approval and supervision of the tariffs, Approve the reference access offers submitted by the operators, Ensuring publication and implementation of the harmonized national standards for all kinds of systems and equipments, Conducting frequency planning, allocation and registration procedures pertaining to radio and television broadcasting, Coordinating with the authorized organizations that will perform the construction, measurement, maintenance and repair activities in electronic communications sector, Conducting market analyses regarding electronic communications sector, determination of the relevant markets and the operator/s with significant market power (SMP) in relevant markets, Participation in the works of international electronic communications associations and organizations, pursuing the implementation of decisions, Taking necessary measures specified by the legislation in force with a view to ensure that the national security, public order or public services are duly, Setting, auditing and/or having audited QoS standards of all types of services including universal service and determination of principles and procedures regarding setting and auditing of quality of services standards of services. ICTA also performs duties assigned by the Law No:5070 on “Electronic Signatures” came into force in 23.01.2004, the Law No:5397 on “Law Concerning the Amendments of Some Laws” came into force in 23.07.2005, the Law No. 5651 on “Regulating Broadcasting in the Internet and Fighting Against Crimes Committed through Internet Broadcasting” came into force in 23.05.2007, the Law No 6475 on “Postal Services” came into force in 23.05.2013 and other relevant legislation. 8 Based on the Law No: 5809 dated 10.11.20084, the organization structure of ICTA has changed according to ICTA Organization Ordinance published on Official Gazette dated on 08.06.2011. The Authority consists of 4 Vice Presidents, 17 Departments, Legal Consulting Office, 5 Offices and Telecommunication Communications Presidency with 5 Departments. By the end of 2015, the organizational structure of Authority is given below. Main Services Department Supportive Services Department Figure 1: ICTA Organizational Chart as of December 2015 9 The service units of the ICTA consist of main service units including departments and directorates, advisory service units and auxiliary service units as well as the provincial units including regional directorates. According to 5809 Electronic Comminications Law in order to provide sufficient organizational services, maximum ten regional directorates can be established. There already exit seven regional directorates which locate in Ankara, İstanbul, İzmir, Diyarbakır, Mersin, Samsun and Erzurum for carrying out fast field audit tasks. Regional directorates borders and provinces to be responsible are given in Figure 2. Figure 2 : Borders and responsibilities of proviences of regional directorates The distribution of the personnel at the ICTA’s headquarters and the regional directorates is shown as follows: 10 Regional; 172; 23% Central Regional Central; 570; 77% Figure 3 :The personnel distribution of the ICTA’s central and regional organizations The ongoing fundamental tasks and services that were assigned to our Authority pursuant to relevant legislation are performed by “occupational personnel” and “other staff”. As a specialist foundation, our organization acts predominantly through occupational personnel. These personnel consist of chief ICT expert, ICT expert, technical expert, administrative expert and assistant ICT expert, technical assistant expert and administrative assistant expert. The schematic distribution of our personnel is presented in Figure 4 as follows. Figure 4 :Personnel Distribution 11 The way to employ new personnel for our Authority is to employ occupational personnel as assistant experts. These assistant experts, who would need to be recruited, are employed in terms of the availability of the position and the needs of the Authority. The candidates are requested to take both written and oral examinations on the dates previously assigned by the Authority. Although Authority personnel generally hold bachelor and graduate degrees, their educational level can range from accosiate’s degrees all the way to doctor of philosophy (Ph.D.) degrees (Figure 5). 600 533 500 400 300 200 103 100 70 22 14 0 Doctorate Graduate Undergraduate Associate Other Figure 5 :Distribution of the personnel according to their educational levels The distribution of the personnel of our Authority by gender is as follows: Female; 214; 29% Male Female Male; 528; 71% Figure 6 :Distribution of the personnel in terms of the gender 12 Financial and Institutional Information ICTA is a state organization with a private budget and possesses administrative and financial autonomy. Financial operations are conducted in accordance with provisions of Public Financial Management and Control Law No. 5018. Estimated budget of ICTA for 2015 was 2.000 million TL, while realized budget for 2015 was 2.266 million TL (Figure 7). Figure 7: ICTA Budget Total revenue of the budget equals to 2.266 million TL consisting of 1.784 million TL from radio usage charges, 255 million TL from radio certificates of approval, 129 million TL from contribution and administrative share for the Authority’s expenditures and 98 million TL from other sources. 13 Figure 8: Distribution of ICTA Revenues 4,18% of the budget expenditures (88 million TL) consist of personnel expenditures, 3,19% (67 million TL) consists of acquisition of goods and services, 4,28% (90 million TL) percentage consists of capital expenditures and 88,35% (1.858 million TL) percentage consists of transfer expenditures. Figure 9: Budget Expenditures 14 The remaining 58,77% (1.092 million TL) consists of transfers to Treasury, 19,86% (369 million TL) consists of Universal Service Fund, 21,05% (391 million TL) consists of R&D Fund, 0,32% (6 million TL) consists of Membership Fees to International Organizations and the Social Security Institution. Figure 10: Transfers From Budget New Building Construction Regarding the construction of new building of ICTA, process is going on based on the agreement signed with Housing Development Administration of Turkey (TOKİ) in 15.08.2012. Construction process is being followed by ICTA. The entire building is planned to be completed in May 2016. 15 Training Activities Training activities are performed in order to increase the administrative, technical and legal capacity of ICTA. These activities increase the related practical and theoretical knowledge of our personnel regarding their duties, assist them in gaining the relevant information, abilities, and attitudes needed for them to be more successful in their occupation and to prepare them for promotions. The training activities are performed according to annual training plans that are communicated to relevant units, and are finalized by taking into account the needs of the units and personnel. Along with planned training activities, the personnel also have the opportunity to participate in any national and international symposium, conferences, training courses, and congresses arranged by other organizations. ICTA’s occupational personnel have also had the chance to pursue foreign language education opportunities covered by the related legislation. 16 1. ELECTRONIC COMMUNICATIONS MARKET The trend in total sales revenues in electronic communications sector, which has expressed a sustainable growth beginning with the liberalization process (started in 2004) and regulations, and the share of the operators within these revenues are shown in the Figure 11 and Figure 126. The revenues of 2015 are calculated according to the quarterly total revenues of operators that are sent to ICTA and they are not precise. As of the end of 2015, total sales revenues of all operators have reached to approximately 39,6 billion TL. The share of mobile operators in total revenues became 59.3 and Turk Telekom’s share became 20.1%. Figure 11: Net Sales (Billion TL) 17 Figure 12: Share of Operators in Net Sales (%) Similar to developments in electronic communications sector, the amount of investments also tends to increase. Total amount of investments carried out by the operators in 2014 and 2015 are shown in Figure 13 comparatively7. In 2015, total investments reached to 17.3 billion TL with a increasing rate of 205%. Figure 13: Total Investments of Operators (Million TL) 18 Total annual traffic volumes and their distributions in terms of fixed and mobile operators in Turkish electronic communications market are given in Figure 14. As shown in the figure, mobile traffic volumes increased significantly since 2009. In 2015, total mobile call volume reached to 222.6 billion minutes with an increasing rate of 7% since last year. On the other hand, representing 5% of total call volumes, fixed call volume decreased by 19% since 2014 to 11.3 billion minutes. 250 233,920 219,14911,317 202,55513,973 189,154 16,682 168,943 19,400 149,450 21,802 200 150 100 50 0 132 86 86 74 65 12 20 2003 2004 90 28 33 38 53 103 90 87 24 108 37 48 57 2005 2006 2007 23,632 222,603 205,176 185,873 169,754 147,141 125,819 74 2008 2009 Mobile 2010 Fixed 2011 2012 2013 2014 2015 Total Figure 14: Total Traffic Volume, Billion Min. On the other hand, the figure shows that fixed to fixed call volume has been followed a decreasing trend since 2007. While representing 32% of total call volume in 2007, fixed to fixed call volume now accounts only 3% of total call volume. 2015 90,5 2014 88,7 2013 4,9 4,3 2,0 86,8 2012 5,1 5,7 2,4 84,5 2011 5,2 81,9 2010 78,8 2009 77,7 2008 2007 4,7 3,11,7 5,2 5,4 4,2 69,8 60,9 Mobile-Mobile 2,4 2,6 Mobile-Other Fixed-Fixed 10,6 13,5 15,6 24,3 32,3 8,1 2,1 2,3 2,3 2,5 3,5 4,1 Fixed-Other Figure 15: Total Traffic Distribution (%) 19 1.1.Fixed Market The number of subscribers and penetration rates for fixed telephony since 2004 is given in Figure 16. The number of fixed subscribers decreased to 11.49 million with a penetration rate of 14.6%. Considering the fact that average household size1 in Turkey is around 3.60 in Turkey, it can be concluded that fixed line services reach to a significant proportion of Turkish citizens. Figure 16: Fixed Subscribers and Penetration Figure 17 illustrates the distribution of Türk Telekom’s fixed voice traffic by call types since 2008. The figure shows that on-net traffic volume2 keeps its share and represents 66.8% of total traffic. On the other hand, the share of mobile traffic increases constantly. While the share of mobile traffic was 9.6% in 2008, it increased to 26.3% in 2015. 1 2 2015 Turkish Statistical Institute (TSI) data. Average number of people living per household. Local and national traffic 20 Figure 17: Türk Telekom Traffic Distribution (%) Fixed Telephony Services (FTS) operators provide local, national and/or international telephony services to the end users by using any technology over any telecommunications network and infrastructure. In Figure 18, the local traffic volumes of FTS operators and Türk Telekom are presented from 2010 to 2015. According to this figure, FTS operators reached a share of 15% as of 2015 while it was 3.9% in 2010. Figure 18: Shares of FTS – Türk Telekom in Call Origination (local) Traffic 21 Figure 19 illustrates national traffic volumes of FTS operators and Türk Telekom from 2010 to 2015. In this period, the share of FTS operators and Türk Telekom accounted 42.4% and 57.6% respectively. Figure 19: Shares of FTS – Türk Telekom in Call Origination (National) Traffic Shares of FTS operators and Türk Telekom to mobile (based on traffic data) are given in Figure 20. Share of FTS operators’ calls in total traffic to mobile is increased to 44.4 whereas 2010 was %21.7. Figure 20: Shares of FTS – Türk Telekom in Call Origination (to mobile) Traffic 22 Shares of FTS operators and Türk Telekom based on call volumes destinating abroad are illustrated in Figure 21. While having a share of 13,8% in 2008, FTS operators’ market share was 34.3% in 2015. Figure 21: Shares of FTS – Türk Telekom in Call Origination (to abroad) Traffic Shares of FTS operators and Türk Telekom in total call volumes that originated from fixed networks are given in Figure 22. While the share of FTS operators is 3.2% in 2008, it reached to 30.4% in 2015. 100 96,8 95,8 92,5 88,7 82,1 76,4 73,1 69,6 % 80 60 40 23,6 26,9 30,4 17,9 20 3,2 4,2 7,5 11,3 0 2008 2009 2010 2011 2012 TT 2013 2014 2015 FTS Figure 22: FTS-Türk Telekom Shares’ in Total Fixed Traffic 23 The comparison of FTS operators’ total revenues with Türk Telekom’s total voice services is given in Figure 23. Market share of FTS operators is 15.6% and market share of Türk Telekom is 84.4% in 2015. Figure 23: FTS Revenues – Türk Telekom Voice Services Revenues Comparison % 1.2.Internet and Broadband The breakdown of internet subscribers by connection type and growth rates is given in Table 1 on an annual basis. By the end of 2015, number of internet subscribers in Turkey reached up to 48.6 million. The amount of annual increase in the internet subscribers is approximately 18%. Table 1:Number of Internet Subscribers3 2005 2006 2007 2008 xDSL 1.539.477 2.813.143 4.545.795 5.894.522 6.216.028 6.640.911 6.776.036 6.643.299 6.644.543 6.799.100 7.157.200 Cable 31.729 27.804 41.109 67.408 146.622 273.908 460.451 500.658 486.497 558.456 629.064 Mobile - - - - 2.067.122 7.219.288 14.708.427 19.720.341 24.173.143 32.360.661 39.067.554 Fibre - - - - - 154.059 267.144 645.092 1.193.704 1.457.397 1.672.628 Other 17.121 21.699 22.181 24.171 23.644 155.478 159.383 139.665 116.043 97.326 90.845 Total 1.590.332 2.864.652 4.609.085 5.986.101 8.453.416 14.443.644 22.371.441 27.649.055 32.613.930 41.272.940 48.617.291 - 80,1% 60,9% 29,9% 41,2% 70,9% 54,9% 23,6% 18,0% 26,6% 17,8% Growth Rate 2009 2010 2011 2012 2013 2014 2015 3 Mobile broadband ratio given here is updated. Currently, it includes the subscribers who have used packages less than one month period, who have used packages longer than one month period and who have accessed internet without any packages. Before, it was just consisted of the subscribers who had packages longer than one month period. 24 The majority of fixed broadband subscribers prefer xDSL (Digital Subscriber Line) technology in Turkey. The number of XDSL subscribers is 7.2 million (Figure 24). On the other hand, with the authorization of 3G services in July 2009, the number of mobile broadband subscribers had been increased significantly and reached up to 39 million at the end of 2015, constituting 80% of total internet subscribers. Figure 24: Number of xDSL Subscribers The breakdown of broadband technologies in Turkey and Organization for Economic Cooperation and Development (OECD) countries are compared in Figure 25. OECD average penetration rates as of June 2015 are 13.4% for xDSL, 9.1% for cable and 4.8% for fibre. For Turkey, xDSL penetration is 9.1%, cable penetration is 0.8% and fibre penetration is 2.1%. 25 Source: OECD Broadband Portal, June 2015 data for OECD, December 2015 data for Turkey Figure 25: Fixed Broadband Penetration Rates in Turkey and OECD Fixed broadband subscribers according to access speeds are given in Figure 26. As it is seen from the figure, 23.5% of fixed broadband subscribers prefer the packages of 4-8 Mbps connections. While the rate of the subscribers who prefer less than 1 Mbps is 2.8%, the rate of those who prefer the speed between 10-30 Mbps increases to more than 66.4%. Figure 26: Breakdown of Fixed Broadband Subscribers by Access Speeds 26 Figure 27 indicates the distribution of fixed broadband technologies including the differentiation of market shares between TTNet and other ISPs since 2006. In xDSL market, alternative operators’ market share increased to 16% in 2015, whereas market share of TTNet decreased from 95,9% in 2006 to 59.3% in 2015. Figure 27: Distribution of Fixed Broadband Technologies,% Fixed and mobile broadband penetration rates in Turkey and OECD countries are given in Figure 28. Fixed broadband penetration rate in Turkey is 11.2%, while OECD average is 28.8%. Mobile broadband penetration rate in Turkey is 45.6%, whereas OECD average is 85.4%. 180,0 160,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 31,7 138,8 29,3 130,5 41,9 112,6 50,5 103,8 34,4 118,1 32,6 117,7 38,6 106,5 32,1 111,3 28,1 114,2 28,5 104,3 39,0 92,9 37,2 92,3 37,4 84,6 33,9 85,4 41,2 75,1 27,8 86,8 28,1 80,4 39,7 68,5 36,6 65,4 24,1 75,3 22,7 76,1 28,6 69,7 36,4 61,7 27,9 67,2 35,8 54,6 27,0 49,7 25,8 49,9 28,9 45,9 30,5 43,8 18,4 55,2 14,6 52,6 26,9 34,4 12,1 49,6 11,2 45,6 28,8 85,4 140,0 Fixed Mobile Source: OECD Broadband Portal June 2015 data for OECD, December 2015 data for Turkey Figure 28: Fixed-Mobile Broadband Penetration Rates, % 27 1.3. Mobile Market There are 73,639,261 million mobile subscribers with a penetration rate of 93.5%. Annual growth of mobile subscribers and penetration rates are given in Figure 29. The figure also reflects the number of 3G subscribers that approached 64.3 million in 2015 since the authorization of 3G operators in July 2009. Figure 29: Number of Mobile Subscribers and Penetration Rates Mobile penetration rates in some European countries and Turkey are compared in Figure 30. Average mobile penetration rate in European Countries is 135% whereas it is 94% in Turkey as of the end of 2015. Source: Wireless Intelligence, 2015 Q4, BTK. Figure 30: Mobile Penetration Rates in Turkey and Some European Countries, (%) 28 Profile of mobile subscriptions in Turkey is compared with some European countries in Figure 31. Prepaid subscribers represent 52% of total mobile subscribers and postpaid subscribers represent the remaining 48%. In European countries prepaid and postpaid mobile subscribers represent 38% and 62% of total subscribers, respectively. Share of prepaid subscribers in mobile market is much higher than European average. Source: Wireless Intelligence, 2015 Q4, BTK. Figure 31: Prepaid/Postpaid Mobile Subscriptions in Some European Countries Market shares of mobile operators in terms of subscribers are given in Figure 32. The market shares of Turkcell, Vodafone and Avea are 46.2%, 30.4% and 23.4% respectively. Figure 32: Market Shares of Mobile Operators by Subscriber Numbers, 2015 29 The annual growth of total SMS and MMS numbers are given in Figure 33. As it can be seen from the figure, the number of MMS fluctuates at low levels while the number of SMS tends to decrease. In the fourth quarter of 2015, the number of SMS numbers passed 24 billion and the number of MMS was 17.5 million.4 Figure 33: Number of SMS and MMS Annual trend of ARPU for Türk Telekom and the average ARPU of three mobile operators are given in Figure 34. Average ARPU for mobile operators reached to 23.84 TL in 2015 and ARPU of Türk Telekom increased to 23.40 TL. Figure 34: Average ARPU Values for Türk Telekom and Mobile Operators 4 Because of the SMS containing any one of a Turkish characters is seen as multiple SMS in the interconnection system and the number of SMS reported drawn from the billing system instead of interconnection by all operators due to an annual data improvement process, SMS numbers decreased as compared with the previous years since the first quarter of 2014. Also the reason for the decline in the numbers of SMS is considered to be the due to the data servise alternatives instead of SMS and MMS. 30 Another indicator that is widely used for measuring mobile telephony usage is “minutes of usage” (MoU) that represents the average usage amount. MoU values in mobile telephony for some European countries and Turkey are given in Figure 35. Average mobile MoU in Turkey is 399 minutes. Source: Wireless Intelligence (2015-2), BTK. Figure 35: MoU Values for Turkey and European Countries 31 2. ECONOMIC REGULATIONS 2.1. Authorization Turkish electronic communications market has developed rapidly since liberalization on 1st January 2004. The number of players in the market tended to increase continuously after liberalization. As of 2015, there exist 672 operators with 1116 authorizations in the electronic communications market. Table 2: Number of Authorization Authorization Type Authorization Agreement Concession Agreement Authorized Notification Authorized Rights of Use TOTAL Services Satellite and Cable TV Services Number Authorizations 1 GSM Services 3 IMT-2000/UMTS Services 3 Various Telecommunications Services 1 IMT (4,5G) Authorization 3 Satellite Telecommunications Services 46 Satellite Platform Services 21 Infrastructure Operation Services 176 by Internet Service Providers 429 Wired Broadcasting Services 25 GMPCS Mobile Telephony Services 11 Mobile Virtual Network Operator Services 58 GSM 1800 Mobile Tefone Service on Aviation 3 GMPCS Mobile Telephony Services 3 PMR/PAMR Services 82 by Infrastructure Operation Services of 9 Fixed Telephone Services 194 Directory Information Services 12 Mobile Virtual Network Operator Services 36 1116 32 2.1.1. Authorization Regulations and Activities Carried Out in 2015 2.1.1.1. ICTA Board Decision on Fixed Telephone Service Operators It is determined a certain time for the Fixed Telephone Service operators to establish the necessary infrastructure in connection with Presidency of Telecommunication and Communication in accordance to regulatory Board Decision dated 09/07/2015 and numbered 2015/DK-YED/302. In the relevant period, failure to establish the technical infrastructure is considered as gross negligence. 2.1.1.2. The directive on Calling Line Identification Final draft of the directive which aims to identify the basic principles regarding the national/international numbering plan and the obligations of the operators about “Calling line identification” mentioned in the article 19 of “Ordinance on Authorization for Electronic Communications Sector” studies have been continued and regulation has been brought to be stage of completion. 2.1.1.3. GSM 1800 Mobile Phone Services for HT-GSM 1800 MTH Air Vehicles This service, covers providing of GSM 1800 mobile phone services for air vehicles within Turkish Air Space within 1710-1785 MHz and 1805-1880 MHz frequency bands. Operator is obliged to get necessary allowances from Directorate General of Civil Aviation for the provision of this service. Utilization of GMS 1800 mobile phone system to be installed and operated in air vehicles using Turkish Air Space but not registered in Turkey; is not subject to authorization with the condition of complying provisions set out under relevant legislation. However these systems are obliged to have necessary allowance from the country where the said air vehicle is registered for the installation and operation of GSM 1800 mobile phone system. 33 2.1.1.4. Treasury Share All necessary activities have been carried out to provide the operators who have an obligation to pay treasury share, performed their so-called obligation properly with respect to the related legislation and consession agreements. 2.1.1.5. Trial Permissions Pursuant to “Procedures and Principles Regarding the Provision Of Trial Permission in the Electronic Communications Sector” regulation, trial permissions covers procedures and principles concerning the provision of permissions for the establishment and use of electronic communications infrastructures, networks and services, on temporary basis, by the capital stock companies which were founded in line with the Turkish Laws, universities, researchdevelopment institutions and the public institutions, for research and development and/or testing and/or trial and/or demonstration purposes. In 2015, twenty two “LTE” and “LTE-Advanced”, one LTE-A on the e-GSM band, one WiMAX and one “Wi-Fi for Air Vehicles”, trial permissions – including demonstration purposed ones - were granted. 34 2.1.1.6. 4,5G Authorization Mobile electronic communications market has shown significant progress within the scope of mobile data services together with the authorization of 3G. In addition, wide spread usage of smart phones has increased the consumers’ demand for internet speed. In this point, the tender for International Mobile Telecommunications (IMT) Authorization, considered as of great importance not only for the development of market and meeting the consumers’ expectations but also for meeting the goals of our country proceeding in the way of becoming an information society was carried out on August 26, 2015, just after a while all winning operators are authorized on October 27, 2015. Total number of frequencies allocated for mobile electronic communications services are risen threefold after the aforementioned authorization, and a revenue of 3.960.212.918,74 Euro (VAT included) is obtained as a result of the tender. It is aimed that with the aforementioned authorization to form a competitive and innovative electronic communications market providing more developed and much faster broadband services. 2.1.2. Authorization Types As of 2015, in Turkish electronic communication industry 672 operators operate under 1116 authorizations. 2.1.2.1. Satellite Communication Service Satellite Communication Service covers providing of voice, data, image communication services for its subscribers/users excluding telephone services between geographical far points via electromagnetic waves as single or two-way via satellites and satellite ground stations and/or satellite terminals and installation and operation of relevant infrastructure. 2.1.2.2. Satellite Platform Service Satellite Platform Service is the service for converting voice, data and image signs excluding telephone services taken from different transmission environments with the assistance of encoder and multiplexers groups in digital satellite platform and their transmission to satellite as digital packages and transmission of digital signs received from satellites to 35 subscribers via proper terminal devices. 2.1.2.3. Infrastructure Operating Service Infrastructure Operating Service is the installation and operation of transmission infrastructure serving providing operator and opportunity users for electronic communication services excluding telephone services. 2.1.2.4. Internet Service Provision Internet Service Provision covers accessing of its subscribers/users to Internet network to provide their benefiting from electronic communication services and hosting services provided over Internet. 2.1.2.5. Fixed Telephony Service Fixed Telephony Service covers providing of fundamental and value added phone services to its users/subscribers over phone network without any technology limitations. 2.1.2.6. Wired Wired Broadcasting Service Broadcasting Service; is the electronic communication service covering transmission of signals (excluding phone and Internet) relevant to auxiliary services with digital/interactive such as encoded / clear radio, TV and video signals, games, instant massaging to subscribers over wired networks such as coaxial, copper, fiber. 36 2.1.2.7. GMPCS Mobile Phone Service GMPCS Mobile Phone Service, covers providing direct voice, data, fax and similar services besides providing of services estimated under the framework of GMPCS-MoU for users/subscribers over a satellite group which its position and operating frequencies are determined or supplied by ITU, fixed or mobile, wide or narrow band, global or non-global, immobile or mobile, current or planned. 2.1.2.8. Mobile Virtual Network Service It covers mobile electronic communication services to its subscribers with its own brand under the scope of authorizations granted by the Authority for the operator hosting over infrastructures of operators signing Concession Agreement with the Authority to provide mobile electronic communication service without having frequency band assigned to itself. 2.1.2.9. Public Access Mobile Radio Service Public Access Mobile Radio Service covers, electronic communication service accompanying one or more closed user groups within the same system by utilizing analog and/or digital technologies, consisting of minimum one central wireless or role and adequate numbers of subscriber wireless devices, consisting of providing service for its subscribers such as voice, data and optimized package data, massage, call, video services as single and/or two-ways, cellular and/or non-cellular, local and/or regional and installation and operation of relevant infrastructure. 2.1.2.10. Directory Services Directory Information Service is to supply information obtained from phone operators by accessing to their directory databases to its users via 118XY numbers. 37 2.2. Numbering Regulations 2.2.1. Regulation Activities Regarding Number Portability In order to harmonise number portabilitiy regulations with international regulations and to resolve the problems that faced during the number portability process, ICTA carried out a study. As the result of the study Amendments on Procedures And Principles Of Number Portability Proceses and draft By Law on Amendments Regarding By Law on Number Portability was approved by the ICTA Board with the desicion dated 19/11/2015 and numbered 2015/DK-YED/503. The said By Law was published on the Official Gazette dated 28/11/2015 and numbered 29546. With the new By Law, number portability process is shortened, the rule regarding 3 months waiting period is removed for fixed subscriptions and mobile subscriptions with taken over numbers, the time frames of operators regarding deactivation and activation are improved, some performance criteria is defined regarding the time frames of operators in number portability process, also the article regarding tarif transparency is changed in line with the Decisions of Council of State. 2.2.2. Number Assignments Number of allocated numbers in 2015 is presented at the Table 3 below. Totaly 9,73 million TL (included VAT ) is paid to Treasury account by operators as number right of use fee. Also in 2015, short number 176 was allocated as to Ministry of Culture and Tourism as “Communications Center of Ministry of Culture and Tourism”, short number 191 was allocated as to Ministry of Health as “Fight Aganist Drugs Information and Support Line” and short number 132 was allocated to Ministry of Health as “Immediate Aid Services Support Line”, short number 134 was allocated as to The Union of Municipalities of Turkey “Alo Taxi Line”, short number 140 was allocated to Ministry of Interior as “Terrorism Denunciation Line”. 38 Table 3: Number of Assignments in 2015 Number Type Allocation Geographical Numbers 826.000 Location Independent (Nomadic) 641.000 Numbers Mobile Numbers 60.000 Short Numbers 5 NSPC 12 Access Numbers 214 Directory Enquiry Numbers 4 Value-added Service Numbers 585 Mobile Network Code 1 2.3. Access and Interconnection 2.3.1. Reference Access Offers Reference access offers have a great importance in the sense that the conditions for interconnection with operators having SMP can be set forth, projections regarding the sector can be clarified and especially the new operators can estimate under what conditions they will enter the market. Obliging the operators having SMP to publish reference offer is a widely accepted regulatory practice across the world. 2.3.1.1. Türk Telekom Reference Leased Line Offer Türk Telekom Reference Leased Line Offer (RLLO), which approved for the first time in 2011, was approved completely for second time in 2015 and the new version entered into force in October 2015. In this context, some improvements and updates have been made in RLLO such as; 39 Point to point Metro Ethernet, TTunnel and Partial TTunnel tariffs were discounted by approximately 25%. Fiber optic cable prices which is one of the factors determining subscriber connection fees were discounted 24%. Point to point ATM services are excluded from the scope of the reference offer. Procedures of churn and migration operations were included in the reference offer for the first time. Türk Telekom obliged to install and operate an automated system for accepting and replying all of the notifications about services defined in the reference offer. In order to eliminate market entry barriers, conditions for utilizing wholesale tariffs (number of circuits, bandwidth etc.) had been reduced by 50%. A one-time operator identification fee was introduced into reference offer to prevent excessive costs / workforce losses because of the operators do not provide services after signing an access contract. 2.3.1.2. Türk Telekom Reference Wholesale ATM/FR/ME Internet Resale Offer Türk Telekom has SMP in the Wholesale Broadband Access Market including Bit Stream Access and in this context, has been imposed to provide wholesale access to the ATM, FR and Metro Ethernet Internet services. Türk Telekom Reference Wholesale ATM/FR/ME Internet Resale Offer (RAFMET) was approved for second time in 2015 and the new version entered into force in October 2015. In this context, the following changes were made in the reference offer. Metro Ethernet internet service tariffs were discounted by approximately 25%. Fiber optic cable prices, which is one of the factors determining subscriber connection fees, were discounted 24%. Procedures of churn and migration operations were included into reference offer for the first time. 40 Türk Telekom obliged to install and operate an automated system for accepting and replying all of the notifications about services defined in the reference offer. A one-time operator identification fee was introduced into reference offer to prevent excessive costs / workforce losses because of the operators do not provide services after signing an access contract. 2.3.1.3. Türk Telekom Reference IP Level Bit Stream Access Offer IP Level Bit Stream Access (IP Level BSA) is the main input for the retail broadband services and still the most common method preferred by ISPs among the wholesale broadband access models. In 2015, Türk Telekom Reference Offer for IP Level BSA, which includes the terms, conditions and charges for IP Level BSA services, was approved in May 2015 and entered into force in June 2015 considering recent legislation and the public opinions. The main revisions are as follows: subscribers will be able to change their operator or service performed with minimal service interruption, installation process of naked DSL service has been improved, revision for service level agreements. The aim of these revisions is to create a uniform structure among all reference offers. 2.3.1.4. Türk Telekom Reference Wholesale xDSL Internet Resale Offer Türk Telekom Reference Wholesale xDSL Internet Resale Offer was finally approved in November 2008. With the BSA becoming more widespread, its prevalence decreased. But the reference offer has been revised in parallel with the other reference offers. In this context, tariffs and rules and procedures have been revised and updated in a parallel condition with the Reference Offer for IP Level BSA. 2.3.1.5. Türk Telekom Reference Facility Sharing and Dark Fiber Offer Türk Telekom Reference Offer for Facility Sharing and Dark Fiber was firstly approved in June 2014 and then it was revised by the Board Decision dated 29.07.2015 and numbered 2015/DK-ETD/359 to enter into force from 01.09.2015. Revisions such as transmitting the requests with the electronic map, decisions on whether the specific or alternative routes are involved to evaluation, the limitation of maximum route length which is demanded from Türk Telekom in the same month at the same city is determined as 100 km, determination of encountered additional costs will be borne by whom, cancelling the obligation to set connection manhole by operators were made. 41 2.3.2. Interconnection Rates Regulations 2.3.2.1. Promotional Discounts on Fixed Interconnection Rates With the Board Decision dated 01.12.2014 and numbered 2014/DK-ETD/622, named as “The Promotion of Call Origination Rates of Türk Telekom For Alternative Fixed Network Operators”, current call origination rates for alternative fixed network operators were declined (for the period 01.01.2015 – 31.03.2015) in order to grow fixed voice market, encourage the usage of fixed telephony, facilitate the acquisition of fixed telephony services, extend the usage area of fixed telephony and enable alternative fixed network operators to compete with Turk Telekom retail tariffs. In this respect, discount rates and call origination rates for alternative fixed network operators after discounts are shown below. Moreover, Turk Telekom’s offers for extending the duration of promotion until 30.06.2015, and after this time until 31.12.2015 was approved by Board Decisions dated 18.03.2015 and numbered 2015/DK-ETD/161; and dated 09.07.2015 and numbered 2015/DK-ETD/300 respectively. Within the scope of promotion, discounts rates and call origination rates are given in Table 4 and Table 5 respectively. Table 4: Discounts rates within the scope of promotion Monthly Usage Discount Limit (min) Rate At Local Layer Discount At Rate Discount In-Zone At Layer Rate Out-Zone Layer 1. Level 0-2.8 Million 90% 90% 90% 2. Level 2.8-5.6 Million 55% 55% 55% 3. Level 5.6-11.2 Million 20% 20% 20% 42 Table 5: Call origination rates within the scope of promotion Call Origination Rates Call Origination Rates At Local Layer (Kr) - At In-Zone Layer (Kr) Call Origination Rates At Out-Zone Layer (Kr) 3. Level 0.28 0.34 0.45 4. Level 0.83 1.03 1.34 5. Level 1.25 1.54 2.02 Rates indicate net values (excluding taxes). According to article 20 of Electronic Communication Law numbered 5809; ICTA approved the access tariffs and these tariffs shall remain in force until a new version is published by the Authority. Within this scope, MMS call termination rates that are terminated ATM and 3N networks of mobile operators were approved and published by the Board Decision dated 16.10.2014 and numbered 2014/DK-ETD/522. Table 6:MMS call termination rates MMS Call Termination Rates (Kr/unit) - Avea Turkcell Vodafone 0.94 0.86 0.86 Rates indicate net values (excluding taxes). 2.3.3 Other Access and Interconnection Regulations 2.3.3.1 Duct, Conduit and Inner Duct Sharing Regulations Firstly, all operators which are authorized to set up and operate fixed electronic communications infrastructure are obliged to provide facility sharing services with the Board Decision dated 12.04.2013 and numbered 2013/DK-ETD/187. After that, procedures and principles of this obligation has been revised with the Board Decision dated 29.07.2015 and numbered 2015/DK-ETD/359. The most important revisions are as follows: addition of penal sanctioning for exceeding the specified time by operators which there is not before, transmitting the requests with the electronic map, whether specific or alternative routes is subject to evaluation, encountered additional costs will be borne by whom. 43 2.3.3.2 New DSL Tariffs New unlimited DSL internet tariffs have been added to tariff portfolio which is provided by Türk Telekom to ISP’s at wholesale level in order to increase end user’s choices. 2.3.3.3 ISP Switching As it is known, end users of DSL internet have been able to switch their ISPs via an application to the ISP that they are want to switch with a minimum service cut-off since October 2010 by the help of regulation on ISP Switching. While, in October 2010, the first implementing date of churn process, market share of ISPs other than TTNET was 7.77 %, this rate has reached to 21.73 % in November 2015. (Figure 36) It is considered that there is a significant contribution of ISP switching regulation to the increase of market share of the ISPs other than TTNET during this four-year- period. Figure 36 : Cumulative Number of ISP Switching 2.3.3.4 Approval of Different Promotions for Broadband and Leased Line Services Considering issues such as enabling users to benefit the electronic communications services for reasonable fee, protecting consumer rights and interests, encouraging the supply of electronic communications services, promoting the usage of the wholesale broadband access and leased line services and providing and protection of free and effective competition 44 environment; several promotion offers submitted to ICTA by Türk Telekom and these promotions came into force with the approval of Board Decisions on various dates. 2.3.4 Dispute Resolutions In accordance with the relevant legislation, in case that the operators cannot reach an agreement on access, including interconnection, any of the parties may apply to the Authority for running the dispute resolution procedure. If the dispute is accepted, the Authority has been entitled to determine the prices and provisions subject to dispute. With the changes in the ByLaw, compliance with the EU acquis has been achieved regarding non-court disputes, and also the Authority had the right to reject the request for dispute resolution in some circumstances. Within the framework of dispute resolution procedures carried out by the Authority, the settlement applications of operators' access and interconnection disputes were evaluated, and 2 (two) cases were concluded in 2015. Table 7: Dispute Resolutions in 2015 Parties In Dispute Finalised MVNO – Turkcell 1 ISP – Türk Telekom 1 Total 2 After the Electronic Communications Law which has a provision that SMP operators are obliged to provide access under the procedures, principles, and prices laid down in their reference offers approved by ICTA, the number of dispute resolution procedures has declined considerably. 2.3.5 Access Agreements Access and interconnection agreements that have been signed between the operators are submitted to the Authority in accordance 45 with the relevant legislation. In this context, there are totally 1.133 agreements submitted to the Authority by the end of 2015. Table 8: Access and Interconnection Agreements Submitted to the ICTA Parties to the Agreement Number Parties to the Agreement Number Türk Telekom – Mobile 3 Türk Telekom – GMPCS 2 Mobile – Mobile 8 Mobile – GMPCS 9 Türk Telekom – FTSP 55 FTSP – GMPCS 1 Others: 17 Local Loop Unbundling 8 55 (Türk Telekom-ISP; FTSP etc) Bit Stream Access Directory Service Providers – Mobile 19 15 (Türk Telekom-ISP; FTSP etc) xDSL Wholesale Directory Service Providers – Türk Telekom 97 Directory Service Providers – FSTP 4 Mobile – FTSP 182 Mobile – MVNO 7 FTSP – FTSP 462 A Type: 11 B Type: 9 C Type: 9 WLR: 9 (Resale) (Türk Telekom-ISP) Local Loop Unbundling (Türk Telekom-ISP; FTSP etc) Bit Stream Access (Türk Telekom-ISP; FTSP etc) Total 8 xDSL Wholesale (Resale) 38 160 (Türk Telekom-ISP) 1.133 46 Agreements on access and interconnection submitted to ICTA are examined in accordance with the relevant legislation. The provisions that include contradictions to the relevant legislation are notified to the operators, and they are entitled to make them appropriate with the relevant legislation. 2.3.6 Mobile On-Net Price Regulation With the Board Decision dated 25.03.2009 and numbered 2009/DK–07/149, an internal nondiscrimination remedy is imposed to Turkcell, where the average MTR charged by Turkcell to other operators can not be higher than the weighted average retail on-net tariffs it uses in each of its retail offers. Campaigns are also included in the scope of the obligation with Board Decision dated 25.04.2012 and numbered 2012/DK–07/181. On 13.03.2013, the ICTA decision comparing Turkcell’s on-net retail prices and its MTR is modified and new rules regarding the relation between the two prices are imposed. The modified obligation requires Turkcell to compare its retail on-net prices with its new wholesale on-net prices published in Turkcell’s Reference Access Offer which was approved on 05.02.2013. According to this modification, Turkcell is obliged to ensure that the average price applied to other operators for wholesale on-net calls is not higher than its weighted average retail on-net tariffs. Turkcell is also obliged to ensure that the average price applied to other operators for wholesale on-net SMS calls is not higher than its weighted average retail on-net tariffs. And also Board Decision dated 25.04.2012 and numbered 2012/DK–07/181 is suspended. The developments in the sector and Turkcell’s compliance with aforementioned Board decisions were monitored in 2015. 2.3.7 Retail Price Regulations 2.3.7.1 Telephony Services Pursuant to the provisions in GSM Concession Agreements, which was signed between mobile network operators and the Authority, mobile operators submit their end-user tariffs to the Authority before their launch. The tariffs should be compatible with and should not exceed the price ceilings (maximum values) for retail tariffs being approved by the Authority. On August 2014, ICTA took a decision that Avea shall be exempted from the retail price cap obligation. ICTA’s decision was based on an earlier decision by the State Council. Mobile 47 Electronic Communication Services Price Ceiling Chart have been approved twice during 2015 (March and September). To be valid from the November 1st 2015, there have been some changes in the level of price ceilings compared to the previously approved price ceilings. As follows, the upper price limits of ‘Name/Title Change’ was decreased from 17,57 TL to 6 TL per transaction, upper price limits of ‘Number Change’ was decreased from 52,69 TL to 20 TL per transaction, upper price limits of ‘SIM Card Change due to Loss, Theft, User Failure’ was decreased from 43,90 TL to 20 TL per transaction and ‘SIM Card Change Under Warranty’ transactions was made free of charge. The mobile operators notify their tariffs and campaigns at least 7 days prior to their entry into force. Besides, with the Board Decision dated 14.07.2015 and numbered 2015/DK-ETD/324 “Tariff Notification Procedures and Principles for Mobile Electronic Communications Services” was updated. As a result of this decision, tariffs and campaigns notification can be made electronically. 2.3.7.2 Regulation Regarding Tariff Comparison Websites The obligation, which has been introduced for each of the mobile and fixed telephony operators to launch a web site which provides a platform for the consumers to compare their tariffs by entering their usage profiles in order to make the tariff selection easier and more accurate for the consumers in 2012. The framework and the content of the web sites were determined by the Authority and the operators have prepared the web sites accordingly. The obligation has been extended to include the promotional offers of the operators. Therefore the comparison websites were reviewed in 2015. These sites are planned to be launched for the use of consumers after the test stage of the web sites are completed. 2.3.8 Accounting Separation and Cost Accounting Electronic Communications Law No. 5809 has a specific provision regarding to accounting separation and cost accounting whereby ICTA has been empowered to impose accounting separation and cost accounting obligation to the operators having SMP in the relevant markets. While By-Law on Access and Interconnection includes some general provisions, Principles and Procedures Regarding Accounting Separation and Cost Accounting (Board Decision, numbered 2013/DK-ETD/557, dated 21.10.2013) sets the detailed terms regarding the issue. 48 In the current situation, SMP operators which are subject to accounting separation and cost accounting obligation (Avea, Turkcell, Türk Telekom and Vodafone) prepare and submit their accounting separation reports to ICTA according to mentioned Principles and Procedures. These reports are subject to detailed analysis of ICTA. The accounting separation reports were submitted by the relevant operators in 2015. Besides, the information and documents regarding the variables to be used in the calculation of Weighted Average Cost of Capital (WACC - the ratio to value the cost of capital in accounting separation reports) are submitted to ICTA by the obliged operators every year. Then, ICTA either defines WACC ratios for those operators or lets the operators define their WACC ratios pursuant to the Principles and Procedures. 2.4 Competition Regulations and Activities 2.4.1 Margin-Squeeze Remedy and Procedures & Principles Regarding Determination and Remedies of Margin Squeeze In order to create effective competition in the sector and to prevent price-based anticompetitive conducts by ensuring that the relevant tariffs do not lead to margin squeeze, within the context of Market for Call Origination on Fixed Telephony Networks, Margin Squeeze Remedy was imposed on fixed incumbent (SMP operator) Türk Telekom who still keeps its position of vertically integrated in the market, with ICTA Board Decision No. 2014/DK-SRD/171 and dated 26.03.2014. In the context of Procedures and Principles Regarding Determination and Remedies of Margin Squeeze, which lays down the principles that apply to the said (margin squueze) remedy, was entered into the force by 01.07.2014 with ICTA Board Decision No. 2014/DK-SRD/332 and dated 26.06.2014. The margin squeeze tests must be performed at least at the end of every quarter unless otherwise determined by the Authority by taking into account the “flagship products” on the basis of the reports that include necessary information (including income, traffic, subscriber number, etc.) to be submitted monthly by Türk Telekom to ICTA as a general and primary rule. Within the scope of this remedy, in the course of the year, 2015, the margin squeeze tests were performed at the end of every quarters. 49 2.4.2 Market Analysis Regarding the regular market analysis, EU Funded Project (IPA) titled “Technical assistance for achieving the information society and stimulating high-speed broadband services to the benefit of consumer” is being carried out. The project includes improvement of cost models, reference offers and market analyses within the EU regulatory framework and national legislation. The project also includes a report on preparation of a concise national broadband plan and the study related to market analyses are being carried out in this context. 2.5 Postal Sector Regulations The new Postal Services Law numbered 6475 (the Law numbered 6475) has been enacted by the publication in Official Gazette dated 23/05/2013 and numbered 28655. According to the Law numbered 6475, regulation and supervising tasks related to the postal sector are given to ICTA. 2.5.1 Authorization of the Postal Service Providers According to Law numbered 6475, equity companies wishing to obtain authorization licences apply to the Authority within the context of relevant provisions of "Authorization Ordinance on the Postal Sector" which was published in the Official Gazette on June 06, 2013 since those companies are required to be authorized by the Authority. As of 31/12/2015, 21 equity firms (including PTT) in nation-wide and 5 equity firms in county-wide have been authorized by the Authority for the provision of postal services. 2.5.2 Determination of the basic tariff Basic tariff, which is defined as the fee of domestic items of correspondence at minimum weight, have to be determined by the Authority pursuant to the Law. In this context, by the Board Decision 23/07/2015 No. 2015/DK/347, the basic tariff was revised as “1,40 TL (18% value-added tax included)” to be effective from the date of 03/08/2015. 50 3 TECHNICAL REGULATIONS 3.1 Spectrum Management Regulations and Activities 3.1.1 Transactions of Imposition, Notification and Accruement Transactions of imposition of the authorized operators in the scope of responsibilities and duties of Department of Spectrum Management, Transactions of imposition, notification and accruement of the temporary permissions given for testing-demo in the scope of responsibilities and duties of Department of Spectrum Management and Licenses and Agreements, Transactions of imposition, notification and accruement regarding the radio and TV broadcasters, Giving opinion regarding the transactions of imposition of radio communication users in the scope of responsibilities and duties of regional directorates have been conducted in 2015. 3.1.2 Public Access Mobile Radio (PAMR) The organizations which applied for installing and providing analog and digital Public Access Trunk/Tetra and Community Repeater Service / DMR (Digital Mobile Radio) throughout Turkey, of the ones which were authorized in accordance with frequency demand the related legislation, applications have been evaluated during the year 2015. Currently, there are 86 PAMR operators which serve on the VHF and UHF frequency bands throughout the 51 country for regional and local levels. And, frequency demand applications of the PAMR operators have been continued today. It has been recognized that some public agencies and establishments have not any provision authorizing them to offer electronic communication service and/or install networks and infrastructures related their services. So, revision of By-Law On Procedures And Principles About Radiocommunication Systems No:27291 dated and named 17.07.2009 was completed taking into account possibilities of these agencies and establishments to not apply for renewing their licences or experience difficulties from operators to get neccessary services and it was published. Also, licences of them were renewed until end of 2015. Spectrum Department, taking into account applications that Mayoralties, İrrigation Corporations and some establishments that their licence expired and conducted to PAMR operators making an agreement with their infrastructures to get service from PAMR operators. Provided that the acceptance of conditions, demands of municipalities consisting conditions have been evaluated as appropriate. It is still continue these applications and evaluations. Also, this implemention has been made for Irrigation Corporations within this context too. It was allocated frequencies of campanies which their licence expired and conducted to PAMR operators making an agreement with their infrastructures to get service such as electricity transmission, electricity distribution and electricity production campanies, mininig and coal campanies. 3.1.3 Temporary Allocation Issues Applications for installing and providing wireless systems via Foreign Minitry by Diplomatic Offices, international organizations and representatives of foreign countries demand for use their wireless equipment/systems during visiting our country have been evaluated and their licences have been given. 52 Within this context, licences of many foreign state representatives were given for wireless equipment which they use during visiting our country by allocating frequency. Also, licences of all country delegations attended “Summit G20” for their equipment were given by allocating frequency. Some temprorary frequency assingnments have been done for varius sportive activities and races or ect. organizations. Temporary satellite up-link device using permissions were given to many foreign press and TV companies. 3.1.4 Notification Form (Class 2) Due to the Board Decision of ICTA dated 17.04.2006 and numbered 2006/TK-13/260, regarding the prerequisites sought in manufacturing and importation of Radio and Telecommunication Terminal Equipments, the responsibility of the assessments and approval transactions in terms of frequency band, output power and antenna information using Notification Form (Class 2) has been conducted in the year 2015. In this context, the devices which have restrictions on their frequency bands and licenses have been evaluated according to the annual Ordinance published by Ministry of Economy, by Spectrum Management Department. 53 Statistical information about the transactions performed in between 01.01.2015 and 31.12.2015 is shown in the Table 9 below. Table 9: Statistical Information for Notification Form (Class 2) Number Of Documents Applıed Number Of Devıces Approved Number Of Devıces Not Approved, No Need To Approve Average Number Of Documents Assessed Monthly Number Of Personnel Assessıng The Forms 591 373 218 49 3 Figure 37:Notification Form (Class 2) Monthly Application Statistics for 2015 Devices approved in scope of Notification Form (Class 2) are updated at the official website of the Authority. http://www.btk.gov.tr/tr-TR/Sayfalar/Sinif-2-Bildirim-formu-Uygulamalari 3.1.5 Maritime Communication Systems The maritime communication related Agenda Items of the WRC-15 conference are studied and considered having regard to benefits of Turkey. World Radiocommunications Cenference was held on 02-27 November 2015 in Geneva /SWITZERLAND and it has been participated. 54 Due to the protocol that was signed with Directorate General of Coastal Safety/Directorate of Radiocommunication (KEGM/TİM) in accordance with Electronic Communication Law Articles 42, 43 and Temporary Article 4, various works were done regarding the maritime communication systems. According to this protocol; Frequency assignments were done from maritime VHF/FM band to the related maritime companies regarding the applications done by KEGM-TİM. Additional sea craft sign block and MMSI have been assigned upon the request made by KEGM/TİM. About maritime systems, the information received from KEGM-TİM every month about ships which have been made modifications, newly registered and cancelled are sent to ITU and the ships were registered to international ship lists. Furthermore, list of Coast Stations and Special Service Stations (List IV) Edition of 2015 has been reviewed and Turkey data notified to the International Telecommunication Union Radiocommunication Bureau-ITU/BR. Besides, participation was provided to international exercises, meetings and conferences related to the task of ICTA. 55 3.1.6 Satellite Systems International Frequency Coordination Activities International frequency coordination for the GOKTURK 1, GOKTURK, TURKSAT Satellite Networks and the corresponding terrestrial systems is carried out by the studies in the presence of ITU and the related countries according to the procedures of Radio Regulations. 3.1.7 Aeronautical Communications Systems 297 frequency assignments have been made in 2015 from aeronautical band to the related airline companies regarding the applications done by Directorate General of Coastal Safety/ Directorate of Radiocommunication (KEGM-TİM) and to General Staff. Assigned frequencies were registered to ICAO/COM Tables (COM 2, COM 3, COM 4) by ICAO/FMG (International Civil Aviation Organization/ Frequency Management Group) in coordination with Directorate General of Civil Aviation in accordance with international rules and frequency coordination. 56 3.1.8 Radio/TV Systems 3.1.8.1 Studies Pertaining to 694-862 MHz Frequency Band Currently, 470-790 MHz part is allocated to the broadcasting service on a primary basis in Turkey and 790-862 MHz part of UHF band (470-862 MHz), has been allocated the other than broadcasting services including mobile services in the National Frequency Plan. The part 694-790 MHz of the mentioned band has been allocated to the mobile services (except aeronautical mobile services) as primary basis at the ITU World Radiocommunications Conference (WRC-15) held in Geneva on November 2015. Depending on international developments, aiming usage of 694-862 MHz frequency band for mobile services in also Turkey, required studies have been carried out by the Authority. 57 3.1.8.2 International Frequency Coordination Process of Terrestrial Digital Television Systems National Terrestrial Digital Television Frequency Plan completed by RTÜK has been submitted to ICTA for international frequency coordination process. In accordance with Geneva 2006 Agreement (GE06), the studies concerning international frequency coordination for frequency assignments or frequency allotments to the television broadcasting stations appearing or not appearing for Turkey in the GE06 Terrestrial Digital Television Plan in the frequency range 470-790 MHZ have been carried out in coordination with RTÜK. The studies pertaining to objections to assignments registered in ITU/R records received from the other countries for these notices are going on. Concerning frequency coordination request of the other countries for their radio and television systems, necessary process has been made for both direct request from countries and ITU/R BRIFIC records. 58 3.1.8.3 Extension of Time for The Use of Radio-link Used by Radio and Television Broadcasters Concerning the extension of time demand of radio and television broadcasters using radio link, a coordination meeting has been held. Following this, radio and television broadcasters are provided to use radio-link under the conditions specified by Board Decision dated 23.12.2015 and numbered 2015/DK-SYD/544 until the end of 2016. 3.1.9 Other Frequency Assignments As part of frequency assignment activities following issues has been done in 2015: Some frequency assingnments have been done related to test and trial permission. Some frequency assingnments have been done for General Staff’s military needs. R/L (Radio link) frequency assignments of about 2000 links were made to some Governmental bodies and operators. A study for updating the R/L Frequency Plan was conducted. 59 3.1.9.1 450-470 MHz Frequency Band The use of 452-457 MHz/462-467 MHz frequency range by Directorate General of Security was extended up to 31/12/2020 based on the decision dated 19/11/2015 and numbered 2015/DK-SYD/507. 3.1.9.2 Update of the Frequencies Bands Assigned to Turkish Armed Forces NJFA 2014 identifying NATO harmonized band has come into force as of 19/02/2015, in the context of this agreement harmonization studies of military frequencies were studies and it is planned to finalize this study until the end of first half of the year. 3.1.9.3 Frequency Coordination Activities with Neighboring Countries In order to release 700 MHz frequency band to mobile broadband services, the frequency coordination agreement with Ukraine was signed in the last day of WRC-15. In order to overcome electromagnetic interference issues at the border area between Turkey and Iran, a meeting was held in Tehran/Iran in 8-9/03/2015. The studies have been carried on in this regard. 60 3.1.10 National Monitoring System (NMS) Activities The duties of the Authority that are described in Electronic Communications Law No 5809 are the supervision of the installation and the operation of the radio equipment and systems according to the techniques and the orders, monitoring and supervision of the spectrum including detection and elimination of Electromagnetic Interference (EMI). Within these duties NMS has been used effectively to provide; an efficient and effective usage of spectrum effectively and efficiently as a scarce resource, detection and elimination of electromagnetic interference and the duties given to the Authority by Law. NMS consists of one National Control Center installed in Ankara and seven Regional Monitoring Centers (RMC) and quite a few fixed and mobile monitoring stations. Figure 38: Components of NMS The capabilities of NMS are; to analyse the used frequencies, detection of electromagnetic interference, checking the technical parameters of licensed and unlicensed radio stations, confirming the unauthorized usage and spectrum occupancy of dedicated frequencies. The frequency range of NMS is 10 kHz to 2.5 GHz. 61 To be able to continue more efficient Spectrum monitoring and inspection activities within NMS, it is necessary to purchase a service for maintenance and operational support of all components (hardware, software) of fixed and mobile stations in NMS. This purchasing of service for maintenance and operational support is provided by tender for each year. 3.1.11 Revision of MOBDF and NMS Modernization In order to update of components, software and hardware for a mobile statiton of NMS according to today’s conditions and requirements, a new study for new prototype mobile station development project has been completed. This new designed prototype mobile direction finding station is working between 20 MHz and 6 GHz. Within this new MOBDF, operating frequency range of NMS has been increased to frequency 6 GHz. Preparatory work for NMS modernization according to today’s conditions is still being carried out at present. 62 3.1.12 Electromagnetic Field Measurement Authorization Certificate 5 new pieces Measurement Authorization Certificate were given, 18 pieces Measurement Authorization Certificate were renewed. 3.1.13 Revising the By-Law on determination, control and inspection of the limit values of electromagnetic field strength from the electronic communication devices according to international standards The By-law5 relating to determine changes in the device and the frequency range and was published in Official Gazette No. 29265 on date 12/2/2015. Similarly, the Council of State, 13. Agency decision is made in accordance with the required changes was published in Official Gazette No. 29497 on date 9/10/2015. 3.1.14 "Communique on Acquiring Quality of Service Criteria of 3G Mobile Communication Service" Quality of service criteria and related target values have been determined in order to ensure a service in national and international quality standards for 3G service in areas where liabilities of coverage for 3G ( IMT-2000 / UMTS) operators completed based on By-Law6 and Concession Agreement. In order to determine the principles and procedures for obtaining these criteria "Communique on Acquiring Quality of Service Criteria of 3G Mobile Communication Service"7 was published in the Official Gazette. 3.1.15 Updating the By-Law on Procedures and Principles Regarding Design, Installation, Sharing of Cellular System Antenna Facilities A working party started to work on updating the By-Law on Procedures and Principles Regarding Design, Installation, Sharing of Cellular System Antenna Facilities in accordance with the obligations in the Right of Use Authorization License Relevant to IMT Services and Infrastructures, demands of the sector and the experience gained. Law No:27912 dated 21.04.2011” “By-Law of Quality of Service in Electronic Communications Sector” was published in the Official Gazette dated 12.09.2010 and no. 27697. 7 "Communique on Acquiring Quality of Service Criteria of 3G Mobile Communication Service" was published in the Official Gazette dated 16.02.2015 and no. 29269. 5 6 63 3.1.16 Performing Studies to Extend Mobile Coverage Areas 3.1.16.1 GSM coverage expanding studies in rural areas Within the studies carried out together with Ministry of Transport, Maritime Affairs and Communications-Directorate General of Communications and GSM operators, GSM coverage expanding and improvement studies in areas which are especially rural and do not have GSM coverage have continued during the year of 2015. Within this scope, the studies according to the agreement signed between Ministry of Transport, Maritime Affairs and Communications-Directorate General of Communications in order to offer coverage in residential areas (Figure 41) which are populated less than 500 and do not have GSM coverage with Universal Service Fund is being followed. Figure 39 :Settlements that offered coverage by Universal Service Fund Besides, Ministry of Transport, Maritime Affairs and Communications-Directorate General of Communications has launched a new project in the scope of Universal Service in 2015. The aim of this project is to ensure mobile internet services for the settlements that are in the previous project and the settlements that have request and complaints. A working party was established for this reason and it is supported on behalf of the Authority. 64 3.1.16.2 GSM Coverage Measurements Field tests were conducted with our staff and set of measurements in different settlements according to the demands and complaints related with GSM coverage problems. In this context, field tests were conducted in residential areas connected to İstanbul, Sivas, Konya, Yozgat, Adana and Antalya cities in 2015 and the data that was obtained by measurements was analyzed and reported. 3.2 Information Technologies Activities 3.2.1 Electronic Signature As of the end of November 2015, five (three in 2005, one in 2006 and one in 2012) Electronic Certificate Service Providers (ECSP) were authorized according to the Law on Electronic Signatures No 5070 and the number of qualified electronic certificate generated by ECSPs in Turkey is 1.991.132. 333.746 of these certificates are revoked, 638.515 number of them have expired and 114.582 of these certificates are suspended. As of the end of November 2015, the number of active qualified electronic certificates is 904.289 in Turkey. 874.830 of them are used for electronic signature and 29.45 of them are used for mobile electronic signature. With the Article 15 of the Electronic Signature Law No. 5070, the task of the inspection of Electronic Certificate Service Providers’ operations and transactions regarding the implementation of the Law was given to ICTA. In this context an audit started on EBG Information Technologies and Services Corp. (e-Tuğra) in 2014 and completed in 2015. The audit processes started in 2015 on TürkTrust Information Communication and Information Security Services Corp. and Electronic Information Security Corp. (E-Güven) are continuing and audit process on TUBİTAK-UEKAE (Governmental Certification Center) completed in 2015. Between the dates 16-17 March 2015 a TAIEX workshop organized about interoperability between REMSPs, applications about REM and E-signature and sharing experiences about international standards with the participation of experts from the EU, Registered Electronic Mail Service Providers (REMSP), ECSPs and entities operating in the electronic signature and registered electronic mail market. 65 In 2015 participation was provided to conferences, seminars and meetings in order to increase the awareness about electronic signature, courses have given to the relevant personnel of public institutions and public organizations and supports have given to the trainings organized by Public Administration Institute for Turkey and Middle East (TODAİE). 3.2.2 Internet Domain Names By the Article 35 of Electronic Communications Act, designation of the organizations or institutions which shall carry out registration of internet domain names, and the principles and procedures concerning the management of domain names shall be determined by the Ministry of Transport, Maritime Affairs and Communications. Also, by the Article 6 of the mentioned Law, Authority is entitled to fulfill the duties entrusted with the Authority by the Council of Ministers, the Ministry and/or the Cyber Security Board in respect of the matters concerning cyber security and internet domain names by means of the Presidency of Telecommunication and Communication or by means of other units/departments of the Authority. By-law on Internet Domain Names8 was put into force by the Ministry. In this regard, Authority is entitled to set up and operate “.tr” Network Information System (TRABİS) or to have a third party for setting up and operate TRABİS within the framework of the principles and procedures determined by the Authority. With the activation of TRABİS, domain name allocation will be carried out in a more transparent and competitive environment. Also disputes concerning domain names will be solved in a short time by alternative dispute resolution mechanism. It is planned to increase the number of domain names with the launch of “.tr” flat names. 8 By-law on Internet Domain Names that was published in the Official Gazette No. 27752 dated 7 November 2010 66 After the re-delegation of “.tr” Country Code Top Level Domain (ccTLD) by Internet Corporation for Assigned Names and Numbers (ICANN) and transferring the data in Nic.tr, TRABİS system will be activated. In this respect, administrative and legal process regarding the re-delegation of the domain name management is still going on. 3.2.3 Registered E-Mail System With the second paragraphs of Article 1525 of the Turkish Trade Law No. 61029 the task of determining the principles and procedures relating to Registered email system rights, obligations, authorization, and supervision of registered e-mail service providers (REMSP), rights and obligations of individuals, businesses and companies regarding to REM, transactions using REM and their results was given to ICTA. Potential REMSPs applied to ICTA and their applications were evaluated in the framework of regulations relating to the REM system. eFinans Electronic Commerce and Information Services Corp. was authorized on 5 February 2015, KepKur Software, Information Technologies, Registered Email Services Corp. was authorized on 11 September 2015 and F.I.T. Information Technology Systems and Service Inc. was authorized on 11 September 2015 by the ICTA as REMSP. Studies have started to interoperate new REMSPs in REM system. Article 26 titled as “Inspection” of the Ordinance on the Procedures and Principles Pertaining to the REM System which is published regarding to the Article 1525 of the Turkish Trade Law No. 6102 has provision of “The Authority can inspect or made inspected whether or not REMSP provides a proper service in accordance with this By-law at least once every two years with its own initiative or upon complaint thereunder By-law on The Principles and Procedures of Information Technologies and Communications Authority’ Inspection Activities which is prepared based on Article 6 and Article 59 of the Electronic Communications Act No. 5809.” In this context the audit processes started in 2015 on The General Directorate of 9 “Turkish Trade Law” published in the Official Gazette No. 27846 and dated 14 February 2011 67 Post and Telegraph Organization (PTT), TNB Registered Electronic Mail Service Provider & Trading Inc. and TÜRKKEP Registered Electronic Mail Services Inc. are continuing. As of the end of November 2015, the number of REM account number has reached to 136.305 in Turkey. In addition, in 2015 participation was provided to conferences, seminars and meetings in order to increase the awareness about registered electronic mail, courses have given to the relevant personnel of public institutions and organizations and supports have given to the trainings organized by TODAİE. 3.2.4 Network and Information Security International security standards were examined and the awareness of the sector regarding security standardization were raised as part of the activities of security group which is one of the standardization working groups consist of representatives from ICTA, manufacturers, importers and operators, A workshop about security standards was organized in 12-13 May 2015 with the participation of national and international experts. In the meeting of ITU-T SG17 which was held in September, a proposal document for the draft recommendation on security assessment techniques in telecommunication/ICT Networks (X.samtn) was submitted. The report titled “Network and Information Security in Electronic Communications Sector: Evaluation on Scope and Application of the Regulations” was written. In the report, basic information security concepts were mentioned and network and information security practices of various countries were analyzed. Additionally, history and current situation of the relevant regulations were explained and applications of the operators were evaluated. As part of the 2015 Inspection Plan, 8 operators were inspected in order to control their status of conformity to requirements defined in “By-Law on Network and Information Security in Electronic Communications Sector”10. The reporting process regarding these inspections was completed. “By-Law on Network and Information Security in Electronic Communications Sector” published in the Official Gazette dated 13 July 2014 and numbered 29059 10 68 3.2.5 Cyber Security 3.2.5.1 Awareness Raising Programs A protocol was signed between ICTA and Microsoft on 29/05/2015. The protocol will be held on cyber security with various purposes such as increasing cyber security awareness, ensuring use of the Internet in a secure manner, reducing the bad effects of cyber incidents, making contributions to internet literacy and education. Within the scope of protocol, awareness activities for end users are planned in 2016. Security Standards working group has been established in cooperation with operators in coordination of ICTA. Raising awareness of the operators and making contributions to security standards that are being studied within ITU-T are main objectives of the working group. In this context, regular meetings are conducted with operators and opinions which have prepared related standards has been conveyed to ITU. 3.2.5.2 Cyber Exercise Crisis Management Exercise is being held every year by NATO and other countries. At the NATO CMX-2015 exercise which was held on 4th to 10th of March 2015 in Ankara, according to the generic scenario against conventional and cyber attacks targeting NATO member countries, principles of the Alliance at crisis management were evaluated and Alliance's conventional reactions against cyber attacks were examined in detail. ICTA has participated to this exercise as player. Within the scope of the exercise, preparations against cyber attacks targeting civilian infrastructures and essential services were requested by NATO. In this context, National CERT and Institutional CSIRT which are under ICTA were informed about being prepared against cyber attacks. In addition, by establishing inter-agency coordination countermeasures were performed and information flow has been provided. Also, Stars War Games 2015 exercise was performed between 07-15 / 5/2015 in Istanbul. ICTA participated to this exercise as observer. 69 Within the Sectoral Cyber Security Exercise preparations, with the participation of representatives from Institutional CSIRTs Sectoral Working Group was established. In coordination with this group, meetings have been made and scenarios were prepared. 3.2.5.3 Preparation of Procedures and Principles for Sector Specific CSIRT In the electronic communications sector, studies were initiated to determine the procedures and principles for sector specific CSIRT and a draft regulation has been prepared in this context. 3.3 Market Surveillance Activities on Radio and Telecommunicaitons Terminal Equipment 3.3.1 Harmonised Standards In the scope of R&TTE (1999/5/EC) by-law, the Communique (no 2012/1) that is prepared to publish the list of the harmonized European Standards and corresponding harmonized national standards entered into force on the date of the date of July 3rd 2012. However, it is needed to be revise the respective Communique by the reason of updating regularly of harmonized standards list which was published in European Union Official Gazette and publishing by preparing these final list of harmonized national standards which is corresponding harmonized standards by the Turkish Standards Institute (TSE). In this context, the Communique of the Standards Referenced in Radio Telecommunications Terminal Equipment (2015/1) by-law was published in the Official Gazette dated on 20.11.2015 and entered into force at the same time. 3.3.2 Market Surveillance Laboratory ICTA Market Surveillance Laboratory which began serving in 2007 established its quality system in accordance with the "TS EN ISO / IEC 17025 General Requirements for the Competence of Calibration and Testing Laboratories" standard Turkish and was accredited Accreditation by Agency (TURKAK) on 28th April 2009. 70 Currently, “market surveillance and inspection (MSI)” activities conducted for “radio and telecommunications terminal equipment (R&TTE)” and testing of sample devices with the demands of third party devices are carried out in EMC (Electromagnetic Compatibility), RF (Radio Frequency), LVD (Low Voltage Directive) and SAR (Specific Absorption Rate) laboratories. 3.3.2.1 Accreditation of Market Surveillance Laboratory and Calibration Process of the Equipment ICTA Market Surveillance Laboratory was re-accredited by Turkish Accreditation Agency (TURKAK) with TÜRKAK Accreditation certificate dated 23rd August 2013 and numbered AB-0259-T with the purposes of having international validity for tests and experiments and getting higher reliability for test results. Second surveillance audit which should be done every year for the necessity of accreditation was performed on September 30th, 2015. Laboratory units and staff were examined during the audit. Compliance of test and experiment activities that EMC (Electromagnetic compatibility), RF (radio frequency), LVD (Low voltage directive and safety) and SAR (Specific absorption rate) to the relevant standards was audited on site. Additionally, applied methods, test records, calibration status of the equipment used in tests and similar issues are controlled. 3.3.2.2 Inter-laboratory Comparison (ILC) Tests and Proficiency Testing (PT) ILC tests were carried out in 2015 with the participation of VESTEL for EMC and RF tests, and ELDAŞ and EMİTEL-TR for LVD tests. Relevant calculations were made on the results obtained from these tests and the reports were sent to the participants. 71 Proficiency tests by comparison are performed with related laboratories in certain intervals. In this scope, ILC tests were performed with the EMC and RF laboratories of VESTEL in a total of three test categories and the results of all tests were determined as appropriate. For LVD tests, three safety ILC tests were performed on a DECT phone sample by the agreements with Emitel-TR A.Ş. and Eldaş Test and Calibration Center and the results for all tests were found to be appropriate. 3.3.2.3 Testing Activities In 2015, 168 qty of equipment in EMC laboratory, 12 qty of equipment in RF laboratory, 149 qty of equipment in LVD laboratory and 70 qty of equipment in SAR laboratory were tested. 72 Figure 40 : Total Number of Devices and Applied Tests Table 10: Total Number of Tested Devices APPLIED TESTS IN 2015 PGM GSM DECT PSTN PMR Other Smart Watch DECT Baby Monitor Other Distribution of Tested Devices Number of Tested Devices EMC 168 RF 12 LVD 149 SAR 70 - Number of Applied Tests EMC 358 RF 110 LVD 1089 SAR 650 - EMC 158 1 3 6 - RF 10 2 - LVD 135 1 3 10 6 SAR 68 2 - - - 4 - - - - - 6 - - 2 - - - - At least one or more tests have been applied in each laboratory for each device. In this context, a total of 2207 tests were applied in 2015 including 358 EMC tests, 110 RF tests, 1089 LVD tests and 650 SAR tests and the results of these tests were reported. 73 3.3.2.4 New Test Instructions and Other Issues SAR-body test instruction relating to the testing of the SIM carded-Tablet PC has been prepared after completing the research and investigations of applications regarding SAR body tests in the scope of TS/EN 62209-2 standard for performing market surveillance and inspection of SIM carded-Tablet PC devices which is one of the devices that are held close to the body. Additionally, SIM carded-Tablet PC devices tests and USB Data Modem devices tests were accredited with the 2015 Accreditation audit. Battery test equipment were purchased in the context of performing safety tests regarding batteries used in ICT devices. It is aimed to perform relevant tests as a result of examining and assessing of the battery test standards. 3.4 Technical Regulations and Activities Relating to the Electronic Communications Sector 3.4.1 Communiqué on Enhancement of Communiqué on Quality of Fixed Telephone Services By publishing in the Official Gazette with no of 28889 and date of 21 January 2014, it entered in the force, By-law on Enhancement of By-law on Quality in Electronic Communications Sector. On the other hand, the need of enhancement of the by-law is initiated in the request of service providers and the difficulties experienced in its implementation. In this context, after rigorous hard work, it is finalized by publishing it in the Official Gazette with no of 29548 and date of November 30, 2015. 3.4.2 Communiqué on Enhancement of Communiqué on Quality of Internet Service Providers’ Services By publishing in the Official Gazette with no of 28889 and date of 21 January 2014, it entered in the force, By-law on Enhancement of Bylaw on Quality in Electronic Communications Sector. On the other hand, the need of enhancement of the by-law is initiated in the request of 74 service providers and the difficulties experienced in its implementation. In this context, after rigorous hard work, it is finalized by publishing it in the Official Gazette with no of 29548 and date of November 30, 2015. 3.4.3 Electronic Communications Infrastructure Information System (ECIS) Software It aims collecting of our country’s information about electronic communication infrastructure in one center, displaying this information in a Geographical Information Systems (GIS) based map, contributing to the effective and quickly implementation of processes related to the right of way and facility sharing, instant monitoring of processes of right of way, keeping inventory information of disaster and emergency communications, assisting in determining policy related to become widespread of broadband access within the scope of universal service and disaster and emergency communications, contributing to the decision support system of other institutions. With this project infrastructure of operators will be followed easily and it will be possible to display the instituted infrastructure with starting the operation of ECIS. On the other hand, transactions carried out between providers and operators using the right of way could be monitored and the problems about implementation of the right of way and facility sharing could be detected and solutions could be provided. The information that relevant operators have about their infrastructure was asked and several meetings were held about the project. As an output, technical specifications was prepared. 75 3.4.4 Reporting and Monitoring Fixed Broadband Service Quality with the Aid of Independent Body Currently, operators set up their test procedures and store the data in their databases according to current regulations. They quarterly reports to ICTA. Thus, it is difficult to create reliable and accurate service quality results. At the same time it is aimed to monitor the service quality by independent monitoring. employing third The party necessary studies has been done and the needed regulations have been determined. Moreover, national and international firms monitoring service quality have been contacted. Preparing the technical reference terms in order to hold the bidding process has been continuing. 3.4.5 By-law on the Determination and Auditing of Electronic Communications Infrastructure Underground Facilities Minimum Requirements The acceptance of building of infrastructure is granted according to "By-law on Passing All Forms Cable and Related Materials Used in Fixed and Mobile Communication Infrastructure or Networks through Real Estates", prepared by Ministry of Transport, Maritime Affairs and Communications. As a requirement of by-law, our Authority prepared "Electronic Communications Infrastructure Minimum Requirements" to monitor the building facilities. In this context, “Draft of By-law on the Determination and Auditing of Electronic Communications Infrastructure Underground Facilities Minimum Requirements” has been prepared. 76 3.4.6 In the Electronic Communications Sector, Coordination Studies about Next Generation Mobile Communication (5G) Technologies By our Authority, in order to encourage domestic manufacturing for new generation mobile communication system (5G), to follow up the work and activities carried out by universities, public bodies and agencies, institutes, operators, firms and other private entrepreneurs in our country, to make meetings and joint efforts, to follow along with sector the 5G studies of the international organizations such as the ITU, ETSI and with this study, in August 2015 established a working group within ICTA and this group has started to work. In addition to the studies done within the ICTA, meetings, presentations and visits have carried out with sector representatives. In the current situation, our Authority assessed the work done in our country about 5G, identifying the necessary actions and recommendations to be presented in order to progress with concrete steps are being prepared a 5G report. And also, on behalf of our country, between ICTA and the Japanese government signed a protocol for cooperation in 5G. 77 78 4. INSPECTION Regulation and inspection serve as fundamental instruments to achieve the mission of and to use the power given to the ICTA through laws. Stated in the first paragraph of Article 59 entitled as "Inspection" of Electronic Communication Law that "The Authority shall be entitled to inspect or to have third parties inspect real and legal persons which are engaged in electronic Communications sector, pertaining to the tasks prescribed by this Law on its own motion or upon notification or complaint" and in the sixth paragraph it is also stated that "Procedures and principles pertaining to the implementation of this Article shall be determined by the Authority through the By-law". By-law on the Inspection Activities of the ICTA which is published in Official Gazette dated 14/12/2011 and numbered 28142, in order to determine principles and procedures in regard to works of stated Department, relevant Department and inspectors, and Communique on Inspection Activities of ICTA. 4.1 Inspection of authorized operators and legal and real persons subject to ICTA inspection In the first paragraph of Article 59 entitled "Inspection" of Electronic Communication Law numbered 5809, it is stated that "The Authority shall be entitled to inspect or to have third parties inspect real and legal persons which are engaged in electronic Communications sector, pertaining to the tasks prescribed by this Law on its own motion or upon notification or complaint." and in the paragraph (a) of Article 29, which determines the tasks of Sectoral Inspection Department, of By-law on Organizational Structure of ICTA it is stated that "To examine and inspect all kinds of activities including operations and accounts of operators, real and legal persons and those who has test permissions within the sector in conformity with legislation" and in the paragraph 1 of Article 10 entitled "Inspection" of By-law on the Inspection Activities of the ICTA, which is published in Official Gazette dated 14.12.2011 and numbered 28142, it is stated that "The Authority may conduct inspection automatically or 79 upon any information or complaint it receives, in order to determine whether the activities are in compliance with the relevant legislation." Within the framework of these provisions, ICTA continued inspection activities in 2015. 4.2 Inspection of Operators in 2015 A total of 32 inspections have been conducted in year 2015 and among these inspections, 105 operators (same operators might be subject to different inspections, therefore number is cumulative) have been included in these inspections. One of these inspections was held as “Investigation” and the others were as “Inspection”. 22 of these inspections were planned inspections while 10 of them were unplanned. Among the inspections launched in 2014 according to the “2014 Inspection Plan”, 14 Inspections have been concluded in year 2015 and based on the number of operators 47 inspections have been held. Similarly, 4 unplanned inspections have been concluded in 2015 which have been launched in 2014. Based on the number of operators, 13 unplanned inspections have been executed (Figure 41). Figure 41 : Inspections Launched in 2015 3 inspections were concluded in 2015 which were launched in year 2013 as unplanned and hereby there is no inspection going on from 2013. Similarly 12 of 18 inspections which were launched in 2014 were concluded. 3 of that 18 inspections are at decision stage (by ICTA 80 Board) and the other 3 of them are ongoing (Figure 44). 9 of 32 inspections launched in 2015 were concluded, 8 inspections are at the decision stage and 15 inspections are ongoing (Figure 44). Figure 42 : Inspections Launched in 2013 and 2014 and Ongoing in 2015, and Inspections Launched in 2015 Consequently, out of 53 inspections that are held in 2015, 23 are concluded, 15 of them are at the decision stage and 15 of them are going on (Figure 43). Figure 43 :Inspections conducted in 2015 81 4.3 Consequences of Inspections in 2015 2 of that 3 inspections launched in 2013 and continued in 2015 were resulted imposing fines and one of them is at the decision stage. 5 of that 18 inspections launched in 2014 and continued in 2015 were resulted imposing fines, 4 of them were resulted with “Warning”s and 6 of them are at the decision stage. No infringements were found in 3 of that inspections (Figure 46). 32 inspections were launched in 2015 and 17 of them were concluded. In one of that inspections launched in 2015, infringements were detected and the matter is brought to Regional Directorates’ attention in order to impose administrative fines. In 8 of the inspections, no infringements were found, other 8 inspections are at the stage of decision. Inspections launched in 2014 and Inspections launched and completed in completed in 2015 2015 Figure 44 :Distribution of Inspections Launched in 2014 and Completed in 2015, and Distribution of Inspections Launched and Completed in 2015 A total administrative fine of 31.229.167 TL’s have been imposed in 2015. 82 4.4 Works within the context of Article 19 of the Communique on Inspection Activities of ICTA In the fourth paragraph of Article 19 entitled "Infringements which does not necessitate inspection", of the Communique on Inspection Activities of ICTA, it is stated that "If relevant department is of the view that infringement does not necessitate inspection, relevant department requests statement regarding the infringement from real or legal persons in written up to 30 days. Statement which is not presented to ICTA in due time, is not taken into consideration. Relevant department, if any, following to written statement, takes action within the framework of applicable law." Under the scope of this provision, there are 18 Board decisions resulted in administrative fines for relevant operators in 2015. In addition to that, 41 warning fines were imposed to operators and authorizations of 23 operators’ were cancelled. 4.5 Electromagnetic Interference National Monitoring System (NMS) is used for the activities about detection and elimination of electromagnetic interference. Electromagnetic interference complains that affected communication of the radio systems of the public institutions especially the ones which are serving public safety and private institutions permitted by our Authority were efficiently detected and eliminated in 2015. 83 140 120120 124124 120 100 74 74 80 63 63 60 40 16 16 20 14 14 4 4 0 DHMİ GSM Police EMI Complaint Others Emergency Military MİT Solving of EMI Figure 44 : Statistical Graphic of EMI Complaints about Apart from EMI complaints about the complaints which are about EMI of the operators having usage right and users authorized to use radio systems are detected and eliminated. Within this scope it is determined that most of the electromagnetic interferences reported to Authority and detected by the Authority are caused by Radio/TV, cordless telephones and radio systems. The statistical information about this matter is shown in Figure 48. Figure 45 : Source of EMI Complaints Graphic 84 4.6 Spectrum Monitoring NMS can be used for analyse frequencies check the technical parameters of licensed or unlicensed radio stations, detecting unauthorized use of frequencies, and also determining the intensity of use of frequencies allocated. In 2015, the various activities were carried out on the use of frequency bands and espically 4.5 G frequency bands. After detection of the use of unauthorized or non-standard system/device, use of them was stopped. By making required operations like this study, it has been provided for operators and users to use clean frequency without any interference by. In addition, for the effective and efficient use of the frequency spectrum which is scarce resource, study of the frequency spectrum occupancy was done. For especially interference free usage of allocated frequency bands of 4.5 G (800 MHz, 2100 MHz, 2600 MHz), monitoring studies were carried out. Figure 46 : Screen of Analyse Frequencies 85 4.7 Continuous Monitoring System of Electromagnetic Fields Continuous monitoring system of electromagnetic fields (ESIS) is a Project that makes long-term measurements (7 days/24 hours) for the monitoring of electromagnetic fields (EMF) in the selected areas which have multiple base stations and high population (such as school, hospital, kindergartens, apartment) buildings in order to show whether EMFs are under control according to the limits of international standards. The purpose of this project is to provide for the general public clear and easily available data concerning electromagnetic field levels simultaneously in the form of results of continuous measurement on a specially prepared web site (www.ema-olcum.btk.gov.tr) of ICTA. Web site of ESIS (www.ema-olcum.btk.gov.tr) has been opened to our people on January 6, 2014. Initially, 10 pcs of measuring devices in Ankara and 5pcs in İzmir was installed near multiple base stations of selected areas. One of measuring device in Ankara was removed and installed in İstanbul,Taksim Square in July 2014. The system continues to work. Figure 47: Operation of Continuous Monitoring System of Electromagnetic Fields System 86 4.8 The Inspection Activities on Market Surveillance The market surveillance activities are carried out by the Authority based on the provisions of the Law numbered 4703 and the Law numbered 5809 in order to ensure that the radio and telecommunications terminal equipment are compliant with the technical regulations defined by the Authority and with the related safety rules. The authorized personnel participates the inspections throughout the year in this respect. The inspections are conducted in accordance with the inspection plans and spontaneously when needed. Furthermore, the complaints and denunciations are taken into consideration in determination of devices to be inspected. 374 companies and 1222 devices were inspected in the scope of market surveillance activities in 2015. Inspections were mainly performed based on the planning in 2014 while the inspections of the equipment reported by complaints and denunciations were included monthly plans. 268 non-compliant equipment have been reported as the results of those inspections. Additionally, 260 sample devices were taken to be tested in the laboratory. The data related to the inspections, samples and non-compliances including the inspected device groups are summarized in the following Table 11: Table 11:The Device Groups in the Market Surveillance Inspections in 2015 DEVICE GROUPS Mobile Handsets Short Range Devices WEARABLE WATCHES DRONE Tablet PC PSTN Terminal Equipment DECT Terminal Equipment PMR 446 Radio Baby Monitor Radio Equipment IP Terminal Equipment FM Transmitter Navigation Equipment Telemetry Equipment TOTAL NUMBER OF INSPECTIONS 520 287 32 17 161 22 38 30 40 22 1 18 34 -1222 NUMBER OF NON SAMPLES TAKEN COMPLIANCE 224 26 2 105 14 26 6 10 -46 -3 3 4 -7 11 14 -8 ---5 -14 --260 268 87 It can be seen in the above Table 11 that the biggest group of inspected devices is mobile handset group having 520 members. Furthermore, the number of inspections on tablet PC and short range devices are noticeably high. Based on the inspections conducted in 2015, administrative fines of a total of 411.655 TL for 22 equipment types were applied to the producers of equipment due to the lack of information and certificate including technical documentation and non-compliance with the essential requirements after the laboratory tests. 4.9 The Inspection Activities on Safer Internet Service The on-site inspection activities were realized to control the service of internet service providers which are obliged to give safer internet service if they provide the services precisely within the scope of “The Principles and Procedures for the Safer Internet Services” and to measure their service quality. 88 5. REGULATIONS AND ACTIVITIES ON THE RIGHTS OF CONSUMERS 5.1 Processing of Personal Data and Protecting the Privacy Turkish Constitutional Court made a decision (09.04.2014 dated and No:E.2013/22 K.2014/74) annulling the 11 Article 51 of the Electronic Communications Law12. With this decision, the basis of By-Law on Processing of Personal Data and Protection of Privacy13 in the Electronic Communications Sector has not gone away as of 26.01.2015. In this context, changes relating to Article 51 of the Electronic Communications Law were prepared and put in force by 26.01.2015 by Grand National Assembly of Turkey. 5.2 Consumer consent about mobile data services The use of smartphones is increasing rapidly along with the use of data because of availability of various applications and content. Since smartphones are loaded with a lot of applications which require regular update using data services and consumers may not know about such use of data until most of the balance in the account might be consumed, ICTA decided to take measures about potential consumer complaints due to unauthorized or unintended mobile data usage. Board Decision dated 19.11.2015 and numbered 2015/DK-THD/510 on “Consumer Consent About Mobile Data Services” mandates mobile telecom operators to send alert to consumers who do not have data plan (except those who have data plans exhausted), immediately after they attempt to access mobile internet, in order to inform consumers about they don’t have any data plan and they will access internet only after they give their consent. Mobile telecom operators will only be able to charge these consumers for data usage only if they give their consent upon the alert. Besides, consumers will be able to activate or deactivate mobile internet service on their account through SMS, call centers, websites or agencies. 11 The article 51 of Electronics Communications Act has been annuled by the Turkish Constitutional Court with decision dated 09.04.2014 and numbered No:E.2013/22 K.2014/74, and the article 51 is rearranged on 27/3/2015 dated and numbered no 6639/31. 12 Electronics Communications Act numbered 5809 was published in the Official Gazette dated 10.11.2005 and numbered 27050. 13 By-Law on Processing of Personal Data and Protection of Privacy was published in the Official Gazette dated 24.07.2012 and numbered 28363. 89 5.3 Regulation about how to calculate prorated charges and prorated credits is in effect Based on consumer complaints related to invoices which reflect a full month of charges for a partial month of service in cases where the consumer put a request to end contract, switch to another operator or suspend the account etc, ICTA decided to regulate the way to calculate the prorated charges and prorated credits that appear on the bills. In order to protect the rights of consumers in electronic communications industry, how to calculate prorated charges and prorated credits according to the actual amount of service received rather than a standard sum is regulated by the Board Decision dated 30.04.2014 and numbered 2014/DK-THD/237 on “Regulation About How to Calculate Prorated Charges and Prorated Credits is in Effect”, which is in effect by 01.04.2015. 5.4 Regulation regarding Interrogation of the Debt and Credit Information Regulation regarding Interrogation of the Debt and Credit Information was adopted by the Board Decision numbered 2014DK-THD/466 and dated 22.09.2014 on “Regulation Regarding Interrogation of the Debt and Credit Information” and has entered into force on 02 March 2015. Later, with the Board Decision numbered 2015/DK-THD/278 and dated 27.05.2015 on “The new article was added about the Regulation Regarding Interrogation of the Debt and Credit Information” additional regulation was made about paying the debt and applying for a refund credits. The Regulation enabled subscribers to learn and pay easily the amount they owe operators and to learn and apply for a refund credits in their accounts via the agencies of operators of their websites. Additionally, citizens that have e-government password will be able to inquire and pay the amount they owe operators and apply for a refund credits in their accounts through e-government portal, but only on the condition that the operator has more than 200.000 subscribers. 90 5.5 Transactions carried out with the agency It is possible to obtain provable documents and information regarding subscriber transactions via customer services, SMS etc. from the operators. However, since subscriber transactions are processed verbally by dealers/resellers of the operators and because of the arising problems about lack of proof regarding complaints about these transactions; a need for regulation is required . In this context, a Board Decision of "Transactions via resellers" dated 05.10.2015 and numbered 2015/DK-THD/445 is adopted. According to the Decision, the operators are obliged to take proven declaration of intention regarding the transactions via dealers/resellers of the operators (tariffs/packages/value-added service purchases or changes, termination request, delivery of equipment etc.), and also obliged to give subscribers information and/or documents about the said transactions. For these practices, a period of 6 months is determined for the operators. 5.6 Communications Made For Marketing and Sexual Purpose Law on the Regulation of Electronic Commerce14 No. 6563 prepared by the Ministry of Customs and Trade was published in the Official Gazette No. 29166 and dated 05.11.2014 and has entered into force on 01.05.2015. Article 14 of the Law also makes changes on the article 50 of the Electronic Communication15 Law No. 5809. With revised articles of Electronic Communication Law, communications made by operators with their users/subscribers for marketing and sexual purposes has been regulated. In addition, secondary matters relating the issue are handled by Board Decision dated 09.07.2015 and numbered. 2015/DK-THD/313 on “Regulations on Unsolicited Communications” . 5.7 Activities Related to Internet Security and Internet Regulations Alongside the developments of the internet, malicious uses of the internet and cyber fraud are increased, too. Therefore, necessary structures should be maintained in order to provide safe, Regulatıon of Electronıc Commerce Act numbered 6563 was published in the Official Gazette dated 05.11.2014 and numbered 29166. 15 Electronics Communications Act numbered 5809 was published in the Official Gazette dated 10.11.2005 and numbered 27050, 23/10/2014-6563/14 article was made changes. 14 91 conscious and efficient use of the internet for all internet users especially for kids and young people. 5.7.1 Awareness Raising Activities In the scope of awareness activities, different awareness guide booklets and brochures were distributed to schools and different institutions on demand. For the conscious, safe and effective use of Internet, many booklets and brochures have been distributed free of charge. 5.7.2 Safer Internet Service Safer Internet Service (SIS), is a filtering system which is freely offered to internet users by the authorized Service Providers they are subscribed. It is a network level filtering system. There are 2.5 million subscribers which are currently using it. In order to protect children and young people from harmful content and enable them to use the Internet in a more secure way by Safer Internet Services. White lists and black lists are determined by Safer Internet Services and sent to CSPs periodically. Additionally we have been working with CSPs for setting out safer search engines for SIS subscribers. Safer Internet Portal For Safer Internet Service (SIS), which is freely offered to internet users by the Service Providers they are subscribed, an official promotional website on guvenlinet.org.tr is being operated. On this portal, information about SIS and awareness raising suggestions are given, also there are pages for denunciations and objections, domain name profile querying and profile test interface. Tips for Families New articles are added for the content to be richer, in addition to present articles and animations about “rules to follow while on the Internet”, “using the Internet efficiently” and 92 “awareness to malicious content on the Internet”. Over time, the number of articles will be increased and subjects will be handled more comprehensively. Domain Profile Control Interface This interface (http://www.guvenlinet.org/tr/domain_sorgula.html) lets users to query which profile a website (domain or subdomain) belongs to. Consequently, query users may report their opinions and help keeping the lists accurate. Profile Test Interface This Interface lets users to check whether their ISP’s infrastructures serve SIS well. This page (http://www.guvenlinet.org/test) tests sites from different categories and determines which profile is being applied. 5.7.3 Child and Family Profiles Criteria Working Board Activities Child and Family Profiles Criteria Working Board’s meetings are organised, recorded and reported by Safer Internet unit of Internet Department. Internet trends, website categorization criteria, view of Safer Internet Service (SIS), assessments of some objections, strategies to promote SIS are discussed in a regular board meeting. Apart from meetings, board members are consulted within the scope of SIS according to their speciality. 5.7.4 Categorization Activities Aproximately 500 thousand denunciations and objections are evaluated according to criteria determined by Child and Family Profiles Criteria Working Board. Evaluation of denunciations made to ihbarweb.org.tr portal is also continued. 5.7.5 R&D Activities To improve the quality of service and diversify options, R&D activities are performed. Safer Internet on Web Browsers Currently Safer Internet Service is held via ISP membership, and families which have single internet subscription in their house can use one profile at a time with their devices. In order to use different Safer Internet Service profiles with different computers at the same time, set profiles automatically in a hour based system, let parents to create their own 93 allowed/blocked lists for their children, force safe search in YouTube and search engines like Google, Yandex, Bing, Yahoo and test routinely whether ISPs filter websites correctly; browser plug-ins and a management module is being developed. This plug-ins will work on Internet Explorer, Firefox and Chrome which are the most used web browsers in Turkey. Beta version of the product is released and necessary enhancements are held according to feedbacks. White List Search Engine This project is being developed especially for children and it lets users to make search from only websites in SIS Child Profile and list the results in the web browser. Currently search and result listing features work practically, and for the results to be more accurate and significant some improvements still continues. 5.7.6 Internet Hotline Service Internet Hotline Service is a department of ICTA- Communications Presidency. Reports can be submitted via “www.ihbarweb.org.tr” web site, phone (166) or short message service (1199). Communications Presidency assesses the reports and performs technical and legal analysis according to the law number 5651. Notice and takedown” (NTD) is adopted as the principle methodology in order to remove the illegal content mentioned in the law 5651 without the necessity of blocking the web sites. According to the law 5651, websites may be blocked if there is a satisfactory suspicion that all of the web site contain content of the crimes mentioned in the law 5651 and if it is not possible to communicate the service or hosting provider of the content (usually when the content is not hosted in Turkey). Report Statistics Statistical information of all the reports submitted to Internet Hotline of ICTACommunications Presidency as of 31.12.2013 is shown in the graph below: 94 Total report Figure 52 from beginning to 31.12.2015: 1.049.709 250000,0 199803,0 200000,0 182645,0 156856,0 156399,0 150000,0 132133,0 103221,0 100000,0 82270,0 50000,0 33899,0 2483,0 ,0 2007(2 ay) 2008 2009 2010 2011 2012 2013 2014 2015 Figure 48: Number of Reports by Year 5.8 Mobile Device Registration System In 2015, 20.127.203 IMEIs belonging to 17.958.467 equipments were registered to Mobile Device Registration System. This registration consists of imported and manufactured devices or devices brought by individuals while returning from abroad. 95 Figure 49 : Distribution of IMEIs Registered in Mobile Device Registration System Based on number of IMEIs registered through import, there is a 2,46 % annual increase between 2014-2015. Number of IMEIs registered in 2014 was 16.743.007 while the same Figure 54 is 17.205.520 in 2015. Based on number of devices registered through importation, there is a 6,90 % annual decrease between 2014-2015. Figure 50: Number of IMEIs Registered Through Importation 96 Number of IMEIs registered was 1.633.489 in 2013 and by 34,57 % increase it reached 2.198.151 in 2015. Based on number of devices registered by manufacturers 70,23 % annual decrease was encountered between 2014-2015. Figure 51: Number of IMEIs Registered Through Manufacturing Number of IMEIs of equipments brought and registered by individuals while returning from abroad in 2014 was 610.044 and by an annual increase of 18,60 % this number reached 723.532 in 2015. 97 Figure 52: Number of IMEIs of Equipment Brought and Registered by Individuals After the change of secondary legislation regarding the registration of mobile equipment in July 12th, 2014, to a great extent, registration of mobile equipment to MDRS has been transferred to e-government platform. Following these regulations, registrations through e-government increased by 81 % from 2014 to 2015. Figure 53: Ratio of Registrations Through E-Government 98 Registrations by ICTA personnel was terminated after the change of legislation in July 12th, 2014. Number of registration documents audited by ICTA in 2015 was 42.102 which corresponds to a decrease by 85,53 % compared to previous year, thanks to change of legislation and increasing use of e-government process. Figure 54: Registration Documents Audited By ICTA Number of calls received by ICTA Call Center (Information and Notification Center) in 2015 was 571.014. Number of received calls increased by 2,96 % compared to previous year. Figure 55: Number of Calls 99 5.9 Consumer Complaints In 2015, 91.431 consumer complaints were received by ICTA. Considering 72.311 consumer complaints in 2014, there is a 26 % increase. Distribution of consumer complaints by services is given below. Accordingly; GSM, ISP and cable TV services are among those receive the most consumer complaints. Figure 56: Ranking of Complaints According to Services The ranking of complaints according to the categories is given below. Invoices, cancellations of contracts and connection problems are among those receive the most complaints. 100 Table 12: Ranking of Complaints According to the Categories Complaint Ranking 5.10 Subject 1 Invoice Objections 2 Termination /Temporary Suspension 3 Connection Problems 4 Churn Rate 5 Penalty Clause/ Withdrawal fee 6 Subscription Contracts 7 Content Service Provider 8 Service Quality 9 Transparency and Informing 10 Call Centers Right to Access to Information and BİMER Applications The number of applications for the access to information was 6.045 and the number of BİMER aplications was 26.780 in 2015. These figures represent 1,39 % and 31,27 % annual increase respectively. 101 6. INTERNATIONAL RELATIONS ICTA maintained close ties with European Union (EU) and all the international organizations including International Telecommunication Union (ITU), Universal Postal Union (UPU) European Conference of Postal and Telecommunications Administrations (CEPT), which are international and regional telecommunication organizations, in 2015, took part in the activities performed under these organizations and contributed to capacity of the Authority by transferring developments and experiences concerning worldwide technology and regulations in order to improve corporate capacity so as to perform the task of regulating the sector in more efficient and international standards as well as representation of our country in international organizations as a member administration. Besides, ICTA implemented bilateral and multilateral cooperation projects in the field of telecommunications with countries which have historical and geographical similarities with Turkey. In addition, in the field of electronic communications, ICTA has set up bilateral and multilateral co-operation projects, and organized training seminars with regulatory institutions in different countries in this context, especially for beginners and professionals working in the field of telecommunications, spectrum and information technology arrangements. 6.1 The Relations with the European Union The relations with the EU in the related areas continued in 2015 in parallel with Turkey's relations with the EU. These relations and the activities can be summarized under four main headings which are accession negotiations, meetings with the European Commission and participation in the committees, contributions related to basic documents within the context of the EU activities, and benefiting from the EU pre-accession financial and technical assistance tools. After the decision concerning start of accession negotiations with Turkey was made by the EU on October 3, 2005; 35 negotiation chapters were designated through publication of negotiating framework. In this context, “Chapter 10 - Information Society and Media”, which mostly relates ICTA because of the legislation it is responsible for, was opened for negotiations and the benchmarks of the aforesaid chapter were declared at the Intergovernmental Meeting which was held in Brussels on 19 December 2008. In line with 102 the resolution for establishment of the Customs Union between Turkey and the EU, “Subcommittee on Technological Innovations, Education and Research Programmes”, which enables bilateral meetings with the Commission side and evaluation of the issues concerning the Acquis Communitaire and annually assembles, convened in Brussels on March 26, 2015. Participation in the EU Committees is among the priority policies of ICTA. ICTA, which represents our country as an observer in Body of European Regulators for Electronic Communications (BEREC) and as a member in Independent Regulators Group (IRG), takes part in General Assemblies and Contact Network meetings of the said groups at the highest level. Dr. Ömer Fatih SAYAN, Chairman of the Board and President of the ICTA has been elected as the Vice President of Independent Regulators Group (IRG) at the Group’s General Assembly in London on 10-11 December 2015. On the other hand, ICTA made the necessary contributions to the Progress Report published by European Commission in 2015. The activities with regard to technical assistance continued in 2015 in line with the objective of ICTA on utilizing various funds and programmes of the Union in the fields which ICTA is 103 responsible for. Within the context of 2015 applications of TAIEX that is one of the short term technical assistance tools of the EU Commission and some Member Countries to assist candidate countries on the transposition of the EU legislation into the national legislation, ICTA's 1 project proposals in various fields have been approved by the European Commission. Furthermore ICTA contributed to the works of Euro-Mediterranean Regulators Group (EMERG) which was founded with a vision to establish a platform like IRG and provide a multi-lateral dialog and share experience between European Union and Mediterranean countries. 6.2 Relations with International Telecommunications Organizations Turkey as a member of ITU Council participated in the Council meeting held in Geneva between 12-22 May 2015. During the Council meeting, ITU's 150th anniversary has been celebrated on 17 May 2015. In the celebration which UN member states, the private sector, academic organizations, UN specialized agencies and international organizations participated, the 150. Year Certificate has been presented to 20 founding member countries including Turkey. 104 ICTA participated 10th Internet to Governance Forum (IGF-2015) which was held in Joao Pessoa, Brazil between November 10-13 2015. In the opening session of the IGF 2015, as previous host country, first speech was given by ICTA President Dr. Ömer Fatih SAYAN on behalf of Turkey. ICTA President Dr. SAYAN touched on ICT 2023 goals of Turkey, Turkey’s aim to be one of the first countries in 5G, efforts of Turkey enabling a safe online environment for kids and international cooperation for combat against terrorism in his speech to more than 2000 participants from 112 countries. Important activities towards the postal sector was carried out international area. In this context, ICTA participated to the meeting of Council of Administration and Postal Operations Council of Universal Postal Union which were held in Bern/Switzerland between 19 October13 November 2016. In the meetings, the UPU's biennial budget and accounts, human resource and policies proposals by the Postal Operations Council has been approved. Also, a signing arranged ceremony was during the Council of Administration and host country agreement concerning the realization of the UPU Congress in Istanbul from 105 19th September to 7th October 2016 was signed between Turkey and UPU. İstanbul Congress will determine the future of the UPU and postal sector objectives and strategies for the period of 2016-2020. United Nations General Assembly High Level Meeting on Review of WSIS +10 held in New York on 15-16 December 2015. In this significant UN meeting, ICTA President Dr. Ömer Fatih SAYAN addressed the high level representatives of the UN member states and civil society organizations' representatives. Dr. SAYAN gave detailed information about the point Turkey has come regarding information and communication technologies. 6.3 World Radiocommunication Conference (WRC – 15) World Radiocommunication Conference (WRC) was held between 02 November to 27 November 2015 in in Geneva/Switzerland. Some matters were discussed in scobe the scobe of The Conference’s Agenda Items, such as regional or general frequency planning of all telecommunication radiocommunication and services, determination of system technic criteria, using of radio spectrum shared by all 106 countries and determination of procedures how to use frequency spectrum when all telecommunication services develop and become widespread . It was attended WRC-15 by Turkish Delegation included ICTA, establishments and institutions related. WRC-15 was followed and its results were evaluated within the scope of national interests by Turkish Delegation. 6.4 Bilateral Cooperation Through bilateral cooperation with the various countries, the ICTA aims to develop its regulatory capacity, to develop mechanisms for sharing experiences and information with countries that are developed in terms of telecommunications regulations, to support and guide the neighbouring countries that have similar historical and cultural values, to strengthen current relations by creating common starting points, to increase recognition of the ICTA and to benefit from international platforms by establishing good relations. The activities of bilateral cooperation continued during the year 2015 and in this context, the following developments were made: A delegation from Tanzania Communications Regulatory Authority (TCRA) paid a visit to ICTA on 10-11 March 2015. During the visit, the delegation was briefed about Mobile Equipment Identity Register System in Turkey. Within the scope of bilateral cooperation activities between ICTA and the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), a Memorandum of Understanding (MoU) was signed on 7 May of 2015 in Istanbul. The signed MoU aims at development of cooperation through exchanging information, experience and experts in the field of electronic communications. In order to carry the cooperation between ICTA and Cameroon Telecommunications Regulatory Board (TRB) into effect, a Memorandum of Understanding (MoU) was signed on 8 May of 2015 in Istanbul. The signed MoU aims at development of cooperation through exchanging information, experience and experts in the field of electronic communications. 107 A delegation from Central Communications Office of the Republic of Kazakhstan, led by Director Mr. Erzhan BABAKUMAROV paid a visit to the ICTA on 15 July of 2015. The delegation was accompanied by the representatives of Embassy of Kazakhstan in Ankara and Directorate General of Press and Information of the Republic of Turkey. A briefing about the organization of the ICTA, its activities, internet governance and combat against illegal content on internet was given to the delegation. In order to establish cooperation in the field of ICT, particularly 5G, between Turkey and Japan, a Joint Statement was signed by Dr. Ömer Fatih SAYAN, President of ICTA for Turkey and by Mr. Yasou SAKAMOTO, Vice- Minister for the Internal Affairs and Communications for Japan on 7 October of 2015 in Tokyo. Joint Statement foresees exchanging information and experiences on policy and regulation in the field of 5G between the two sides and enhancing relationship in private sector between the two countries. 108 6.5 10th International Conference Electronic Communications Regulators The 10th International Electronic Communications Regulators Conference was organized in Istanbul on 7-8 May of 2015 by the ICTA. The main theme of the conference was “Trends in the Mobile Future”. The conference to which more than 200 participants attended including representatives of the ministries and national regulatory authorities from various countries as well as academics and operators served as a platform to discuss and exchange views on current issues. 17 countries were represented at the conference. 6.6 International Seminar on Spectrum Regulations ICTA launched training seminars in 2011 to support the countries that Turkey shares common historical and cultural values and that Turkey have and will have mutual relations currently and in the future in overseas geographies as well as to exchange information and views between ICTA experts and experts who work in regulatory authorities responsible for electronic Communication telecommunication sector regulations, in various spectrum countries. regulations and These seminars information include technologies regulations. In this context, A seminar was organized in İstanbul on 14-18 September 2015. The seminar was on Spectrum Regulations. 52 participants from 30 different countries have discussed 109 issues such as spectrum management, national frequency plans, spectrum monitoring and market surveillance. 6.7 World Trade Organization and Free Trade Agreements Studies After Doha round of World Trade Organization (WTO) negotiations have stalled, to spur service trade, a new service trade agreement studies has been started. The Trade in Services Agreement (TiSA) is a trade agreement currently being negotiated by 23 members of the WTO, including the EU and Turkey. TiSA aims at opening up markets and improving rules in areas such as licensing, financial services, telecoms, e-commerce, maritime transport, and professionals moving abroad temporarily to provide services. Similarly free trade agreements studies have accelerated recently. All studies about TISA and Free Trade Agreements (FTA) Studies are being coordinated by Ministry of Economy and ICTA contributed to the agreement studies actively in 2015 in scope of ICTA’s duties and responsibilities. 110 7. PROJECTS AND OTHER ACTIVITIES 7.1 EU Supported Technical Assistance Project The tender and agreement processes of “Technical assistance for achieving the information society and stimulating high-speed broadband services to the benefit of consumers” which is within the scope of 2011-2013 program of Pre-accession Financial Assistance Part 1 (IPA-1) were completed on 28.01.2015 and execution of the project started on 28.04.2015. The basic activities within the project which are to be finalized in 18 months are as follows: i. Development of cost models, pricing methodologies and charging mechanisms for current and next generation fixed and mobile network operators (NGN, FTTX, 3G, LTE etc.), ii. Relevant market analyses, determination of specific remedies to be imposed on the operators having SMP, iii. Review of current access/interconnection services and reference access/interconnection offers, iv. Preparation of concise National Broadband Plan. It is evaluated that the project in which relevant instruments will be developed for Turkey to reach the information society and promote high speed broadband services will contribute to the further achievement of sustainable competition and to maximization of consumer welfare. 7.2 Views Given to the Competition Authority The Article 7 of the Electronic Communication Law numbered 5809 and dated 05.11.2008 states that “The Competition Board while performing examinations and supervisions and while making any decisions on electronic communications sector, including decisions about merger and takeovers, takes into consideration primarily the Authority’s view and the regulatory procedures of the Authority.” By taking into account of this provision, it has been ensured that mutual cooperation and continuous coordination became more efficient within the context of “the Coorperation Protocol Between Competition Authority (CA) and ICTA” entered into force on November 2nd, 2011, and the required studies have been realized in 2014 accordingly. In this context, with the entry of Postal Services Law numbered 6475 into force, regarding the new tasks assigned for the regulation of postal services to ICTA, the Cooperation Protocol 111 was revised on January 22, 2015. In addition to this, in accordance with that provision and protocol, Competition Authority (CA) requests view and information from ICTA whilst investigating and making decisions about electronic communications sector. In this context, in 2015, a total of 8 Authority (ICTA) view and information in response to the applications made before CA about merger/takeovers and breaches of competition were sent to CA by ICTA. 7.3 Legal (Consultancy) Activities In 2015, it has been proceeded to provide litigation and resolution of the case and execution proceeding. Also, warrants has been replied that coming from variety of court and Prosecution Offices. There are 1485 pending case of which ICTA adhered by 2015. The table of cases that has been proceeded in 2015 as follow; Table 13: The range of cases that the ICTA has adhered as respondent in the year of 2015 Type of Case Amount of Case Criminal Cases 99 Administrative Cases 312 Civil Cases 330 TOTAL 741 Table 14: The range of cases that the ICTA has adhered as Claimant in the year of 2015 Type of Case Amount of Case Criminal Cases 8 Administrative Cases - Civil Cases 5 TOTAL 13 112 In 2015, the amount of 84 warrants has been replied that coming from a variety of court and Prosecution Offices. 7.4 Updating the Official Websites of ICTA The official main websites and official consumer website of ICTA (www.btk.gov.tr, eng.btk.gov.tr and tuketici.btk.gov.tr) and their Content Management System (CMS) have been renewed and modified in order to provide modern, dynamic and ergonomic appearance. Furthermore, content management activities whose some deficiencies have support of English can be managed more reliable and effectively. 7.5 Consultancy Service for ICTA Information Management System Consultancy service which is provided by TÜBİTAK BİLGEM Software Technologies Research Institute since 5 January of 2015 for ICTA continued for five months. Within the scope of the service, current situation analysis was performed with the following purposes: to conduct organizing and auditing processes of electronic communications sector in congruence with information management system which is compatible with the international standards, to improve the infrastructure of sectoral data analysis and reporting 113 thereby strengthening the decision support processes. Additionally, ICTA Information Management System’s current situation analysis was carried out concerning ten different dimensions including; -regulations, -strategic plan, -service inventory, -business processes, - current data, -current software, - examples from both domestic and abroad, - internal and external stakeholders, -information technologies infrastructure. Technical solution proposal was prepared by the some analysis results of the software. And the technical requirements drafts documents to be used during procurement process were prepared too. And also analysis results assessment continues in ICTA. 7.6 Data Center Studies The process of changing the service building of ICTA is continuing, At the same time, existing systems should be moved to this newly constructed building. Moreover, projects which are not in use yet, will be included to the newly developed system for the so-called building. Thus, it is planned to form a data center. In this context, for the purpose of describing national and international quality standards, identifying the areas to be included in the data center, making a plan according to the business continuity principles, ensuring organization's system security and reliability, it has been analyzed what kind of system room we need, then Data Center Specification has been prepared according to these analyses. 114 Figure 57: Data Center Plan New technologies in the data center need to take into account affordability, information security, stability and sustainability. It is also considered while working on the data center project that our institution should have an example data center as regulation studies about data centers has been performing by ICTA. Therefore, the international principles are accepted as our base. It is planned with a supplementary design to ensure the sustainability of the system against 72-hour outage. 7.7 Preparation of Mobile Spectrum Strategy Considering the usage of mobile spectrum and mobile broadband, the studies regarding preparing a report on the time of IMT spectrum assignment and amount of spectrum needed in the future, began. 7.8 Satisfaction of External Customer Survey It was aimed to measure external customer satisfaction in order to determine the needs of the sector served by ICTA and to learn ICTA’s success in meeting the expectations of sector and to determine areas that are open to improvement and need to making regulations. Evaluating the result of this survey, Satisfaction of External Customer Report will be prepared and presented to Senior Management. 115 7.9 Application of OHSAS 18001 Occupational Health and Safety Management Standards for ICTA Specifying factors and conditions that promotes a safe and healthy working environment for all people’s (personnel, subcontactor staff, visitors and any other person at the buildings) affected by activities of ICTA and taking necessary cautions are also specified by regulations. And OHSAS 18001 management system began to be implemented in ICTA and studies of process documentation have been conducted regarding to this standard. 116 8. PUBLICATIONS 8.1 Quarterly Electronic Communications Market Data Reports Electronic Communications Market Data Report has been prepared based on the data obtained from the authorized operators, operating in the Turkish electronic communications market. The purpose of the report is to observe and analyze the development of the industry, and to inform operators, public and stakeholders of the performance of the sector. In quarterly reports; graphics, tables, and figures are used to release detailed information such as number of subscribers, penetration rates, revenues, investments, market shares of operators and information about consumer complaints etc. Quarterly Electronic Communications Market Data Reports have been published regularly since 2009. In this context, the 4 report was published in 2015. More information of reports can be accessed from: http://www.btk.gov.tr/en-US/Pages/Market-Data 8.2 The Bulletin of Developments Communications Sector in International Electronic The Bulletin of Developments in International Electronic Communications Sector is prepared and published every month via the web site of ICTA to benefit from the experiences and follow the agenda of countries like Germany, France, Italy, Sweden, United Kingdom, The Netherlands, South Korea, China, Ireland, USA and international organizations like BEREC, OECD, ITU, ICANN, European Union Agency for Network and Information Security (ENISA), CEPT, ETSI, GSM Association (GSMA). Within the scope of the bulletin not only the information about the regulations in European countries but also the developments in electronic communications markets, broadband, cloud computing, software services, open internet, security, developing technologies and the future of internet are also examined. In addition to these, the regulations in countries like USA, South Korea and China which have well developed broadband infrastructure are presented. In this context, the 12 bulletins were published in 2015. 117 A full copy of the Bulletin can be accessed from: http://www.btk.gov.tr/tr-TR/Sayfalar/Elektronik-Haberlesme-Sektorunde-Gelismeler-Bulteni 8.3 Electronic Communications Statistics at Provincial Level Electronic Communications Statistics at provincial level covers indicators about fixed and mobile telephony as well as broadband internet at provincial level for last 6 years. It is hoped that this work will be useful for individual researchers, actors from sector and public policy makers who deal with electronic communications sector. The annual statistical bulletin at provincial level has been published for the 2009-2014 period in 2015. The Bulletin can be accessible from: http://www.btk.gov.tr/kutuphane_ve_veribankasi/yil_istatistikleri/ehsyib.pdf. 8.4 The Statistics of the Equipments Having Electronic Identity Information Within the scope of the statistics regarding electronic devices that having identity information, equipments; imported, manufactured or brought by individuals while returning from abroad and devices belonging IMEIs are registered to Mobile Equipment Registration System. Moreover with the prescription of Court/ Prosecutor and in consequence of notifications to ICTA Notification Center, mobile devices can be closed or opened to the communication. In this context, the statistical data about the operations done by ICTA in 2015 can be accessible from: http://btk.gov.tr/tr-TR/Sayfalar/Istatistikler- . 8.5 The Research Report about Mobile Payment Services With the rapid development of mobile electronic communication technology consumers began to use mobile technology as means of payment as well as the communication technology. In this context a research report has been prepared regarding the usage and development of mobile payment services in our country and in the world. “Mobile Payment Services” report can be accessible from: 118 http://btk.gov.tr/tr-TR/Sayfalar/Arastirma-Raporlari. 8.6 The Report of the Importance of Expanding Green IT and Recommendations for Turkey A report has been prepared about Green IT, including an analysis of current developments and recommendations for Turkey in order to recycle of waste matters in the electronic communications sector and increase the awareness of industry stakeholders. The report can be accessible from: http://btk.gov.tr/tr-TR/Sayfalar/Arastirma-Raporlari 119 9. ICTA ON PRESS As seen on Table 15 below, 365 daily press files were prepared including weekends in 2015, 136 media releases were submitted and Chairman of the Board Ömer Fatih Sayan PhD. performed 2 press conference. ICTA attended 90 meetings and activities and 3 corrections have been sent to media institutions regarding the news on ICTA. Furthermore, 44 press informative notes were sent to media institutions. In addition that electronic brochure of 4.5 G is published in 2015. Table 15: Media Relations 2015 Daily Press Files 365 Number of News on Press Regarding ICTA 1540 Number of Press Releases 136 Number of Press Conferences 2 Number of Meeting and Activities Attended 90 Corrections Sent to Media Institutions 3 Press Informative Notes 44 Electronic brochure of 4.5 G 1 120