2011 Annual Report - Bilgi Teknolojileri ve İletişim Kurumu
Transcription
2011 Annual Report - Bilgi Teknolojileri ve İletişim Kurumu
1 2 TABLE OF CONTENTS TABLES................................................................................................................. 9 FIGURES ............................................................................................................. 10 Foreword............................................................................................................ 12 Quality Management System................................................................................. 14 Quality Policy ...................................................................................................... 14 Mission, Vision and Values .................................................................................... 15 ICTA Chairman and Board Members ....................................................................... 15 Information and Communication Technologies Authority ........................................... 18 1. Electronic Communications Market ................................................................ 21 1.1. Fixed Market .............................................................................................................24 1.2. Internet and Broadband Data...................................................................................28 1.3. Mobile Market...........................................................................................................32 2. Regulations and Activities related to Competition........................................... 37 2.1 The Cooperation Protocol Between Competition Authority and the of Information and Communication Technologies Authority ..........................................37 2.2 Views given to Competition Authority .......................................................................38 2.3. Fibre Access Decision ................................................................................................38 2.4. Retail Internet Service Providing by Türk Telekom......................................................39 2.5.ISP Modem Devices Locking Applications ..................................................................39 2.6. Regulations and Activities Related to Competition....................................................40 2.6.1.Reference Access Offers ......................................................................................40 2.6.1.1 Reference Interconnection Offers.................................................................40 2.6.1.2 Turk Telekom Reference ATM/FR/ME Wholesale Internet Resale Offer.........41 2.6.1.3. Turk Telekom Reference Leased Line Offer..................................................41 2.6.1.4 Turk Telekom Reference Offer for IP Level Bit Stream Access........................41 2.6.1.5. Turk Telekom Reference Unbundling Offer .................................................42 2.6.1.6 Turk Telekom Reference xDSL Wholesale Internet Resale Offer....................42 2.6.1.7. Turk Telekom Reference Co-location and Facility Sharing Offer...................42 2.6.2 Other Access and Interconnection Regulations ..................................................43 2.6.2.1 Switching of ISPs and Cancellation of DSL Subscription Contracts ...............43 2.6.2.2. Naked DSL Service .......................................................................................43 ICTA 2011 Annual Report 2 PDF created with pdfFactory Pro trial version www.pdffactory.com 3 2.6.2.3 Co-location and Facility Sharing Requests rejected by the Turk Telekom .....44 2.6.2.4 Several Broadband Promotions.....................................................................44 2.6.2.5 Discounted DSL Internet Tariffs for Disabled Citizens...................................44 2.6.2.6 Turk Telekom Wholesale/Retail Daily and Hourly Internet Service Tariffs and Promotion.................................................................................................................45 2.6.2.7 Leased Line Regulations ...............................................................................45 2.6.2.8 Wholesale Line Rental...................................................................................46 2.6.2.9 Promotional Discounts on Fixed Interconnection Rates ...............................46 2.6.2.10 Investigation on “Interconnection cut-off” between Türk Telekom and BN Telekom....................................................................................................................46 2.6.3 Dispute Resolutions.............................................................................................47 2.6.4 Access Agreements .............................................................................................47 2.6.5 Accounting Separation and Cost Accounting .....................................................48 2.7. Design, Installation and Sharing of the Cellular System Antenna Facilities...............49 3. End User Regulations and Activities ............................................................... 50 3.1. Activities and Developments for the End-User Tariffs ...............................................50 3.2. Principles and Procedures concernig to Safe Internet Service ....................................51 3.3 Electronic Communications Services Availability for Disabled Users ...........................51 3.4 Ordinance on Consumer Rights in Electronic Communications Sector......................51 3.5. Ordinance on Quality of Service in Electronic Communications Sector.....................51 3.6. Draft Regulation on Processing of Personal Data and the Protection of Privacy in Electronic Communications Sector...................................................................................52 3.7. Prepaid Credit Fraud..................................................................................................52 3.8. Regulation on Penalty Clause....................................................................................52 3.9. Transfer of the Balance in Prepaid Systems ...............................................................52 3.10. Services on Ring Tones and Mobile Games.............................................................52 3.11. Periodical Services Renewed Automatically ...........................................................52 3.12 GSM Coverage Area Studies ....................................................................................53 3.13 Emergency Situations...............................................................................................53 3.14 Along the Ankara-Konya High Speed Train Line, Supply GSM/3G Coverege Project 53 3.15 Aplications in the Context of Right to Information Law ...........................................53 3.16. Evaluation of Consumer Complaints.......................................................................54 3.17. National Cyber Security Exercise .............................................................................55 ICTA 2011 Annual Report PDF created with pdfFactory Pro trial version www.pdffactory.com 4 3 3.18 Security of Electronic Communications ....................................................................56 4. Authorization ................................................................................................ 57 4.1. Authorization Regulations.........................................................................................57 4.1.1. Ordinance on Authorization for Electronic Communications Sector ..................57 4.1.2. Rights of Way .....................................................................................................57 4.1.3. The usage of GSM Frequency Bands for 3G Services .........................................58 4.1.4. The Holding Separate of the Accounting Record of 2G-3G ...............................58 4.2. Authorization Activities .............................................................................................58 4.2.1. Services...............................................................................................................58 4.2.1.1. Satellite Communication Service..................................................................58 4.2.1.2. Satellite Platform Service ..............................................................................58 4.2.1.3. Infrastructure Operating Service ..................................................................59 4.2.1.4. Internet Service Provision .............................................................................59 4.2.1.5. Fixed Telephony Service...............................................................................59 4.2.1.6. Wired Broadcasting Service..........................................................................59 4.2.1.7. GMPCS Mobile Phone Service......................................................................59 4.2.1.8. Mobile Virtual Network Service....................................................................59 4.2.1.9. Public Access Mobile Radio Service ..............................................................60 4.2.1.10. Directory Services.......................................................................................60 4.2.1.11 GSM 1800 Mobile Phone Services for HT-GSM 1800 MTH Air Vehicles......60 4.2.2. Amendment on the Authorization Agreement of Türksat A.Ş. ..........................60 4.2.3 R&D Inspections..................................................................................................60 4.2.4. All-Risk Insurance................................................................................................61 4.2.5. Treasury Share ....................................................................................................61 4.3. Trial Permissions ........................................................................................................61 5. Numbering.................................................................................................... 62 5.1. Regulation Activities .................................................................................................62 5.1.1. Regulation on Value Added Electronic Communication Services .......................62 5.1.2. Withdrawal of 522 Numbers ..............................................................................62 5.2. Number Assignments ...............................................................................................62 5.2.1. Geographical and Nomadic Number Assignments ............................................62 5.2.2. Short Numbers ...................................................................................................62 5.2.3. NSPC and ISPC Assignments ..............................................................................63 ICTA 2011 Annual Report 4 PDF created with pdfFactory Pro trial version www.pdffactory.com 5 5.2.4. Carrier Selection Code and Access Code Assignments.......................................63 5.3. Number Portability ...................................................................................................63 6. Spectrum Management and Applications ....................................................... 64 6.1. Work on New By-Laws..............................................................................................64 6.2.1. Allocations to Public Access Mobile Radio Services (PAMR).................................64 6.2.2. Emptying the 450–470 MHz Frequecy Band .....................................................64 6.2.3. Other Allocation and Coordination Activities .....................................................65 6.2.3.1. Activities Related to Satellite Services ...........................................................65 6.2.3.2. Activities on Aeronautical Communication Systems ....................................65 6.2.3.3. Activities on Maritime Communication Systems..........................................65 6.2.3.4. Activities on GSM/UMTS Bands ...................................................................66 6.3. Devices which are approved for Importation in the Context of Frequency Planning 66 7. Information Technology Projects ................................................................... 67 7.1. Central Equipment Identity Register (CEIR) ...............................................................67 7.2. Number Portability System .......................................................................................67 7.3. Disaster Recovery Center...........................................................................................68 7.4. National Monitoring System Software ......................................................................68 7.4. Electronic Signature..................................................................................................68 7.5. Registered E-Mail ......................................................................................................69 7.6. Internet Domain Names ...........................................................................................69 7.6.1. Dispute Resolution Mechanism (DRM)...............................................................70 7.6.2. DN Life Cycle Communiqué ...............................................................................70 7.6.3. TRABİS Consultancy Service ................................................................................70 8.Activities Related to Internet Security and Internet Regulations ........................ 72 8.1.Legal Basis..................................................................................................................72 8.2. Activities concerning the Conscious Use of Internet .................................................72 8.2.1 Web Portals .........................................................................................................73 8.2.1.1. Safe Web Portal (www.guvenliweb.org.tr) ...............................................73 8.2.1.2. Safe Child Portal (www.guvenlicocuk.org.tr) ............................................73 8.2.2. Activities aimed at conscious use of Internet......................................................74 8.2.2.1 Advice manual for safe use of Internet........................................................74 8.2.2.2 Manuals .......................................................................................................75 8.2.3 Safer Internet Day .........................................................................................75 ICTA 2011 Annual Report PDF created with pdfFactory Pro trial version www.pdffactory.com 6 5 8.2.4 Other Events.................................................................................................76 8.2.5.Researches ..........................................................................................................77 8.3. Activities Within Authorizatıon & Certıfıcatıon ......................................................78 8.3.1. The Protocol Done With Ministry of Internal Affairs ......................................78 8.3.2. Symposium of Managers of Editorial Office ..................................................79 8.4. Statistical Data......................................................................................................80 8.4.1. Statistics of Hosting Certificates .........................................................................80 8.4.2. Collected Usage Internet Providers for Commercial Purpose ..............................80 8.5. Safer Internet Service ............................................................................................83 8.5.1. Safer Internet Booklet.........................................................................................83 8.5.2. Commercial Movies ............................................................................................83 8.5.3. Safer Internet Web Portal....................................................................................84 8.5.3.1. Safer Internet Service ...................................................................................85 8.5.3.2. Advices for Users .........................................................................................85 8.5.3.3. Query Interfaces..........................................................................................85 8.5.4 Posters and Flyers................................................................................................85 8.5.5. Appeals and Objections .....................................................................................85 8.6 Internet Hotline Service ..............................................................................................85 8.6.1 Projects and Activities ..........................................................................................85 8.6.2. Report Statistics ..................................................................................................86 8.7. International and Institutional Activities ....................................................................88 9.Technical Regulation and Standardization Activities......................................... 91 9.1.Constructing E-Market Surveillance and Inspection Infrastracture .............................91 9.2.Market Surveillence Laboratory ..................................................................................91 10. Inspection Activities ..................................................................................... 94 10.1.By-Law on the Supervision Activities of the Information and Communication Technologies Authority ....................................................................................................94 10.2.Internal Directive on the Supervision Activities of the Information and Communication Technologies Authority..........................................................................94 10.3.Inspection of Electronic Service Providers .................................................................94 10.4.Inspection of GSM QoS............................................................................................95 10.5.National Monitoring Activities ..................................................................................95 10.6.Electromagnetic Radiation Measurements...............................................................95 ICTA 2011 Annual Report 6 PDF created with pdfFactory Pro trial version www.pdffactory.com 7 10.7.Safety Cerfificate and the Implementations for the Certificate of Measurement Authorization ...................................................................................................................96 10.8. Market Surveillance and Inspections Activities ......................................................96 11.IPv6 Transition Works ................................................................................... 98 11.1.National IPv6 Infrastructure Design and Transition Project.......................................98 11.2.Prime Ministry Circular..............................................................................................98 11.3.Awareness Raising Works.........................................................................................99 12.International Relations................................................................................ 100 12.1 The Relations with the European Union ................................................................100 12.2 Relations with International Telecommunications Organizations ..........................101 12.2.1. World Telecommunication and Information Society Day................................102 12.2.2. Seminars on International Electronic Communications Regulations...............102 12.3 Bilateral Cooperation..............................................................................................103 12.4 Black Sea and Caspian Regulatory Conference ......................................................104 13.Technologic, Economic, Regulatory and Market Reports .............................. 105 13.1. Usage of 800 MHz Band in Mobile Communication Services ...............................105 13.2. The Role of Regulatory Authorities on Digital Broadcasting ..................................106 13.3. Technological Regulations Dedicated to Disabled Users.......................................108 13.4. Net Neutrality........................................................................................................111 13.5. Regulation of Postal Sector....................................................................................113 13.6. Trends in Electronic Communications Sector in terms of Regulation and Technology and Suggestions for Turkey............................................................................................115 13.7. Turkish Electronic Communications Market Quarterly Market Data Report.........119 13.8. Bulletin Related with Regulatory Developments in EU Member States .................119 14.Financial and Institutional Information........................................................ 120 14.1. Financial Information.............................................................................................120 14.2. New Building Construction ...................................................................................121 14.3. Education Activities ...............................................................................................121 14.4. Relations with Media.............................................................................................121 ICTA 2011 Annual Report PDF created with pdfFactory Pro trial version www.pdffactory.com 8 7 TABLES TABLES Page Table 1: Number of Authorization ......................................................................................21 Table 2: Number of Internet Subscribers.............................................................................28 Table 3: EU MoU comparison...........................................................................................376 Table 4: Views given to the Competition Authority ..........................................................408 Table 5: Dispute Resolution Procedures Concluded and Carried by the Authority in 2011.47 Table 6: Access and Interconnection Agreements Submitted to the Authority ..................48 Table 7: Applications in the context of Right to Information Law .......................................54 Table 8: Ranking of Consumer Complaints by Subject........................................................55 Table 9: Statistical information for Notification Form ..........................................................66 Table 10:Statistics on Certification of Hosting Providers, 2011............................................80 Table 11: Number of Devices Tested In Each Laboratory Unit, 2011 ..............................9110 Table 12: Distribution of Inspections made in 2011 by Type of Inspection.........................97 Table 13: Market Surveillance and Equipments According to Product Grouping, 2011 ......97 ICTA 2011 Annual Report 8 PDF created with pdfFactory Pro trial version www.pdffactory.com 9 FIGURES FIGURES Figure 1: ICTA Organization Chart......................................................................................19 Figure 2: Breakdown of Employees - Education .................................................................20 Figure 3: Breakdown of Employees - Gender .....................................................................20 Figure 4: Net Sales ..............................................................................................................22 Figure 5: The Share of Operators in Net Sales.....................................................................22 Figure 6: Total Investments in Electronic Communications Market ....................................23 Figure 7: Total Call Volume .................................................................................................23 Figure 8: Traffic Distribution (%)..........................................................................................24 Figure 9: Fixed-line Subscribers and Penetration .................................................................24 Figure 10: Breakdown of TT’s Traffic (%)............................................................................25 Figure 11: Shares of FTS – TT in Call Origination (local) Traffic............................................25 Figure 12: Shares of FTS – TT in Call Origination (intercity) Traffic ......................................26 Figure 13: Shares of FTS – TT in Call Origination (to mobile) Traffic.....................................26 Figure 14: Shares of FTS – TT in Call Origination (to abroad) Traffic ....................................27 Figure 15: FTS-TT Shares’ in Total Fixed Traffic....................................................................27 Figure 16: FTS Revenues – TT Voice Services Revenues Comparison (%)...........................28 Figure 17: Number of ADSL Subscribers..............................................................................29 Figure 18: Shares of Broadband Technologies in Turkey and EU........................................29 Figure 19: Breakdown of ADSL Subscribers by Access Speeds ............................................30 Figure 20: Market Shares of Broadband Operators, (%) .....................................................30 Figure 21: Shares of Incumbents and Alternative Operators in Retail Broadband Services in Turkey and Some EU Countries, (%) .................................................................................321 Figure 22: Broadband Penetration Rates in Turkey and Some EU Countries ....................332 Figure 23: Average ARPU Values for Incumbent Operator and GSM Operators...............363 Figure 24: Cumulative Number of Subscribers Switched Their ISPs ...................................473 Figure 25: Sectoral Profile of the Participatory Organizations............................................634 Figure 26: Central Equipment Identity Registry Structure..................................................784 Figure 27: 10 Cities having the Biggest Number of Internet Cafes ...................................965 Figure 28: Violation of Obligation to Inform, 2011 ...........................................................985 Figure 29: Safer Internet Films.........................................................................................4100 Figure 30: Number of Reports by Year ................................................................................56 ICTA 2011 Annual Report PDF created with pdfFactory Pro trial version www.pdffactory.com 10 9 Figure 31: Categorical Breakdown of Catelogue Complaints .............................................67 Figure 32: Categories of Blocked Web Sites ........................................................................81 Figure 33: Estimated and Realized Budget .........................................................................82 Figure 34: Budget Revenues ...............................................................................................84 Figure 35: Budget Expenditures..........................................................................................86 Figure 36: Transfers from Budget........................................................................................87 ICTA 2011 Annual Report PDF created with pdfFactory Pro trial version www.pdffactory.com 10 11 FOREWORD The significance of electronic communications sector in both developed and developing countries’ economies is continuously increasing. Since growth of it does not come to a standstill even in crisis environment, this sector has become an important tool in order to enhance the development level of countries. Every day emerges a new service in this sector and a permanent competition exists among both operators and technologies and this competition in turn brings about cheaper and more innovative services of higher quality. Determination of pertinent strategies and making appropriate regulations are of great importance for the future of this sector where consumer welfare is consistently increasing. Information and Communication Technologies Authority (ICTA), being aware of this sector’s contribution to Turkey’s economy, carries on its operations aimed at forming a more advanced and more competitive electronic communications sector in national and international level. In 2009, Strategic Plan, which sets out strategies of the sector for the next 3 years, was published. 2010-2012 Strategic Plan of ICTA deliberates five main objectives. These five main objectives consist of “Supervision of Consumer Rights and Interests”, “Ensuring and Improving Efficient Competition Environment”, “Supporting Innovation Policies and Research and Development Activities”, “Supporting Constitution of Information Society” and “Improving Institutional Capacity”. Under these five main objectives, sub- objectives were given place. Actions to be taken in order that these objectives are attained will take place in Work Plans of ICTA. In this regard, 42 actions were designated in 2010 Work Plan and 36 actions in 2011 Work Plan so as to attain these objectives. 12 Turkish electronic communications sector which has been developing since the liberalization of the sector in 2004 has continued to develop in 2011. As of the end of 2011, 333 operators with 538 authorization operate in Turkey. Consumers have shown huge interest to mobile number portability that came into force in 2008 and the ported numbers exceeded 37.5 million in 2011. 3G mobile services which came into implementation in 2009 has attracted huge interest of consumers and 3G subscriber number has exceeded 31,4 million in 2011. In parallel to 3G services, number of mobile internet users also went up substantially and above 6.45 million subscribers has begun to use mobile internet services. Beside the developments in mobile sector, broadband sector made important progress as well. Although there is no important change in ADSL subscription, cable internet and fiber subscriptions have increased a lot. As of 2011, the number of broadband subscribers has reached to 14.1 million. ICTA, in accordance with 2010-2012 Strategic Plan and taking developments in other countries into consideration, will carry on working so that electronic communications sector become more competitive and more innovatory. In this process ICTA will exert utmost effort to improve the research and development potential and to support domestic production in the sector. Fast, inexpensive and high quality service provision to all citizens, a liberalised electronic communications sector, a strong telecommunications market and fair competition will continue to be main principles of our electronic communications sector. In addition to its contribution to development of our country, to bring our electronic communications sector to a level that it can compete in international field, to ensure that our consumers get maximum benefit from this sector, to bring our operators and producers to global company status are some of our foremost objectives. In the path towards realisation of these objectives, precious contributions of our sharers will also be taken into account whilst making regulations. I kindly present Annual Report that contains activities performed and significant changes and developments observed in 2011 and I wish forthcoming years to be more productive for both our sector and our country. Yours respectfully, Tayfun ACARER, PhD Chairman of the Board 13 Quality Management System ICTA was predicated on the Total Quality Management concept, which has proved its success at an international level, in order to provide services with a contemporary understanding of management system in the regulation, authorization and supervision activities as a Regulatory Authority. ICTA has established the “Quality Management System” and has it approved by the Turkish Standards Institute (TSE), as an independent licensing institution, in 11.12.2002. Then ICTA has become the first autonomous authority with the TSE-ISO-EN-9001:2000 QMS license; and it established its quality management system in 4 main processes which are: Regulation, Supervision, Permission, Management and Support. Quality Policy Our Quality Policy is to provide services with the personnel that are happy to be the members of ICTA and that are experts in their fields; to perform the regulatory procedures, including the whole communication sector, which is a driving force of the globalizing world, as per the international norms and standards; to increase the satisfaction of those providing and receiving services; to ensure equality and fairness for all benefiting from our services being aware of our mission and vision and our responsibilities; to ensure continuous improvement of our service quality as per the innovations in science and technology; to improve the system efficiency considering the conditions of the management system and to be the best. 14 Mission, Vision and Value ICTA Chairman and Board Members Board of Information and Communication Technologies Authority (Board), the decision-making 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. 15 Mr. Acarer was born in İstanbul on September 28th, 1956. He has a BS degree from Istanbul Technical University, Electronic and Communications Department and holds MS and PhD degrees from İstanbul University Maritime Transportation Administration Engineering. Previously he worked as Deputy General Manager and Board Member in Coastal Safety and Salvage Administration. He was appointed as the President of ICTA on May 9th, 2005. Acarer was re-appointed on May 2010. 16 Mr. Beydoğan was born in Isparta on October 22nd, 1962. He graduated from Ankara University, Faculty of Law and has master degrees both from Gazi University, Public Law Department and Leicester University, Faculty of Law. He holds a PhD degree from Selçuk University, Public Law Department. Previously, he worked as the Head of Sectoral Competition and Consumer Rights Department in ICTA. He was appointed as a Board Member, representing radiocommunication services, on April 9th, 2004. Mr. Beydoğan was re-appointed on April 24th, 2009 as a Board Member, representing telecommunications services. Mr. Zerey was born in İstanbul on December 22nd, 1955. He holds BS and MS degrees from İstanbul University, Electronic and Communications Department. Previously, he worked as Customer Services Manager in Bull Computer Technology Inc. He was appointed as a Board Member, representing telecommunication sector, on October 26th, 2004. Mr. Zerey was re-appointed on January 29th, 2009. Mr. Kulalı was born in Çorum 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. He was appointed as a Board Member, representing consumer rights, on September 19th, 2007. Mr. Nursoy was born in Elazığ on September 21st, 1959. He has a BS degree from İstanbul University, Electronic and Communications Department. Previously, he worked as a consultant to Türk Telekomünikasyon Inc. He was appointed as a Board Member, representing telecommunication services, on September 19th, 2007. Mr. Gök was born in Çorum on October 20th, 1964. He graduated from Istanbul University, Faculty of Political Sciences. He worked as an auditor, senior auditor and expert auditor in Turkish Court of Accounts, and as the Head of Department and Board Member in Public Procurement Authority. He was appointed as a Board Member in ICTA on December 3rd, 2008. Mr. ŞAHİN, was born in Ankara in 1969. He has a BS degree from Gazi University, Electric-Electonic Engineering Department. He holds MS degree from Hacettepe University, Electric-Electronic Engineering Department. Previously, he worked as general manager of Pozitek Inc. He was appointed as a Board Member, repesenting telecommunication services, on 29th January, 2009. 17 Information and Communication 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 sector. While policy making is the responsibility of Ministry of Transportation, 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, lessen the uncertainties for operators and allocate resources to R&D, Electronic Communications Law has come into force on 10 November 2008 and the name of the Authority has changed to Information and Communication Technologies Authority (ICTA). The duties of the Authority described in Electronic Communications Law No 5809 can be summarized as given below: n Creation and maintaining the competition in the sector, n Protecting the rights of subscribers, users, consumers and end users, n Carrying out dispute resolution procedures between operators, Tracking the developments and stimulating the development of the electronic communications sector, n n Planning and allocation of the frequencies, satellite position and numbering, By taking into consideration the strategies and the policies of the Ministry of Transportation, Maritime Affairs and Communications, performing necessary regulations and supervisions, including: n n Authorization n Tariffs n Access n Numbering n Spectrum management n Licensing for the installation and use of radio equipments and systems n Monitoring and supervision of the spectrum n Market observance and supervision n Detection and elimination of electromagnetic interference. Transferring a specific financial resource to the Ministry of Transportation, Maritime Affairs and Communications for research, development and training activities pertaining to electronic communications sector. n 18 n Approval and supervision of the tariffs. n 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. n Conducting frequency planning, allocation and registration procedures pertaining to radio and television broadcasting. n n 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 in relevant markets. n n 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. n 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. n Based on the Law No: 5809 dated 10.11.2008, 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. There exist 7 regional directorates which locate in Ankara, İstanbul, İzmir, Diyarbakır, Mersin, Samsun and Erzurum. The organizational structure of Authority is given below. Figure 1: ICTA Organization Chart 19 By the end of 2011, ICTA has totally 718 employees and while 562 of them work in central units, 156 work in regional directorates. 68 of the employees in central units and regional directorates of ICTA are manager and advisor, 324 of them are career personel (ICT senior expert, ICT, communication, technical and administrative experts and expert assistants) and 326 of them are in other titles. In 2011, the examination has been done for 12 administrative assistant expert, 23 ICT assistant expert and 16 technical assistant expert. 15 employees have PhD degree, 81 have master’s degree, 505 have bachelor’s degree and 31 employees have two-year degree. Figure 2: Breakdown of Employees - Education Currently there are 513 male employees and 205 female employees in the Authority. Figure 3: Breakdown of Employees - Gender 20 1. Electronic Communications Market 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 2011, there exist 333 operators with 538 aıthorization in the electronic communications market. Table 1: Number of Authorization The trend in total sales revenues in electronic communications sector and the share of the operators in these revenues are shown in the Figure 4 and Figure 5. As of the end of 2011, total sales revenues of fixed and mobile operators have reached to approximately 27.62 billion TL. The share of mobile operators in total revenues became %56 and Türk Telekom’s share decreased to %27. 21 Figure 4: Net Sales Note: 2011 revenue values are not definite Figure 5: The 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 in terms of fixed and mobile since 2004 are shown in Figure 6 comparatively. Following an increasing trend in the recent years, total investments in electronic communications market in 2009 witnessed a considerable growth with the effects of authorization of 3G services. In 2009 investment amount increased by %68 and reached to just over 7 billion TL. In 2011, total investments reached to 3.9 billion TL with an increase rate of 3%. Türk Telekom has made 1.4 billion TL investment and mobile operators have made 2.5 billion investments in 2011. 22 Figure 6: Total Investments in Electronic Communications Market Total annual traffic volumes and their distributions in terms of fixed and mobile operators in Turkish electronic communications market are given in Figure 7. As shown in the figure, mobile traffic volumes increased significiantly since 2009. In 2011, total mobile call volume reached to 147.1 billion minutes in 2011 with an increase rate of 17% since last year that was 125.8 billion minutes in 2010. On the other hand, representing 13% of total call volumes fixed call volume decreased by 8% since 2010 to 21.8 billion minutes. Figure 7: Total Call Volume 23 Distribution of fixed and mobile total call volumes in Turkey is given in Figure 8. The figure indicates that mobile to mobile calls have the biggest share (approximately 82%) in total telephone traffic. Mobile to mobile traffic consists of mobile on-net calls and mobile off-net calls destinating to other mobile networks On the other hand the figure shows that fixed to fixed call volume follows a decreasing trend since 2006. While representing 46% of total call volume in 2006, fixed to fixed call volume now accounts only 11% of total call volume. Figure 8: Traffic Distribution (%) 1.1. Fixed Market The number of subscribers and penetration rates for fixed telephony since 2003 is given in Figure 8. The number of fixed subscribers decreased to 15.2 million with a penetration rate of 20.6%. Considering the fact that average household rate in Turkey is around 3.97 in Turkey, it can be concluded that fixed line services reach to a significant proportion of Turkish citizens. Figure 9: Fixed-line Subscribers and Penetration 24 Figure 10 illustrate trends in fixed voice traffic by call types since 2006. The figure shows that onnet traffic volume keeps its share and represents 86% of TT’s total traffic. On the other hand, the share of mobile traffic increases constantly. While the share of mobile traffic was 5.1% in 2006, it increased to 11.8% in 2011. Figure 10: Breakdown of TT’s Traffic (%) FTS operators provide local, intercity and/or international telephony services to the end users by using any technology over any telecommunication network and infrastructure. The local traffic volumes of FTS operators and Türk Telekom in quarters of 2011 are given in Figure 11. According to this figure, FTS operators reached a share of 7.8% as of the fourth quarter of 2011 while it was 2.7% in the first quarter of 2010. Figure 11: Shares of FTS – TT in Call Origination (local) Traffic Local and intercity traffic 25 Figure 12 illustrates intercity traffic volumes of FTS operators and TT from 2007 to 2011. In this period, the share of FTS operators and TT accounted 12.4% and 87.6% respectively. Figure 12: Shares of FTS – TT in Call Origination (intercity) Traffic Shares of FTS operators and Türk Telekom to mobile (based on traffic data) are given in Figure 13. Share of FTS operators’ calls in total traffic is increased to 30% in 2011 whereas it was %21.7 in 2011. Figure 13: Shares of FTS – TT in Call Origination (to mobile) Traffic Shares FTS operators and TT based on call volumes destinating abroad are illustrated in Figure 14. While having a share of 15.7% in 2007, FTS operators increased their market share up to 30.4% in 2011. 26 Figure 14: Shares of FTS – TT 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 15. While the share of FTS operators is 2.65% in 2007, its share reached 11.34% in 2011. Figure 15: FTS-TT Shares’ in Total Fixed Traffic The comparison of FTS operators’ total revenues with Türk Telekom’s total voice services is given in Figure 16. Market share of FTS operators is 7.9% in total voice services market based on revenues in 2011. 27 Figure 16: FTS Revenues – TT Voice Services Revenues Comparison (%) 1.2. Internet and Broadband Data Competition in the broadband internet services market is developing. After the opening up of ADSL and G.SHDSL ports of incumbent operator to the use of ISPs, resale of broadband access services commenced. On the other hand, ISPs started to be served by Türk Telekom’s infrastructure for the provision of broadband services via bit stream access. The breakdown of internet subscribers by connection type and growth rates is given in Table 2 on an annual basis. By the end of 2011 number of internet subscribers in Turkey reached up to almost 14.1 million. The amount of increase in the internet subscriber number is approximately 39%. Table 2: Number of Internet Subscribers 28 ADSL is the most common ways of broadband subscription in Turkey. This trend is illustrated in Figure 17. Number of ADSL subscribers has reached to 6.8 million with an increase rate of 2% since previous year. On the other hand, with the authorization of 3G services in July 2009, the number of mobile broadband subscribers is increased significantly and reached up to 6.45 million at the end of 2011. Figure 17: Number of ADSL Subscribers The breakdown of broadband technologies in Turkey and EU are compared in Figure 18. The share of DSL technology in Turkish broadband market is 90% whereas it has a share of 79% in EU. The share of cable modem technology in Turkey and EU are 15.3% and 6.1% respectively. * January 2010 data for EU, December 2011 data for Turkey Figure 18: Shares of Broadband Technologies in Turkey and EU 29 In terms of broadband access speeds, Figure 19 indicates that approximately 80 percent of subscribers prefer 8 Mbps connection. The second preferred package is the one including 1 Mbit/s connection with 9%. Figure 19: Breakdown of ADSL Subscribers by Access Speeds Figure 20 indicates development of market shares of broadband operators since 2006. Alternative operators’ market share increased to 9.1% in 2011. Market share of TTNet decreased from 98.9% in 2006 to 80.9% in 2011. Figure 20: Market Shares of Broadband Operators, (%) 30 Market shares of incumbent operators in retail broadband services market in EU countries are given in Figure 21. Incumbent operators’ average share in broadband market is 44% in EU countries, whereas TTNet has 81% market share in Turkey. *Source: Comreg, 2010 Q3 **July 2010 data for EU, December 2011 for Turkey. Figure 21: Shares of Incumbents and Alternative Operators in Retail Broadband Services in Turkey and Some EU Countries, (%) Fixed and mobile broadband penetration rates for Turkey and some EU countries are given in Figure 22. While the fixed broadband penetration of Turkey is 10.4% in Turkey, EU average is 25.6%. On the other side mobile broadband penetration of Turkey is 8.7% in Turkey, EU average is 6.1%. Denmark has the the highest broadband penetration rate (51.6%) in the EU. On the other hand, household penetration rate for EU and Turkey are 48% and 41.2%, respectively. 31 * Source: Comreg 2010 Q3 **July 2010 data for EU, December 2011 data for Turkey. Figure 22: Broadband Penetration Rates in Turkey and Some EU Countries 1.3. Mobile Market There are 65.3 million mobile subscribers with a penetration rate of 89%. Annual growth of mobile subscribers and penetration rates are given in Figure 23. The figure also reflects the number of 3G subscribers that exceeded 31 million in 2010 with the authorization of 3G services in July 2009. 32 Figure 23: Number of Mobile Subscribers and Penetration Rates Mobile penetration rates in some EU countries and Turkey are compared in Figure 24. Mobile penetration rate average for EU countries is 126% as of January 2010, whereas it is 89% in Turkey by the end of 2011. * Source: Comreg, 2010. ** June 2010 data for EU, December 2011 data for Turkey. Figure 24: Mobile Penetration Rates in Turkey and Some EU Countries, (%) 33 Profile of mobile subscriptions in Turkey is compared with some EU countries in Figure 25. Prepaid subscribers represent 65% of total mobile subscribers and postpaid subscribers represent the remaining 35%. In EU countries prepaid and postpaid mobile subscribers represent 54% and 46 % of total subscribers respectively. Share of prepaid subscribers in mobile market is much higher than EU average. * Source: EU 15. Progress Report **January 2010 data for EU, December 2011 data for Turkey. Figure 25: Prepaid/Postpaid Mobile Subscriptions in Some EU Countries Market shares of mobile operators in terms of subscribers are given in Figure 26. The market shares of Turkcell, Vodafone and Avea are 52.9%, 27.6% and 19.5% respectively. Figure 26: Market Shares of GSM Operators by Subscriber Numbers, 2011 34 The annual growth of total SMS and MMS numbers are given in Figure 27. The number of MMS fluctuates at low levels while the number of SMS tends to increase rapidly, especially after 2008. Especially young people, encouraged by operators’ promotions and campaigns, use SMS services frequently. While the number of SMS numbers passed level of 161 billion in 2011, the number of MMS reached 150 million. Figure 27 Number of SMS and MMS by Years Annual trend of ARPU for fixed incumbent operator and the average ARPU of three mobile operators are given in Figure 23. Average ARPU for mobile operators has reached to 19.95 TL. in 2011 while ARPU for fixed line has decreased to 22.05 TL. Figure 28: Average ARPU Values for Incumbent Operator and GSM Operators 35 Another indicator that is widely used for measuring mobile telephony usage is “minutes of usage” (MoU) that represents the average usage amount. MoUs in mobile telephony for some EU countries and Turkey is given in Table 3. The average monthly mobile usage in Turkey is 252 minutes. Table 3: EU MoU comparison *Source: Comreg (2011 Q1) ** March 2011 data for EU countries, December 2011 data for Turkey. 36 2. Regulations and Activities related to Competition 2.1 The Cooperation Protocol Between Competition Authority and the of Information and Communication Technologies Authority Information and Communication Technologies Authority has been assigned and authorised to carry out regulation and inspection activities for establishing and protecting competition in the electronic communication sector by the virtue of Article 6 (1) and Article 7 of the Electronic Communication Law numbered 5809 and dated 05.11.2008. On the other hand, Competition Authority has been authorised by the the Law on the Protection of Competition numbered 4054 and dated 07.12.1994, for diagnosis and punishment of agreements, decisions and practices which prevent, distort or restrict competition between any undertakings operating in or affecting markets for goods and services within the boundaries of the Republic of Turkey and the abuse of dominance by the undertakings dominant in the market, and monitoring any kind of legal transactions and behaviours having the nature of mergers and acquisitions that would decrease competition to a significant extent, and transactions related to the measures and establishments aimed at the protection of competition. According to the paragraph 2 of the Article 7 of the the Electronic Communication Law, Competition Authority shall take into account primarily ICTA’s views and regulatory procedures while investigating and auditing and taking all decisions about the electronic communications sector. Also, in the paragraph 1 of the of the Article 6 of the same Law requries ICTA to take Competition Authority’s opinion on issues related to breach of the competition when prescribed by legislation. Therefore, both authorities have some powers with regard to protection, achievement and improvement of competition in electronic communications sector of Turkey arising from the primary laws of the authorities. Within the scope of the said primary laws there are provisions which ensure coordination between the two authorities. In this regard, a requirement has emerged for both institutions to prepare a cooperation protocol between each other seeking to maintain a number of policy objectives. These entail, inter alia, the elaboration of issues which fall into their jurisdiction in ensuring the effective competition and enabling the information exchange and bilateral cooperation; and the necessary procedural framework required to this end. For this reason, “The Cooperation Protocol between Competition Authority and Information and Communication Technologies Authority” has been prepared and entered into force on 02.11.2011 after being signed by the Heads of both Authorities. The aforementioned Protocol aims at taking decisions in the realm of determination of the principles and procedures regarding cooperation of parties within their purview of ensuring, improving and protecting competition in electronic communication sector, prevention of conducts of operators that aims to make relevant authorities to reach decisions that contradicts with each other and/or that serves their best interests via complaints and notices to both or any of the authorities, acting in a joint manner in interpreting the relevant applicable law and concepts, and mutual cooperation and exchange of information. 37 Under the reffered Protocol, “Information Transfer”, “Taking Views, Coordination and Cooperation” and “Final Notification” issues are elaborated, and it is agreed tahat in January of each year, the parties shall come together at the level of Vice President to discuss important issues and developments arising out of the implementation of the protocol, and practices, operator activities, plans, investments and projections in the sector. Also, two authorities agree to to benefit from the other party’s facilities for the education and training of personel; arrangement of training, seminars, workshops and similar activities. 2.2. Views given to Competition Authority The paragraph 2 of the Article 6 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 merges and takeovers, takes into consideration primarily the Authority’s view and the regulatory procedures of the Authority.” In accordance with that provision, Competition Authority requests view and information from ICTA whilst investigating and taking decisions about electronic communications sector. In this context, in 2011, a total of 21 views about various matters were sent to the Competition Authority by ICTA, and distribution of these views on the basis of the subject is given in the table below. Table 4: Views given to the Competition Authority 2.3. Fibre Access Decision With the decision of the Information and Communication Technologies Board, dated 03.10.2011 and numbered 2011/DK-10/511, it is ensured that; For the purpose of encouraging new investments, technological development and production in the electronic communications sector, and within this context, promoting increase of newly emerging fibre internet access services and improving infrastructure based competition; Fibre access (FTTH/FTTB) is excluded from market analyses process for the five year period or till the percentage of fibre internet subscribers reaches the 25% of the whole fixed broadband subscribers, and Türk Telekom (the fixed incumbent) is required to comply with its commitment placed in its letter dated 24.08.2011 and numbered 809 that it provides resale and bitstream access at wholesale 38 level on fibre infrastructure to ISPs on non-discriminatory basis and notifies such wholesale tariffs before entering into force. 2.4. Retail Internet Service Providing by Türk Telekom Türk Telekomünikasyon Inc. (Türk Telekom) made an application to Turkish Competition Authority in order for issuance of negative clearance document and providing retail internet services to end users in addition to TTNET, retail arm of Türk Telekom providing broadband services. Then, Competition Authority asked opinion of ICTA regarding this application in accordance with the article 7 (2) of Electronic Communications Law (ECL) numbered 5809. After ICTA rendered its opinion about this issue, Competition Authority made a Board Decision dated October 10th, 2010 and numbered 10-71/1479-567. Based on this decision, Türk Telekom made an application to ICTA, aiming to provide retail broadband internet access service to end users directly. In this context, abovementioned application has been assessed by ICTA in accordance with related provisions of ECL, the Concession Agreement signed between Türk Telekom and ICTA, and other legislation and regulations, by taking into consideration the aforementioned Competition Board Decision. As a consequence, ICTA Board made a decision dated August 4th, 2011 and numbered 2011/DK-10/411regarding this application. In this framework, providing bundle services (voice call, internet, video etc.) to end users directly by Türk Telekom at retail level has been found appropriate and affirmed in terms of Turkish electronic communication legislation and the Concession Agreement, by taking into account the importance of providing innovative services such as multimedia coin box and triple play services in the marketplace in the face of convergence, on positive effects incentives towards deploying new network infrastructure such as fibre networks in addition to existing copper networks, and also taking increase in efficiency and consumer surplus. Therefore, Türk Telekom’s application for providing retail broadband internet access service to end users directly has been allowed to be valid as of January 1st, 2012, under the conditions of providing this service as bundle (voice call, internet and video etc.) together with other existing service(s) based on price (tariff) control obligation with corresponding retail tariffs to be reflected at wholesale level at the same time in accordance with the Article 9 of the Concession Agreement so as to prevent anti-competitive behaviours which are particularly peculiar to the vertically integrated markets, and also to enable this issue be considered by all the interested parties, to complete preparatory activities regarding foreseen process in the relevant markets, to determine and make other necessary regulations. 2.5. ISP Modem Devices Locking Applications Many complaints have been received through both electronic communications sector and Turkish Competition Authority regarding fixed modem devices supplied by Internet Service Providers (ISPs) to subscribers. In these complaints, it has been claimed that those modems provided by ISPs to customers had been locked by means of particular software/firmware so as to limit the use of these modems with only one ISP’s platform and getting service from only one ISP. It is also expressed that these locking applications would be hazardous to sectoral competition in the 39 marketplace. Moreover, it is advanced within the scope of such complaints received from the industry that even if internet subscribers own these modem devices after contract or commitment period during which modem charges are paid, these modems couldn’t be useful for alternative ISPs’ platforms. Therefore, these applications have restricted churn between ISPs. In this context, effects of modem locking applications have been scrutinised in terms of sectoral competition and consumer rights. As a consequence, modem locking procedure by using particular hardware, software and/or firmware provided from ISPs with specific contracts, is acknowledged as a switching cost and a barrier to entry to the market. Because, unlocking transaction of these devices is seen as difficult and time consuming for customers. Thus, these procedures could induce buying unnecessary and extra modems. In addition, it is thought that modem locking applications could reduce effects of LLU (local loop unbundling) and naked DSL regulations in the marketplace. Therefore, aforementioned anti-competitive behaviours have been prohibited by Board Decision dated April 13th, 2011 and numbered 2011/DK-10/182. 2.6. Regulations and Activities Related to Competition 2.6.1. Reference Access Offers Reference offers have a great importance in the sense that the conditions for interconnection with operators having significant market power 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 significant market power to publish Reference Offer is a widely accepted regulatory practice across the world. 2.6.1.1. Reference Interconnection Offers Draft reference interconnection offers of the three mobile operators (Avea, Turkcell, Vodafone) and Turk Telekom submitted due to the obligation to 'publish reference access offer', were examined under the frame of relevant legislation and opinions submitted within the public consultation process and approved with necessary amendments by ICTA. Reference Interconnection Offers are revised in case of necessity. Reference interconnection offers approved by ICTA are published on both ICTA’s and related operators’ website. According to relevant legislation, access tariffs that constitute an important part of Reference Interconnection Offers are approved by ICTA. Tariffs remains in effect until new tariffs are approved. In this context, interconnection tariffs are published for operators that have significant market power. With the regulation dated 27.09.2011 and numbered 2011/DK-07/501 regarding the interconnection charges, mobile termination rates for the calls originated abroad and terminated within Turkey have been excluded from the scope of reference interconnection offers. In 2011, regulatory operations have been performed in order to form Service Level Agreements related with interconnection services provided by Turk Telekom. In this respect, the principles and procedures were determined in relation with interconnecting operators’ additional demand 40 for points of interconnection and capacity, performing interconnection tests, fault repairs and routing and cancellation demands within carrier pre-selection method. Finally, the provisions of the Service Level Agreement have been approved and added to Turk Telecom’s Reference Interconnection Offer. 2.6.1.2 Turk Telekom Reference ATM/FR/ME Wholesale Internet Resale Offer In 2011 Turk Telekom Reference ATM/FR/ME Wholesale Internet Resale Offer (RAFMO) has been approved for the first time in accordance with the obligation imposed as a result of the relevant market analysis. RAFMO includes wholesale ATM/FR/ME Internet services provided by Turk Telekom to other operators. Services included in RAFMO are of vital importance especially for ISPs offering internet access to end users while configuring their network. Operators have been provided to benefit from the services in question with reasonable charges, terms and conditions mainly as a result of approval of RAFMO. The prices of Metro Ethernet Internet service, which is the most preferred service by the operators, are declined between 14 % and 32 % by the approval of RAFMO. Also new connection capacities of 125 Mbit/s, 2,500 Mbit/s, 3,000 Mbit/s, 4,000 Mbit/s and 7,000 Mbit/s are added to Metro Ethernet Internet service portfolio. 2.6.1.3. Turk Telekom Reference Leased Line Offer In 2011 Turk Telekom Reference Leased Line Offer (RLLO) has been approved for the first time in accordance with the obligation imposed as a result of the relevant market analysis, following public consultation and evaluations. Leased line services are the main inputs for operators for installation of electronic communication networks, expansion of the current network, interconnection between networks, data transfer and internet access. The leased line tariffs have been decreased significantly by the approval of RLLO. The tariffs of domestic traditional leased line services, which are the most preferred services by users, are decreased between 1 % and 66 % and also tariffs of point-to-point Metro Ethernet services have been decreased between 4.4 % and 58.4 % by RLLO. In addition, the fee for a pair of fiber optic cable that is used in installation of leased lines is decreased by 32 % to 3.8 TL/meter. On the other hand, circuit-based Metro Ethernet service that include real-time, critical and standard data parameters were launched under the name of TTunel. Also, new connection capacities of 3,000 Mbit/s, 4,000 Mbit/s and 7,000 Mbit/s were added to Metro Ethernet service portfolio. Benefits of end users are predicted to be increased by the increase in preferences and decline in tariff levels. Leased line tariffs in our country are one of the lowest tariffs among EU and OECD countries. 2.6.1.4 Turk Telekom Reference Offer for IP Level Bit Stream Access IP Level Bit Stream Access (BSA) is the main input for the retail broadband services and still the 41 most common method preferred by ISPs among the wholesale broadband access models. Turk Telekom Reference Offer for IP Level Bit Stream Access, which includes the terms, conditions and charges for IP Level BSA Service was approved in July 2007 for the first time. In 2011, partial updates which are stated below have been made in the offer; n Providing CLID info to the ISPs n Revision of application forms n Revision of fair usage levels 2.6.1.5. Turk Telekom Reference Unbundling Offer Turk Telekom Reference Unbundling Offer (RUO) was first approved in November 2006 and partially updated in 2011. In this context, critical revisions are stated below: Increasing the number of available LLU Exchanges from 357 to 779. By this revision, alternative operators have been able to access through LLU to 74 % of total PSTN subscribers and 81 % of total DSL subscribers. n n Provision of shared and full access services on a hybrid block on HDF. Transition to “energy pricing based on the actual usage” for alternative operators’ equipment in co-location rooms. n 2.6.1.6 Turk Telekom Reference xDSL Wholesale Internet Resale Offer Telekom Reference xDSL Wholesale Internet Resale Offer was first approved in November 2008. Then, with the BSA becoming more widespread, its prevalence decreased. But it has been revised in parallel with the other reference offers and was revised partially in 2011, with critical revisions summarized below: n Revision of tariffs parallel with the IP BSA tariffs. In order to increase efficiency in application of “Safer Internet”, availability of ISPs to change access methods on subscriber basis. n 2.6.1.7. Turk Telekom Reference Co-location and Facility Sharing Offer Turk Telekom Reference Co-location and Facility Sharing Offer that includes terms, conditions and prices for co-location and facility sharing services to be used as ancillary services for Interconnection, Bit Stream Access and Local Loop Unbundling, was revised partially in 2011. In this context, various revisions were made in “Purpose” and “Scope” articles in the section “Entrance to Turk Telekom exchanges and in-exchange Connection Services”. With this revision, expression of “and/or in-exchange F/O Cable Connection Demands” added to the relevant articles in order to meet the demands of operators for indoor F/O cable connection exclusively. 42 2.6.2 Other Access and Interconnection Regulations 2.6.2.1 Switching of ISPs and Cancellation of DSL Subscription Contracts In order to eliminate consumer dissatisfaction while switching their ISPs, some crucial revisions such as; Cancellation of DSL subscription by ISP without additional application of subscriber while during transporting fixed number without naked DSL, n n In the context of Switching ISP, usage of consumer information just for the switching have been made by Board Decision date 22.02.2011 and no. 2011/DK-07/87. Implementation of ISP switching in Turkey has contributed to ensuring competition in relevant market. Although TTNet (incumbent ISP) still has the largest market share in retail DSL market switching regulation contributed a lot to ISPs gain market share. Alternative ISPs’ market share of 7.72 % in October 2010 (when switching regulation started to be used in practice) has been raised to 10.32 % in November, 2011. As it is shown in Figure 24, during the period from October, 2010 to November, 2011, approximately 410.000 subscribers switched their ISPs with minimum service cut-off, ISP Switching implementation has been the main factor of the increase in the market share of alternative ISPs during this period. Figure 29: Cumulative Number of Subscribers Switched Their ISPs 2.6.2.2. Naked DSL Service Following the coming into force of Naked DSL, which is an internet access service that enables subscribers to have DSL internet subscription without fixed telephony subscription in December of 2010, consumer welfare in the entire market has been increased. 43 On the other hand, with the ICTA Board Decision dated 13.04.2011 and numbered 2011/DK07/178, incumbent operator has been warned to offer Naked DSL service in accordance with the principles and procedures in reference offer, and to take necessary measures urgently in order to prevent recurrence of the failures. Despite all, the total number of Naked DSL subscribers in November 2011 has reached 220,000. The majority of these subscribers are users who are subscribed to DSL for the first time. 2.6.2.3 Co-location and Facility Sharing Requests rejected by the Turk Telekom Co-location and facility sharing service, which is offered by operators that have SMP in relevant markets is an important part of access and interconnection services and it has critical importance in terms of entering the market and providing an effective and sustainable competition in electronic communications sector. Following the assessments of complaints forwarded to the Authority, as the co-location and facility sharing services are delayed or not offered by Turk Telekom, an administrative penalty is applied to Turk Telekom with the ICTA board decision dated 10.05.2011 and numbered 2011/DK-07/232. 2.6.2.4 Several Broadband Promotions Promotional offers of Turk Telekom for wholesale broadband services are also subject to approval of ICTA. Türk Telekom submitted a range of promotional offer for approval including New Customer Promotion, Sales Performance Promotion, Point to Point Metro Ethernet Promotion, ADSL/VDSL2 Service Suspension Promotion and Promotion for monthly fee and connection fee of Tariff Packages 1 Mbit/s – 1 GB and 1 Mbit/s - 2 GB. Those promotions came into force with the approval of Board Decisions on various dates considering issues such as enabling users to benefit the electronic communications network, infrastructure and services for reasonable fee, protection of the consumer rights and interests, encouraging the supply of electronic communications services and new investments with the aspect of promotion of the usage of the wholesale broadband access services, providing and protection of free and effective competition environment. In addition, after the disastrous earthquake happened in the province of Van, to support the victims of the earthquake campaigns implemented by both Government Agencies and NonGovernmental Organizations. In this context, Türk Telekom submitted the promotional offer including not to charge DSL-monthly fee in Van for a defined period for the approval of ICTA. The offer in question has been approved by ICTA with the board decision dated 01.12.2011 and numbered 2011/DK-07/620. 2.6.2.5 Discounted DSL Internet Tariffs for Disabled Citizens One of the vulnerable groups of consumers is disabled people. In this regard, studies have been carried out by the Authority to enable the disabled users to access internet with discounted prices. With the regulation issued by ICTA in late 2011, ISPs that provide DSL service to disabled end-users will have a discount of 25% on current wholesale broadband access prices. 44 According to the ICTA board decision dated 21.12.2011 and numbered 2011/DK-07/653, discounts will come into force as of 1st Feb, 2012. Disabled citizens whose disability ratio is 40% or more will have discount on several DSL internet packages. Thus, this regulation will provide economic advantage for our disabled citizens and support to increase the internet penetration in Turkey. 2.6.2.6 Turk Telekom Wholesale/Retail Daily and Hourly Internet Service Tariffs and Promotion With the ICTA board decision dated 04.08.2011 and numbered 2011/DK-10/411, with the conditions of “Retail tariffs would be reflected at the wholesale level" and "to be provided in bundle with other services (voice, Internet, video, etc.)” Turk Telekom was allowed to provide Internet service at retail level. In this regard, Turk Telekom submitted the offer for Wholesale/Retail Daily and Hourly DSL Tariff and Promotion to ICTA. Following the evaluations some changes have been made in the offer and, final tariff offer submitted by Turk Telekom was approved by the Board Decision dated 21.12.2011 and numbered 2011/DK-07/651. 2.6.2.7 Leased Line Regulations Turk Telekom’s tariff offers related to adding new bandwidths to Metro Ethernet Internet services in order to increase options for consumers were approved by the Board Decision dated 09.03.2011 and numbered 2011/DK-07/111. Radio Link equipment fees are approved by the Board Decision dated 16.03.2011 and numbered 2011/DK-07/129 by which nearly 50 % discount was made in Radio Link fees, and also users have been enabled to have diversified interface capabilities and increased the amount of capacity over the Radio Link equipment. Also, execution period of the campaign, which is approved in the year 2010 in order to reduce the costs, was extended 1 (one) year by the Board Decision dated 05.04.2011 and numbered 2011/ DK-07/170. If the leased lines with 4x155 Mbit/s capacities are owned by the same customer and working between the same ends, the group of this capacity is going to be charged as a 622 Mbit/s leased line circuit according to the campaign. On the other hand, in order to meet changing consumer needs in parallel with developing technology, to enhance consumer satisfaction and to provide different bandwidths, which are related to consumers’ requirements, Turk Telekom International Ethernet Leased Lines tariffs were approved by the Board Decision dated 13.04.2011 and numbered 2011/DK-07/176. Finally, SSG Internet Service tariffs were approved by the Board Decision dated 06.12.2011 and numbered 2011/DK-07/628. ISPs that use BSA and LLU to provide broadband service to end user can benefit from these services and applications. SSG Internet service is an asymmetric Metro Ethernet Internet connection. 45 2.6.2.8 Wholesale Line Rental With the Board Decision dated 27.07.2011 and numbered 2011/DK-07/394, Wholesale Line Rental (WLR) Reference Offer, which is expected to increase service based competition in fixed voice market, was approved as an annex to Turk Telekom’s Reference Interconnection Offer. Although legal ownership of line and telephone number is still belongs to Turk Telekom in WLR, billing of monthly rental charge and call services are handled by alternative fixed telephony service providers. In other words, WLR is a kind of resale of fixed telephony service to alternative fixed telephony service providers by Turk Telekom. In this regard, while determining monthly charge of WLR, which will be applied by Turk Telekom to fixed telephony service providers, alternative operators’ ability to compete with Turk Telekom’s retail telephony tariffs was taken into account. With the implementation of this service that will be offered in fixed voice market, the subscriber’s line is rented from Turk Telekom and subscriber is billed by fixed telephony service provider. In current situation, regulatory process has been completed and WLR will be implemented by the beginning of February 2012 following the necessary revisions to be made in fixed network by Turk Telekom. 2.6.2.9 Promotional Discounts on Fixed Interconnection Rates Current promotion of making some discounts in call origination charges for fixed alternative operators is extended until the end of 2012 in order to enable fixed alternative operators to compete with retail fixed telephony tariffs of with Turk Telekom. 2.6.2.10 Investigation on “Interconnection cut-off” between Türk Telekom and BN Telekom With the Board Decision dated Feb.10, 2011 and numbered 2011/DK-07/58, an investigation has been conducted in order to inquire the reasons for the “interconnection cut-off” between Türk Telekom and BN Telekom. As a result of the investigation, Board Decision dated May.18, 2011 and numbered 2011/DK-07/247, with below findings have been reached: Cut-off is related with the leased line circuit between the parties and has nothing to do with interconnection service, n Current interconnection structure between Türk Telekom and BN Telekom is not appropriate to provide backup facility. n and also it is clarified that determination of the transmission capacity of interconnecting leased line circuit and compensation of the costs for interconnection is in responsibility of the operator demanding for interconnection. In this context, Türk Telekom is obliged to meet the demands for backup on transmission for interconnection, when it is demanded by the other operators. Hence, ICTA has performed a regulation in order to ensure that operators take necessary backup measures for preventing interconnection cut-offs, which eventually prevents the consumer grievance. 46 2.6.3 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. With the new By-Law on Access and Interconnection published in September 2009, in order to maintain compliance with new Electronic Communications Act, there have been some amendments in the dispute resolution procedures carried by the Authority. Primarily, the maximum period that has to be passed to apply to the Authority for dispute resolution has been reduced from 3 (three) months to 2 (two) months. Furthermore, Authority has been entitled to determine the prices and provisions subject to dispute in 2 (two) months, excluding exceptional cases, starting from the date dispute resolution procedure have been initiated. With the changes in the new By-Law, 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' interconnection disputes have been evaluated and 9 (nine) cases have been concluded in 2011, in which the provisions, conditions, and charges have been determined regarding the disputed matters and currently four dispute resolution process are going ahead. Table 5: Dispute Resolution Procedures Concluded and Carried by the Authority in 2011 2.6.4 Access Agreements Access and interconnection agreements that have been signed between the operators are submitted to the Authority in accordance with the relevant legislation. The parties and number of agreements that have been submitted to the Authority by the end of 2011 within this context are shown in Table 63. Total number of contracts signed and submitted to the Authority is shown in this chart. However, contracts between operators and foreign operators are not included in this chart. 3 47 Table 6: Access and Interconnection Agreements Submitted to the Authority Agreements on access and interconnection submitted to the Authority have been examined in accordance with the provisions of laws and regulations. The provisions that include contradictions to the legislation are notified to the operators and it is ensured that the necessary amendments be made. 2.6.5. Accounting Separation and Cost Accounting Electronic Communications Law No. 5809 has a specific provision regarding accounting separation and cost accounting whereby ICTA has been empowered to impose accounting separation and cost accounting obligation to the operators having significant market power (SMP) in the relevant market. Accordingly such a provision provided by the primary legislation has strengthened the legal basis of this specific obligation which also aligns the Turkish regulatory framework with the EU acquis. In 2011, accounting separation reports prepared by the operators with SMP; Türk Telekom, Turkcell, Avea and Vodafone, have been submitted to the ICTA in the context of “Principles and 48 Procedures for Accounting Separation and Cost Accounting” and accounting separation reports are subject to detailed analysis of ICTA. 2.7. Design, Installation and Sharing of the Cellular System Antenna Facilities After Electronic Communications Law became valid, current regulation regarding the Antenna System and Facilities have been reviewed. Within this context, new Ordinance on Procedures and Principles Regarding Design, Installation and Sharing of the Cellular System Antenna Facilities have come into effect issued in Official Gazette dated 18 March 2011 and numbered 27878 after getting public opinions and completing the final version in order to take the place of former Ordinance on Procedures and Principles Regarding the installation and usage of Antenna and Co-Antenna System and Facilities issued in Official Gazette dated 16 April 2008 and numbered 26849. New Ordinance consists of provisions ensuring all kinds of broadcasts belong to the cellular systems to be made from specified emission points for design, installation and sharing to allow the use of by more than one operator of antenna facility. Besides, it contains also sanctions to be applied in case of failure the provisions of the regulation. With this new Ordinance, it is aimed to set out a general regulatory framework regarding design, installation and sharing to allow the use of by more than one operator of antenna facility to effective and efficient use of electronic communications sector; decrease environmental pollution with the cost of the investment and operational expenditures; support of the infrastructure investments for the establishment of a sustainable competitive environment and create capacity for the future technologies. 49 3. End User Regulations and Activities 3.1. Activities and Developments for the End-User Tariffs Tariffs of retail fixed telephony services are regulated within the scope of the Tariff Ordinance which came into force in the Official Gazette no.27404 dated 12th November 2009. In accordance with the Ordinance, unless otherwise stated by the Authority, the retail tariffs of operators with significant market power (SMP) are subject to “the notification procedure”. According to the notification procedure, tariffs shall be notified at least fifteen days prior to their entry into force. Temporary tariff changes shall be notified to the Authority at least seven days before their entry into force. Unless otherwise stated by the Authority, tariffs/promotions shall be come into force by the operator at the end of aforementioned time. The incumbent operator, Türk Telekom, is the only operator having SMP for the retail fixed telephony services and subject to the tariff control with notification procedure. Besides, in 2011 a regulation of setting an upper level limit, as 14.59 Kr/min, for retail voice calls originating from Türk Telekom network to fixed alternative operators’ networks has entered into force. Pursuant to the provisions in GSM Concession Agreements, which are signed between mobile network operators and the Authority, price ceilings (maximum values) of retail tariffs to be applied for the end-users by mobile network operators are specified and approved by the Authority. Thus, Mobile Electronic Communication Services Price Ceiling Chart have been specified and approved twice during 2011. Particularly, in accordance with the regulation made for Mobile Electronic Communication Services Price Ceiling Chart, price ceiling for the mobile to mobile and mobile to fixed call items of the chart are approved as 0.4154 TL/min (all taxes included) in April 2011 and the price ceiling for voice services are not changed in September 2011. Within this context, tariff ceiling for mobile to mobile calls and mobile to fixed calls are decreased approximately 80 % since 2007 and 2009 respectively. In addition to this, in 2011 price ceilings of some other services those take place in the Mobile Electronic Communication Services Price Ceiling Chart have been altered. In this context, price ceiling for domestic SMS services (which was 80 Kr/message previously) has been decreased to 0.4154 TL/message. ‘Fee for Detailed Bill’ has been divided into two categories: (1) Price ceiling for the ‘Fee for detailed bill information sent by mail’ has been determined as 57.71 Kr/page; price ceiling for the ‘Fee for detailed bill information sent by e-mail’ has been determined as 9.44 Kr/ bill. Furthermore, price ceiling for the calls to ‘Directory Assistance Service’ has been determined as 1.25 TL/min (all taxes included for all mentioned services). Furthermore, in the context of mobile electronic communication services, it is seen that the voice and SMS as well as 3G mobile data services became widespread thanks to device bundled promotions and advantageous tariffs offered to end users. Furthermore, it is observed that customers are closely interested in using all-net tariffs. In addition to this, operators’ offers along with the bundles including voice, SMS and data services became more widespread. 50 On the other hand, the Authority has carried out audits on the measurement and billing systems of operators on its own initiative or upon a complaint with respect to protection of consumer rights. 3.2. Principles and Procedures concernig to Safe Internet Service Internet penetration is increasing very rapidly all over the world and this trend makes it easy for users to access information. On the other hand, since Internet is very rapidly growing and it is impossible to control all content in the Internet, children can be exposed to unwanted content in the Internet and this may have negative effects on their spiritual health. It is considered necessary to protect families and children from Internet abuse, and to prevent sexual exploitation of children, hence “By-Law on the Principles and Procedures Concerning to the Safe Internet Service” according to the Board Decision dated 24.08.2011 and numbered 2011/DK-14/461 is implemented above considerations in mind so as to provide safer internet service to consumers. Safer Inter Service is a consumer right giving every customer a choice to select safer internet or using the Internet in its present form without any change. It is important to highlight that existing internet access service of the subscribers, who do not request Safer Internet Service, will continue to be provided in its present form without any change. 3.3 Electronic Communications Services Availability for Disabled Users In order to support disabled users while using electronic communications services, meetings have been held wtih participation of operators, non-governmental organisations, General Directorate of Disabled and Elderly and ICTA. Moreover, operators are requested to make disabled related information available via their web sites and this request was fulfilled by the end of 2011. 3.4 Ordinance on Consumer Rights in Electronic Communications Sector Ordinance on Consumer Rights in Electronic Communications Sector prepared pursuant to the Electronic Communications Law (ECL) no. 5809 was published in the Official Gazette dated 28 July 2010 and numbered 27655. The Ordinance covers procedures and basic principles regarding the rights of consumers who use electronic communications services, obligations of operators and subscription contracts signed between consumers and operators. The update process of the Ordinance is ongoing and the updated Ordinance is expected to enter into force in early 2012. 3.5. Ordinance on Quality of Service in Electronic Communications Sector Ordinance on Quality of Service in Electronic Communications Sector prepared pursuant to the Electronic Communications Law (ECL) no. 5809 was published in the Official Gazette dated 12 September 2010 and numbered 27697. The purpose of the Ordinance is to define the procedures and principles concerning providing services and/or operating telecommunications infrastructure at national and international quality of service standards. According to the public opinion, the Ordinance was updated and the Ordinance which updates the previous one was published in the Official Gazette dated 15.04.2011 and numbered 27906. 51 3.6. Draft Regulation on Processing of Personal Data and the Protection of Privacy in Electronic Communications Sector Pursuant to the Electronic Communications Law (ECL) no. 5809 existing regulation regarding processing of personal data and the protection of privacy in telecommunications sector has been revised by taking into consideration the EU Data Retention Directive 2006/24/EC and the E-Privacy Directive 2002/EC/58. According to the public opinion, the Draft Ordinance on Data Privacy has been prepared and submitted to the Board. The regulation is expected to enter into force in 2012. 3.7. Prepaid Credit Fraud In order to prevent prepaid credit fraud, actions which should be taken by the operators and Turkish National Police are determined with a Board Decision dated July 2010. The Board Decision aimed to reduce possible unjust treatments of consumers by enhancing awareness. The coordination with Turkish National Police is ongoing. 3.8. Regulation on Penalty Clause According to ICTA board decision dated 13.04.2010 No. 2010/DK – 10/233, in order to prevent exploitation of consumers and establish effective competition by strengthening consumers, it is prohibited to determine penalty clause that exceed total amount of discounts, rebates and other gains that provided by operators to consumers in standard consumer agreements. The above mentioned Board Decision was updated with the Board Decision dated 27.07.2011 and numbered 2011/DK-14/386. 3.9. Transfer of the Balance in Prepaid Systems According to ICTA Board Decision dated 29.06.2011 No. 2011/DK-14/324, in order to prevent unjust treatments of consumers, mobile operators will allow consumers switching from pre-paid to post-paid to use the balance that remains in their pre-paid lines after switching. 3.10. Services on Ring Tones and Mobile Games Upon the complaints regarding the mobile games services provided on the basis of try & buy; ICTA has regulated these services in order to remove the consumer dissatisfaction. According to the operator opinions, the update process of the ICTA Board Decision of March 2010 is ongoing. 3.11. Periodical Services Renewed Automatically Concerning renewed subscription packages (weekly, monthly, yearly), in order to prevent unjust treatments of consumers, operators are obliged to inform their subscribers within a reasonable time before packages are renewed automatically unless there is a request made by subscriber for cancellation according to ICTA Board Decision taken on December 2010. Operators are also obliged to inform their subscribers after the renewal of package or in case of cancellation by the 52 aforementioned Board Decision. Considering the operator opinions, operators were given time for harmonizing with the obligations till August 2011 by the Board Decision dated 22.02.2011 and numbered 2011/DK-10/84. 3.12. GSM Coverage Area Studies During the year of 2011, it was continued the GSM coverage expanding studies. According to these studies, it was planning to coverage all rural area which was more than 500 populated placed. There have been very important proceedings in this subject by means of so-called studies. For the next stage, all rural area, wich populations are less than 500 and the total number is 2128, will coverage by means of Universal Service Fund support. In this context, in order to determine the technical issues on coverage area, the coordination of our institution a working group were established and the group was determined the technical issues during the 2011. 3.13. Emergency Situations To be used in emergency situations (road closure, earthquake, avalanche, floods etc.), in the 25 region, where there is not GSM coverage, with special equipment and satellite transmission’s mobile base station deployment have been completed in the year of 2011. During the 2011, the base station had tested and finally it was used on the Van city earthquake which was occurred on 23 October 2011. The result was very useful to provide the suddenly increased mobile communications demand. 3.14. Along the Ankara-Konya High Speed Train Line, Supply GSM/3G Coverege Project Between Ankara and Konya State Railways (TCDD) service offered by the High Speed Train line (HSTL) on August 23, 2011. Due to lack of mobile coverage in this route and to providing coverage on the line, a protocol was signed under the coordination of the ICTA between TCDD, Turkcell, Vodafone and Avea. According to the protocol, it is planned to provide continues mobile coverage area until the January 2012. 3.15. Aplications in the Context of Right to Information Law There exist 4018 applications between 01.01.2011 and 31.12.2011 to the Authority in the context of Right to Information Law numbered 4982. Statistical information about the applications are given in the table below. 53 Table 7: Applications in the context of Right to Information Law Within Prime Ministry Communication Central (BİMER)-Direct Prime Ministry implementation, 3945 application coming to Prime Minstry Communication Center between 01.01.2011 and 31.12.2011 directed to ICTA by Ministry of Transportation, Maritime Affairs and Communication and these applications are answered. 3.16. Evaluation of Consumer Complaints As of the end of 2011, the number of consumer complaints coming to ICTA is 17730. The ranking of complaints according to the subject is given in Table 8. Tariffs, subscription, campaigns and invoice objections are amont the mostly complained subjects. 54 Table 8: Ranking of Consumer Complaints by Subject 3.17. National Cyber Security Exercise National Cyber Security Exercise (NCSE) - 2011 was carried out in 25-28 January 2011 with the participation of 41 public, private and non-governmental organizations (NGOs) including judicial and law enforcement agencies and various ministries as well as the ones from a diverse set of sectors such as finance, information technology and communication (ICT), education, defense and health. (See Figure 30). Six of those organizations participated in the exercise as observers. Approximately 200 officers who are experts in the fields of ICT, law and public relations from the participatory organizations attended the exercise. In NSCE – 2011, not only the technical competence but also the intra and inter organizational coordination capabilities of the participants were evaluated by measuring their responses to the cyber attacks in both the real and the simulation environment. 55 Figure 30: Sectoral Profile of the Participatory Organizations In the first two days of NCSE - 2011 carried out in 25–26 January 2011, the participants joined the exercise in their own premises. The last two days of NCSE - 2011 were collectively fulfilled at the Conference Hall of TOBB Economy and Technology University. During NCSE – 2011, the second national cyber security exercise held in Turkey, both real attacks and written scenarios were actualized in order to determine the technical competence of the participants, and to have the participants gain experience for future attacks. 3.18. Security of Electronic Communications “Communiqué on the Change of the Communiqué on the Application of TS ISO/IEC 27001 Standard regarding Security of Electronic Communications” had entered into force after being published in the Official Gazette dated 23 March, 2011 and numbered 27883. According to the Communiqué, Operators Signing Authorization, Operators Signing Concession Agreements, Operators Offering Satellite Telecommunications Services, Infrastructure Operation Service Operators, Fixed Telephony Service Operators, Operators Offering GMPCS Mobile Telephony Services, Mobile Virtual Network Operators, Internet Service Providers, Operators Offering GSM 1800 Mobile Telephone Services on board the operators having annual net sales of 1.000.000 TL and above are obliged to comply with TS ISO/IEC 27001 or ISO/IEC 27001 standard and to have the certificate of conformity from an accredited institute until 1 March 2011. In this context, based on the 2011 Audit Plan, in order to control whether the obligations in the Communiqué are fulfilled or not, two operators’ administrative and technical headquarters were audited. In 2012, the auditory activities will be continued. 56 4. Authorization 4.1. Authorization Regulations 4.1.1. Ordinance on Authorization for Electronic Communications Sector An amending study which aims to comply more to the EU acquis, reflect the technological developments and meet the requirements faced during the implementation of the “Ordinance on Authorization for Electronic Communications Sector”, published in the Official Gazette dated 28.5.2009 and numbered 27241, pursuant to the Electronic Communications Law (ECL) no. 5809, and the regulation regarding “Definitions, Scope and Period of Electronic Communications Service, Network and Infrastructure” accepted with the Board Decision dated 07.05.2009 and numbered 2009/DK-08/230, pursuant to the mentioned Ordinance, has been started and the studies related to the amendments on these regulations have been finalized in 2011. In this scope Ordinance Amending the Ordinance on Authorization for Electronic Communications Sector published in the Official Gazette dated 23.09.2011 and numbered 28063 and the regulations regarding “Definitions, Scope and Period of Electronic Communications Service, Network and Infrastructure”, Notification Form and Right of Use Application Form has been updated by the board decision dated 03.08.2011 and numbered 2011/DK-08/407. 4.1.2. Rights of Way The Rights of Way covers constructing of any kind of electronic communications infrastructure and their supportive equipments under, above or over, public and private proprietary areas and the use of such properties for the purpose of constructing, altering, disassembling, controlling, maintaining, repairing and etc. with a view to provide electronic communications services. Regulation Regarding the Rights of Way in Execution of Telecommunication Services was published 2 May 2006 on the Official Gazette. Legal deficiency regarding to this issue was overcome through forgoing Regulation by providing procedures and principles about Rights of Way. It is the basic aim of the Regulation that operators granted rights of way in liberalizing sector can construct their own infrastructure and they can eliminate the dependence on infrastructure which is impeding the competitive rules. Existing Regulation was revised with the aim of making up the deficiency and complies with the related articles of ECL numbered 5809 and the “Draft Regulation” is prepared. In this framework, “Regulation Regarding the Rights of Way in Execution of Electronic Communications Services” was published in the Official Gazette dated 3 February 2010 and numbered 27482. Furthermore, right of way permissions for installation fiber system on the Bosphorus and the Dardanelles were carried out persuant to Decision of Council of Ministers dated 18.5.2009 and numbered 2009/15002 and approval of Ministry of Transport, Maritime Affairs and Communications dated 5.6.2009 and numbered 796. In 2011, there is one right of way permission given for 57 installation of fiber system on the Dardanelles to Türk Telekomünikasyon AŞ by Decision of Board of ICTA The task and competency regarding the rights of way was given to Ministry of Transport, Maritime Affairs and Communications, General Directorate of Communications by the 1st subparagraph of 13th article of decree law numbered 655 published in the Official Gazette dated 11 November 2011 and numbered 28102 regulating the task and organization of Ministry of Transport, Maritime Affairs and Communications. 4.1.3. The usage of GSM Frequency Bands for 3G Services In this study, to ensure more effective and efficient use the resources of the country, to provide 3G services with lower cost by operators, to promote the consumer’s welfare, to widespread more quickly the mobile broadband services which requires high capacity in the rural area, to create effective competition in the mobile electronic communications market, to ensure the market’s faster development and the harmonization with the related EU legislation, are to being aimed and the studies that is related to this issue are currently continuing. 4.1.4. The Holding Separate of the Accounting Record of 2G-3G Regarding by law on authorization for electronic communications sector, relating to the holding separate of the accounting record of 2G-3G services which are offered by operators with the context of the concession agreement signed between them and ICTA; the concerning ways of the separation of accounting record had been decided with the ICTA board’s decision 20.07.2011 dated and 2011/DK-08/375 numbered by means of carrying out a study with the related operators, the ministry of finance and the undersecretaries of treasury. 4.2. Authorization Activities 4.2.1. Services As of 2011, in Turkish electronic communication industry 333 operators operate under 538 authorizations. 4.2.1.1. 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.. 4.2.1.2. 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 58 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 subscribers via proper terminal devices. 4.2.1.3. Infrastructure Operating Service Infrastructure Operating Service is the installation and operation of transmission infrastructure providing opportunity for serving operator and users electronic communication services excluding telephone services. 4.2.1.4. 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. 4.2.1.5. 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. 4.2.1.6. Wired Broadcasting Service Wired 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. 4.2.1.7. 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. 4.2.1.8. 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. 59 4.2.1.9. 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 noncellular, local and/or regional and installation and operation of relevant infrastructure. 4.2.1.10. 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. 4.2.1.11. 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 and getting permission of the Authority. 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. 4.2.2. Amendment on the Authorization Agreement of Türksat A.Ş. Per article numbered 67 of Electronic Communications Law, dated 5.11.2008 and numbered 5809, which is added to the article numbered 33 of the Law, dated 4.2.1924 and numbered 406; Turksat Inc. is authorized in some extra areas as well such as “all kinds of activities in ICT market related with e-government portal that enables offering of governmental services in electronic media as well”. In order to add those kinds of issues to the Authorization Aggreement which was signed between Turksat Inc. and ICTA on 18.05.2005 and renewed on 19.12.2005; in line with Council Of State and Board Decision, dated 08.06.2011 and numbered 2011/DK-08/274, the Authorization Aggreemnet of Turksat Inc was renewed again on 28.06.2011. The mentioned Aggreement was signed by Dr. Tayfun ACARER, president of Board, on behalf of ICTA and by Dr. Özkan DALBAY, director general, and Ali OK, deputy director general, on behalf of Turksat Inc. 4.2.3. R&D Inspections In accordance with the IMT2000/UMTS concession agreements, the obligations of operators to make the investments of electronic communication network whose some parts should be supplied from the vendor which has a R&D center in Turkey and some parts should be supplied 60 from the vendor which has a attribute as SME are inspected. At the result of the inspections, the ways relating the carrying out of these obligations had been clarified with ICTA Board’s decision 06.12.2011 dated and 2011/DK-08/627 numbered. 4.2.4. All-Risk Insurance In accordance with the IMT2000/UMTS concession agreements, a study had been carried out to ensure the sending of a copy of the all-risk insurances to ICTA within the time, which are insured and renewed by operators for the electronic communication infrastructures, networks, facilities and services. Following this study, the board decision 21.12.2011 dated and 2011/DK-08/649 numbered was taken by ICTA board. 4.2.5. Treasury Share Upon the inspection reports of the operators who has an obligation to pay the treasury share sent to ICTA, prepared by the secretariat of treasury, in terms of obeying this obligation or not, the required studies was carried out to ensure as to whether the obligation of paying the treasury share was fulfilled lawfully regarding the concession agreement and the related legislation, the penalty had been settled to the operators regarding the concession agreements and this situation had been declared to the related operators and the undersecretaries of treasury. 4.3. 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, research-development institutions and the public institutions, for research and development and/or testing and/or trial and/or demonstration purposes. In 2011, five “LTE”, one “WiMAX”, one “TETRA”, one “Digital Radio System”, one “Wi-Fi for Air Vehicles” and one “GSM 1800 for Air Vehicles” trial permissions – including demonstration purposed ones - were granted. In addition, in the scope of 2011 Audit Plan, two companies holding trial permissions were audited. 61 5. Numbering 5.1. Regulation Activities 5.1.1. Regulation on Value Added Electronic Communication Services In order to provide an efficient numbering regyme for value added electronic communication services, by the Ordinance published in Official Gazette dated 04.05.2011 and numbered 27924, it is regulated that services including adult services shall be provided by numbers under “900” national destination code, premium content services shall be provided by numbers under “898” national destination code and other value added services which do not include adult content and are not premium content services shall be provided by numbers under “888” national destination code. In addition, by the Ordinance published in Official Gazette dated 25.08.2011 and numbered 28036, it is regulated that these value added services shall be transferred under new numbers before 04.09.2012. Also, by the Board Decision dated 29.03.2011 and numbered 2011/DK-08/157, it is decided that, all subscriber lines are to be unbarred for the calls to 888 destination code and barred for the calls to 888 destination code in default and operators shall provide the opportunity to their subscribers to easily bar or unbar the lines for the calls towards such numbers. 5.1.2. Withdrawal of 522 Numbers By the Board Decision dated 27.10.2011 and numbered 2011/DK-08/559, 522310xxxx block is withdrawn from Teknomobil Uydu Haberleşme AŞ and 522 destination code is emptied. 5.2. Number Assignments Number assignments made in 2011 are given below. As result of these assignments and annual numbering fees paid in 2011, 8.5 million TL (including VAT) numbering right of use fee was recorded in total as revenue for the Treasury. 5.2.1. Geographical and Nomadic Number Assignments In 2011, 286,000 geographical and 260,000 location independent (nomadic) numbers were assigned. 5.2.2. Short Numbers In 2011, 113 was assigned to Ministry of Health as “Doctor Information Line”, 122 was assigned to Disaster and Emergency Management Presidency as “AFAD Information Line”, 190 was assigned to The Presidency of Religious Affairs as “Religious Information Line”, 147 was assigned to Ministry of National Education as “Education Information Line” and 173 was withdrawn from Ministry of National Education. 62 5.2.3. NSPC and ISPC Assignments In 2011, 3 ISPCs (International Signaling Point Code) and 80 NSPCs (National Signaling Point Code) were assigned to the operators. 5.2.4. Carrier Selection Code and Access Code Assignments In 2011, 1 carrier selection codes and 59 access codes under 811 national destination code were assigned to the operators. 5.3. Number Portability Mobile number portability started on 09.11.2008 and fixed mobile portability started on 10.09.2009. As of the end of 2011 almost 37 million and 140 thousand porting were recorded in mobile and geographic numbers, respectively. As of the end of 2011, 28 operators are connected to Number Portability System. 63 6. Spectrum Management and Applications 6.1. Work on New By-Laws “The By-law on Industrial, Scientific and Medical Instruments (ISM)” which has been written on the basis of Articles 6 and 36 of ECL, has come into force being published at the Official Gazette dated 23.10.2011 and numbered 28093. 6.2. Frequency Allocation and Emptying the Bands 6.2.1. Allocations to Public Access Mobile Radio Services (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 the related legislation, frequency demand applications have been evaluated during the year 2011. Former frequency assignments of Ankara Metropolitan Muncipality EGO and ASKİ Directorates General have been cancelled due to the allocation decision regarding that 450-470 MHz band of being allocated to Broadband Wireless Access services and decided to be released. On the other hand, 2 MHz band (as 415.5000-417.5000 MHz/ 425.500-427.5000 MHz) released from NMT band was allocated to digital featured trunk and community repeater systems and frequencies assigned to 13 operators which were authorized for Digital TETRA and DMR systems in 2011. Device and frequency information of 62 distinct operators providing services in which no limitation in number of operators needed, have been registered into MFYS (National Frequency Management System). Additional information update of 50 of the operators above has been done regarding the KRS (User Permit System). 6.2.2. Emptying the 450–470 MHz Frequecy Band Within the scope of activities started in order to plan frequencies for Broadband Wireless Access Systems, the frequency assignment for PMR/PAMR systems from 450-470 MHz spectrum has been stopped and releasing process has been performed during 2011. Due to the schedule defined before, regarding the releasing of this band, throughout the country, almost all of the frequencies that are formerly under use of General Directorate of State Airports Authority are released. 64 6.2.3. Other Allocation and Coordination Activities 6.2.3.1. Activities Related to Satellite Services Frequency requests from Ministry of National Security and General Staff for GOKTURK 1 and 2 satellites have been evaluated and approved. Coordination procedures with ITU are proceeding regarding the frequencies requested by Ministry of National Security for these projects of Turkish Armed Forces. Frequency coordination transactions in accordance with ITU-R regarding the frequencies of TURKSAT 4A, RASAT satellites and various satellite and terrestrial services have been conducted. In the scope of Satellite Telecommunication Service, GMPCS Mobile Telephone Service and Satellite Digital Platform Service Business Administration, frequency evaluations and permission transactions were conducted in 2011. Due to various national and international organizations, arranged in 2011, temporary satellite up-link device using permissions were given to many foreign press and TV companies. 6.2.3.2. Activities on Aeronautical Communication Systems Frequency assignments are made from aeronautical band to the related airline companies regarding the applications done by Directorate General of Coastal Safety/ Directorate of Radiocommunication (KEGM-TİM). 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. 40 different frequency assignments have been done in 2011 in total. Various co-works have been made with General Staff, General Directorate of State Airports Authority, General Directorate of Civil Aviation and Turkish Airlines etc. about frequency coordination and assignment. FMG 15, an annual official meeting of ICAO/FMG, has been participated and regarding the aeronautical communication systems, necessary frequency coordination issues have been held. A proposal, in order to adjust Turkish assignments in COM2 table has been proposed to FMG and is accepted. Adjustment procedure will begin after EUROCONTROL makes the necessary update to frequency assignment software (SAFIRE) upon the order of FMG. 6.2.3.3. Activities on Maritime Communication Systems Due to the protocol that was signed with Directorate General of Coastal Safety/Directorate of Radiocommunication (KEGM/TİM) in accordance with ECL Articles 42, 43 and Temporary Article 4, various works were done regarding the maritime communication systems. 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 has been assigned upon the request made by KEGM/TİM. n 65 Various co-works have been made with General Staff, UMA and Turkish Coast Guard Command about frequency coordination and assignment. n 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. A regular meeting, arranged in coordination of UMA, named Research and Development Committee (ARGEK), has been participated. WG FM PT-46 10th working group meeting has been hosted and participated in 29-31st March 2011 in Istanbul. General Stuff, Turkish Coast Guard Command, Turkish Maritime Forces and KEGM-TİM have also been participated to the aforementioned meeting. In coordination of Department of International Relations, spectrum management education has been given to participants from various countries between 21st and 24th of November 2011. 6.2.3.4. Activities on GSM/UMTS Bands Coordination works regarding the usage of frequencies and codes along the border with our neighbor Republic of Azerbaijan on behalf of Nakhchivan Autonomous Republic have been conducted and finalized. In this context, a protocol has been signed and come into force in 8th of July 2011. 6.3. Devices which are approved for Importation in the Context of Frequency Planning Due to the decision of the Board 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 2011. In this context, the devices which have restrictions on their frequency bands and licenses have been evaluated, due to the annual Ordinance which is being published by Undersecretariat of Foreign Trade since 2005. Statistical information about the transactions performed in between 01.01.2011 and 31.12.2011 is shown in the table below. Table 9: Statistical information for Notification Form 66 7. Information Technology Projects 7.1. Central Equipment Identity Register (CEIR) Central Equipment Identity Register was established in order to register the legally imported devices and disconnect the smuggled, lost and stolen devices or the ones with cloned IMEI number from electronic communication network. In this scope, the applications such as Importation Followup System (IFS), Information and Denouncement Center System, Public Prosecution System, Denouncement Follow-up System working on a developed hardware and data base system. Thorough these applications, many transactions will become automatic and the processes will run effectively, accurately and rapidly. The system which directly affects all mobile phone users, GSM operators, importers, public prosecutors and courts is being developed continuously in accordance with current needs on security and digitizing. Figure 31: Central Equipment Identity Registry Structure 7.2. Number Portability System It was accompanied with The NTS Operation Coordination Committee (NTS-İKK) studies in order to supply maintenance/repair and operational support services for Number Portability System designed as a central reference for number portability processes. The agreement composed from these studies was sent to the relevant operators and contractor and then signing procedure was followed. Costs per operators were computed and announced in the intervals as defined in the agreement. 67 Connection processes for new operators that demand to connect NTS were followed and ensured them connect to NTS after fulfilling their responsibilities. 7.3. Disaster Recovery Center Disaster Recovery Center has been established to provide that Authority’s all information systems work uninterruptedly by saving information system’s backups in a safe location (Türksat Gölbaşı campus). Standard states for all project milestones were controlled in the manner specified in the project agreement to be completed during 2011. After Türksat A.Ş., the project conductor, announced to Authority in 03.10.2011 that project was completed and ready for acceptance; live tests were done by coordinating all stakeholders to check if the established backup information systems were working as they defined or not. After live test passed successfully, agreement titles was checked clause-by-clause to ensure that contractor has succeeded all its obligations defined in the agreement, it was confirmed that contactor fulfilled all its obligations and then the project acceptance was completed in 29.12.2011. Information Security Management System Certificate, ISO/IEC 27001, required by Disaster Recovery Center Project, was taken on 27.09.2011 7.4. National Monitoring System Software One of the most important projects of ICTA, National Monitoring System (NMS) which is used for wireless communication traffic control, inspection and determination of wireless usage violation is composed of technical quipment and infrastructure as well as software. NMS which is used by central office and 7 regional offices of Telecommunication Authority is used for the following: n Measuring frequency usage, broadcast areas and some technical values, n Inspecting AM/FM radio and TV broadcast quality, n Determining interferences and eliminating them, n Determining illegal wireless stations, n Collecting statistical data for frequency management. 7.5. Electronic Signature Within the 2011 audit plan of the ICTA, two of the ECSPs (Elektronik Bilgi Güvenliği A.Ş. and TÜRKTRUST Bilgi İletişim ve Bilişim Güvenliği Hizmetleri A.Ş.) supervised at their administrative and operating centers in the framework of Ordinance on the Procedures and Principles Pertaining to Telecommunications Authority’s supervision duties published in the Official Gazete Ref No 26478 on 30 March 2007. Audit work of TÜRKTRUST Bilgi İletişim ve Bilişim Güvenliği Hizmetleri A.Ş has been completed. On-site audit of Elektronik Bilgi Güvenliği A.Ş. has carried out and the findings of audit were answered by the ECSP. Completion of the audit report is underway. 68 International standards and regulations in other countries which are referred by ICTA in our regulations are closely monitored and needed changes in the regulations are made. However, works on dissemination of electronic signature and ensuring interoperability are ongoing. In this context, solution development work for incompatibilities with the electronic signature creation and verification software’s is in progress. Draft electronic signature profile was prepared and finalized within the scope of comments of related parties. To make signing and verification software’s of ECSPs compatible with this profile in a certain period of time, getting board decision process is ongoing. 7.5. Registered E-Mail With the Turkish Trade Law No. 6102 which was published in the official gazette No. 27846 and dated 14 February 2011, task of making secondary legislation on registered e-mail (REM) was given to ICTA and “Ordinance on the Procedures and Principles Pertaining to the REM System” and “Communiqué on Processes and Technical Criteria Regarding REM System” was published in the Official Gazette No. 28036 and dated 25 August 2011. The law and the secondary legislation is going to come in to force in 01.07.2012. According to secondary legislation, draft principles and procedures on REM Directory and addresses of REM accounts has been prepared and retrieved in-house comments are under consideration. After the evaluation of the in-house comments, the necessary process to get comments from outside will be started. To review applications of legal entities wishing to operate as Registered Electronic Mail Service Provider to ICTA after 1 May 2012, audit guide is being prepared. Works on preparing principles and procedures on REM Directory and addresses of REM accounts and audit guide are underway. 7.6. Internet Domain Names By the Article 35of Electronic Communications Law, designation of the organization or institution that will allocate internet domain names (DN) and procedures and principles regarding the management of domain names shall be determined by the Ministry of Transportation, Maritime Affairs and Communications”. Internet Domain Names Ordinance was published in the Official Journal dated 7 November 2010 and was put into force by Ministry, in this regard ICTA is entitled in setting up and operating .tr Network Information System (TRABİS) or having a third party set up and operate in the scope of principles and procedures determined by the Authority ICTA is currently working on following topics: 69 7.6.1. Dispute Resolution Mechanism (DRM) This topic is about a communiqué work about DRM which should be regulated within the scope of Ordinance. A Draft Communiqué was prepared in collaboration with WIPO experts, and lawyers competent in trade mark, patent and intellectual property legislations. This Draft is revised in: n a workshop hosted by ICTA on 19/07/2011 n International Informatics Law Congress on 19/11/2011 with participation of relevant experts. DRM regulation will be put into force only after TRABİS system activated. 7.6.2. DN Life Cycle Communiqué DN life Cycle Communique includes the regulations about; n Terms and conditions of TRABİS, n Application, cancellation, re-allocation of DN, n Terms and conditions of Registrars, n Management of restricted and closed list, n Relations in between: o TRABİS, o Registrars o Dispute Resolution Providers, o Court of justice, o Financial instructions. 7.6.3. TRABİS Consultancy Service To establish TRABİS in line with international standards and having high qualifications, it is planned to have a consultancy service including: 70 n capacity planning, n design, n determination of requirement, n testing security, load, functions of the system n monitoring the system for 6 months after establishment n supporting redelegation procedures of ICANN Technical requirement of this consultancy was prepared and procurement of this service is supposed to be in the first quarter of 2012. Later, with the support of consultancy, design and realisation TRABİS implementation project is aimed. 71 8. Activities Related to Internet Security and Internet Regulations Internet is an important tool that develops day by day and gives service for different purposes, it plays a significant role in our lives. Internet can facilitate and make things difficult in order to our usage. Like most of the devices in our lives sometimes negative usage styles can occur. Internet department has been created in 2007, on one hand it works to determine the crimes committed on the Internet described in article 5651, on the other hand it makes efforts to make contribution to studies needed due to Internet’s dynamic structure. Studies with international organizations continued for content regulations. In this comprehension, affiliated to International Association of Internet Hotlines (INHOPE) and information exchange has already started. One of the most important agenda topic of 2011 is Safer Internet Service (SIS). Before that the Project was planned to put into effect in 22 February 2011 but it was postponed to 22 august 2011 and finally it has been came into force in 22 November 2011 after test period. Internet department has made the necessary studies for safer hinternet service and prepared software and database infrastructure. Whether in Safer Internet Service content or other sides of internet usage, internet department continued to the activities of awareness. 8.1.Legal Basis Law numbered 5651 and dated 04.05.2007 on “Regulation of Publications on the Internet and Combatting Crimes Committed By Means of Such Publications” published and entered into force officially in 23.05.2007. Published in official gazette numbered 26680 and dated 24.10.2007 on “Regulation on Procedures and Principles about Issuing Certificates to Access Providers and Hosting Providers by Telecommunication Authority”, published in official gazette numbered 26687 and dated 01.11.2007 on “Regulation on Collected Usage Internet Providers for Commercial Purpose”, published in official gazette numbered 26716 and dated 30.11.2007 on “Regulation on Procedures and Principles about Publications on the Internet ” and lastly published in official gazette numbered 26803 and dated 01.03.2008 on “The Amendment of the Regulation on Procedures and Principles about Issuing Certificates to Access Providers and Hosting Providers by Telecommunication Authority” 8.2. Activities concerning the Conscious Use of Internet Activities for awareness for safe, effective and conscious use of internet can be summarized in 5 titles: 72 1. Web Portals 2. Awareness publications 3. Safer Internet Day 4. Other Activities 5. Researches 8.2.1 Web Portals 8.2.1.1. Safe Web Portal (www.guvenliweb.org.tr) Safe Web has been established in May 2008 to aware all social classes about safe, effective and conscious use of internet. Safe Web Portal consists of 3 basic titles “Families, Educators and Security”. Except these titles news, articles and researches about actual subjects can be found under the “Actual” title. Recent and future studies are also shared with users under title of “announcements/activities”. In “internet statistics” section, other countries’ and Turkey’s internet statistics are shared and users visits this section frequently. “Advices for Safer Internet” has been vocalized within awareness activities to provide regularity and productivity in internet cafes controls. “Business audits for collected use provider of internet for commercial purposes” e-learning module has been developed on portal for local authorities benefits. Besides, on internet portal there is access to e-book of “advices for parents for safe use of Internet”. News, articles and announcements from Turkey or from foreign countries to aware internet users are shared on Safe Web portal under related titles. In order to provide the safe, effective, correct and conscious use of internet, contents both families and educators can benefit from contents that is shared under the families, educators and safe captions. Besides in order to aware people and take necessary precautions about the malicious use of internet, internet users are warned about the problems that can be run into while surfing internet under the security title. In our country internet user’s population increase speedily, over three years of publishing an important gap has been filled via Safe Internet Portal. For our country Safe Web is the first internet portal that publishes about safe use of internet. Among developed countries like European countries, USA, Canada, Australia, Safe Internet is the fourth most visited Web Portal. In our country web sites that make publications about safe use of internet service has started to rise, as the social sensitivity and interest on this topic has increased, the need for web sites like Safe Web portal will also going to increase. 73 8.2.1.2. Safe Child Portal (www.guvenlicocuk.org.tr) “Safe Child” Internet Portal has been prepared for children to surf safer on internet, started after making its opening on “Safer Internet Day” on February 2010. Safe Child Portal developed to teach children how to surf safely and have fun on the internet at the same time. Portal members have increased gradually during 2 years of period. Safe Child Portal has been prepared in an attempt to teach how to use internet in a safer and conscious way to our primary school aged children and it is designed to involve games combining education, amusement and different types of interactions. Studies to develop and enrich the content of the portal still continue. In safe Internet Portal; there are sections like Safe Child Club, Playground, My Page, Happy Boxes, What Happened, What Will Happen, Information Cupboard, Amusement Bridge and Web Scout. Safe Child Portal has two years of history but it already won recognition of children. “16.000 members” is one of the indicators of this recognition. The child members of Safe Child Portal give support for development by making comments and critics. 8.2.2. Activities aimed at conscious use of Internet 8.2.2.1 Advice manual for safe use of Internet “Advices for Safe Use of Internet” manual was prepared for children by scanning great numbers of local and foreign sources and by benefiting from foreign examples. The manual being talked about has been approved by Board of Education of Ministry of Education and in September 2009 in accordance with National Education Directorate’s opinions, 12 million manuals were published. It has been delivered to all primary school students and teachers for free of charge in 2009-2010 school year by National Education Ministry Publication Department and by financial support of Ministry of Communication. This manual aims to lead children and young people to conscious and correct use of internet and educate them about this subject. Also English version has been prepared to distribute in activities organized in foreign countries. “Advice for Parents for Safe Use of Internet” manual is dispatched in “Safer Internet Day” events in February 2010. Guide booklets devoted to children and to parents have been prepared by taking in consideration manuals published in European Union countries and the brochures prepared within COP(Child Online Protection) in structure of ITU (International Telecommunication Union). There is always access in e-book format to manual of safe use of Internet for children and parents. These booklets which includes advices for safe use of internet for children and parents can be found in e-book format on Safe Web Portal. 74 8.2.2.2 Manuals Either by using manual of advice for safe use of Internet or by using manual of Safe use of Internet, two brochures named “Safe Internet Guide” and “Advice for Safe Use of Internet” have been prepared. This brochures helped parents and children to be conscious internet users. 8.2.3 Safer Internet Day Safer Internet Day is an international activity, aimed to raise awareness among all internet users particularly children and parents, organized since 2004 by the support of European Union Commission by InSafe. For the first time in Turkey it is organized in 23.02.2010 in Istanbul under the title of “Impish Child of Our Family: Internet”. Safer internet day activities have been organized coordinately with Internet Commission. With the approval of European Union, InSafe coordinator, executives from development office of ITU directorate and a lot of local resident academicians, NGOs and private sector representatives have been attended to the event. This year, Activities of Safer Internet Day was held in 8-9 February 2011 in Ankara under the title of “Cyber Reality of Life: Internet” with coordinate of Internet Commission Ministry of transportation and the Board of Telecommunication. Like event in 2010, activity held in 2011 took place with national and international participants, with the participation of representatives of civil society organisations (CSO), academics and industry. In the scope of the activity many institutions, CSOs and industry representatives attended the "Internet Cafes Model for Turkey" was held under the name of a workshop on 8 February 2011. Safe Internet Day event with introductory information about the program and list of participants, can be reached by www.gig.org.tr site. Morever many guests who have international respect attended this event as a speaaker. In addition, Safer Internet Centre which operates in Germany, "Klicksafe" at the organization's representative, Dilek Atalay, and participate in these activities as well as awareness-raising efforts paid a working visit to observe the our Agency. On the occasion of this visit, TV spot published in Germany and many European countries, under the name of "Where is Klaus," adopted Turkish and Turkey signed the protocol and for the publication of the Turkish adaptation of the film made. Again, on the occasion of Safer Internet Day Activities 2010 prepared "CEM AND THE INTERNET" for his short movie together with the safe use of the Internet other videos themed Funny Boxes section of our website can be reached. Safer Internet Day activities around the world as it is an event organized to bring together the experiences of countries drawn up by INSAFE www.saferinternetday.org block at the Internet, the activities carried out by opening a page English presentation made on behalf of Turkey. This introductory section, can be accessed from www.saferinternetday.org/web/turkey/home address. 75 8.2.4 Other Events Internet's safe, effective and correct use of awareness-raising activities related to the scope of both private and state-owned educational institutions (primary schools, high schools and universities) and various seminars are organized. In these seminars, special presentations prepared for primary school students and high school students. In addition, participation in the activities of the universities are organized on this issue by providing students with the knowledge and experience is shared. National and international symposia, seminars, conferences and forums as a speaker and the listener through the Internet to participate in a safe, efficient and correct use of specific issues are discussed, and recommendations should be submitted for consideration by the participants. In December 2010 until November 2011 that such activities can be listed as follows: Mutual education seninar on “Safe use of Internet” by Ministry of Internal Affairs and Telecommunication Presidency, n “The safe use of Internet: Practical Advices for Families” in the context of internal education programme presentation (20 January 2011, Ankara), n n “Safe use of Internet” broadcasts on TRT Radio 1 and Police Radio (26 January 2011, Ankara), The “Social Media: Past, Present and Future” in the context of the seminar on “Public Relations and New Media in Youth Activities” prepared by Youth Services Division Presidency in coordination with IJAB(Center for International Youth Service of the Federal Republic of Germany) n n Dispatching the materials to children and parents about “Safe use of Internet” In the closing ceremony of “World Child Games” held by Ankara Metropolitan Municipality(01 May 2011- Ankara) “Concious use of Internet Meeting” within the context of “Workshop on Entegre Programme Speeding Social Changing” held by The Ministry of Development (26 May 2011, Ankara) n 5.th International Computer and Education Technologies Symposium “The Samples of World Applications of Safe Internet Usage and Inspection of Awareness Activities and Advices for Turkey ” presentation (22*24 September 2011, Elazığ) n n “Activities of ICTA and Safe Internet Service” presentation in “Electronics and Communication Sectors of UN Candidate Countries” held by Cullen Organization(26-27 September 2011, Tirana) Panel on “Tomorrows Technologies:Internet” Organization Days(6 October 2011, Istanbul), 76 n in the context of Cebit International “Safe use of Internet and Safe Internet Service” in the context of education programme devoted to Division Managers by Ministry of Internal Affairs Education Department n The meeting on “Consciously, Safely and Effectively Usage of IT Tools” in the context of Fatih Project between representatives from General Manager of Education Technologies of Ministry of Education and TIB.(18 October 2011- Ankara) n n Activities and seminars on “Safe Internet” organized with a variety of NGO’s. n Activities and seminars on “Safe Use of Internet” organized with Private and Public Schools. 8.2.5.Researches In the scope of Internet Day, research with the topic "Social Network User Habits of Minors" was conducted by Internet Committee with the support of METU and TIB. Outcomes of the study were published in the conference named "Virtual Reality of the Life: Internet" held in February 9 2011. 500 children using social network sites between the ages 9 - 16 participated in the study, 48,1% female and 51,9% male. About 70% of the children goes online at least once a day and 66% of them uses social network sites and spend an average of 72 minutes in these sites. Above figures show that children spend most of the time on social networks when they go online. Facebook is the most popular social network site with a 99% share. Since the time spent online on social networks is too much, most of the children stated that social networks have a negative impact on their daily life. While 60% of the children involved in the study stated that social networks have negative impact on time allocated for studying, 25% indicated that they spend less time with their families and friends. It draws attention that children are not aware of some kind of online threats from social networks. For instance, 50% of the children said that they do not read the terms&conditions document when they sign-up. In social networks, mans/boys are sharing their information more than girls. 25% of children share their home address, 29% shares phone numbers, 51% shares their family members' names with everybody or with their “friends”. In addition, 65% of children states that they are adding strangers to the “friend list” with ease. Although the minimum age that is required to join a social network is 13, there are chieldren of age 9-12 in the observed range. This shows us that, small children are faced to risks of social networks. As a result of this observation, it is obvious that families, educators, ISP's, non-government organizations, social network owners and government should take some steps to protect children while using those social networks: 77 Families: Should learn and be familiar about internet, social networks; should track their children about what they are doing in those social networks; should control the time they spend in computer, internet. n Educators: Should inform their students about possible risks of online world, internet and social networks. n ISP's: Should provide easy to use software or system to families, for use in home; should inform users about possible risks. n n NGO: Should do awareness organizations, should inform people. Social Network Owners/Developers: Should provide tools, services especially to protect children from online risks. Should inform, warn children about what they share. n n Government: Should do regulation, prepare laws to protect children (and maybe all) in online world. 8.3. Activities Within Authorizatıon & Certıfıcatıon In the last year, hosting operation certificate were prepared and sent to the relevant for 299 application. For applications of hosting operation certificate, in order to confirm the identity information of the singular person, and in some other cases, in order to get addresses of hosting companies and the other people; necessary operations and procedures continue to be done for taking advantage of Population and Civilization Operations General Manager Identity Sharing System. 8.3.1. The Protocol Done With Ministry of Internal Affairs According to the articles of the Law numbered 5651 Regulation of Publications on the Internet and Combatting Crimes Committed By Means of Such Publications, the information of Collected Usage Provider for Commercial Purpose as known Internet Cafes were being sent to Communications Presidency by Civilian Governmental Superiority so far. These operations were being saved twice to e-Internal Module of Ministry of Internal Affairs. In order to prevent this double recording, some meetings were organized with Ministry of Internal Affairs and Communications Presidency. With the protocol, prepared as a result of these meetings, after 01.11.2010 the interface between Communications Presidency and Civilian Governmental Superiority was shut down. By the help of the new interface that is the result of this protocol, it is aimed to prevent of work loss with recording data from just one point. After 01.11.2010, the information about Collected Usage Provider for Commercial Purpose is recorded just on e-Internal Module of Ministry of Internal Affairs. These records are being sent to our Presidency by Ministry of Internal Affairs. 78 8.3.2. Symposium of Managers of Editorial Office In order to achieve to the targets that is aimed by 5651 numbered Law and to provide monotonous application for Collected Usage Provider for Commercial Purpose, within Ministry of Internal Affairs and Presidency; a training to Managers of Editorial Office of metropolis towns and also the other cities. The first one was done between 31 October and 2 November, the second one was done between 6 and 7 December in Antalya. Problems and solutions were argued at the result of the meetings. In the trainings and meetings, the basic three points come into prominence about the problems of Civilian Governmental Superiority on internet cafes, and these are: n Administrative Problems: à Absence of personnel to care about the topic in Editorial Office à The problems on composing the audition commission à In order to provide audition commission work efficiently, to compose the budget that can be used by commissions, n Regulations Problems: à Absence of deterrence of different punishments beside of money fines, à There is no education of people who manage internet cafes, and as a result, people make money from this industry apart from specialists, à There are inconsistent executions because of more than one regulations, à Occurrence of inconsistency because of, both municipality and civilian governmental presidency charge to certificate, à Objections to Peace Penalty Law Court to reject for money fines, and according to the Law of Faults, these fines are rejected by the court. Some other courts find rejections inappropriate because of the regulations, they suggest that the money fines in the regulations also should be in the relevant law, à Universities, city halls etc. collected usage providers include in the regulation, n Execution Unity: à A circular should be published in order to provide execution unity with re-evaluating the procedures, à To clarify the status of game halls and internet cafes (there is an unfair competition because of game machines in internet cafes and also internet is provided is some game halls), 79 à In order to inform parents, clearance and to keep rights, publishment from official web pages by collected usage internet providers those permitted by civilian governmental superiorities, à In addition to this, it is aimed to coordinate other action items in order to eliminate other possible problems. 8.4. Statistical Data 8.4.1. Statistics of Hosting Certificates Singular people who have taken hosting certificate prefer singular person certificate because of the easiness in applications of certificating other than juridical certificate, in addition, flexibility and easy to enter the sector are other reasons for this preference during the last year. Table 10:Statistics on Certification of Hosting Providers, 2011 8.4.2. Collected Usage Internet Providers for Commercial Purpose In order to achieve that collected usage internet providers (internet cafes) can record data faster and to trace this data more accurate, with the protocol which is done between Ministry of Internal Affairs and our Presidency, after 01.11.2010 the recording data and tracing actions have been turned over to Ministry of Internal Affairs. After this date, our Presidency control and trace the recording data, and will continue to support and help to Ministry and civilian governmental superiority about the relevant topics. From 01.03.2011 the data which in the database of Ministry of Internal Affairs have been copied to database located in our Presidency. With this procedure the data about the collected usage internet provider which is both in Ministry of Internal Affairs and our Presidency. During this data equation processes between Ministry and Presidency, the double data in Ministry and Presidency were deleted, so more accurate data could be obtained. In order to protect the up to date of the data of collected usage internet providers those locate in the Ministry and Presidency, the program in our Presidency were developed. By means of this application, the changes in the Ministry database for daily are saved to our Presidency 80 database every day. In addition to this, the changes on the info of collected usage provider by the civilian governmental superiorities also are updated in our Presidency database by means of the application. In order to view and trace the info of the collected usage providers, in our Presidency Collected Usage Internet Provider for Commercial Purpose Trace System application was developed. With this trace system, the detailed info of collected usage providers in the database which equals with the data comes from Ministry of Internal Affairs, can be traced and searched with the wanted criteria from collected usage providers. Many kind of reports of collected usage providers can be taken by means of the trace system. These reports can be taken also as an image on the map, and desired details can added to the reports. In case of absence of the info of collected usage providers, collected usage providers can be detected as whose info is missing, and also these collected usage providers can be reported with missing info. According to the record in our Presidency, there are 957 civilian governmental superiorities. 91 superiorities of these superiorities have not yet recorded any data to the system. But, it is not clear that, this situation result of absence of the providers or missing of the recording data. When it is looked to the distribution of the internet cafes, it is seen that count increase in the cities those have small intensity of population. Figure 32: 10 Cities having the Biggest Number of Internet Cafes 81 8.4.3. Obligation to Inform As per Law no 5651, article 3 entitled “liability to inform” and article 5, paragraph 1 of the Regulation dated 30.11.2007, commercial or economic content providers, hosting providers and access providers are liable to provide accurate, complete and up-to-date contact information on their own web site, in a way to be directly available to the users on their home page, under the title contact. As per article 9 of the Law no 5651, persons whose rights have been violated due to the content in internet publications are entitled to demand the related content be taken down. The person, whose rights have been violated, may request that his/her response letter prepared for demanding content take down, be published on the related web site. This is only possible through contact information published on web sites. Such contact information will help to reach the content provider. If the person cannot reach the content provider, he/she should refer the same claim to the hosting provider. Regulation concerning contact information is a significant standardization activity to contact internet actors and content interlocutors; it will serve significantly in daily life to prevent problems in reaching interlocutors on internet addresses. Therefore, providing contact information pertaining to internet actors on web sites, as required by the legislation, will be significant for the enforcement of article 9. The process of tracing the introducer info is doing by the Presidency in the border of the regulation that is spoken, these absence are trying to be removed with warnings to the collocutor. In this range, 1st paragraph of the 18th article of the specified regulation; as a result of the Law with numbered 5651, managerial money fine starts from 2000 TL to 10.000 TL can be given by the Presidency to the content supplier, hosting provider or service provider with commercial or economical purpose who does not satisfy the requirements those specified in the 14th article. Figure 33: Violation of Obligation to Inform, 2011 82 In the Violation of obligation to inform those sent to the Presidency, denunciations by the people are interestingly high. It can be thought that the society has a significant development on the usage of internet with knowing the own rights, with looking that mistreated people who had contacted to the specified internet address, come to the Presidency with the knowing the obligation of enlightenment. It is seen that, the required introducer info occurs in the web page that is relevant to the denunciation when evaluating the informing done to the Presidency. There are also internet addresses who content their communication info, also content partially and also there are internet addresses who have not communication info because of they publish out of the borders and they cannot find collocutor. In some internet addresses who had been denunciated, there is no definite info that these internet addresses have commercial or economical purposes. 8.5. Safer Internet Service According to the directive 2011/DK-10/91 “Principles and Procedures Concerning Safer Internet Service”, duties and responsibilities of the Presidency are being performed since the date of approval of board on 22.02.2011. Mentioned directive has been replaced by 2011/DK-14/461 on 24/08/2011. Safer Internet Service (SIS) has been provided to all individual subscribers free of charge and consists of two profiles called “Child Profile” and “Family Profile”. Subscribers can demand SIS from their Service Providers in different ways, select from these profiles or they can opt out from the service any time. Those subscribers, who do not request for Safer Internet Service, keep using current form of service without any change. Opting in the service does not require installing any software. 8.5.1 Safer Internet Booklet To promote the use of Safer Internet, a comprehensive booklet namely “Safer Internet for Our Future” has been published in two languages (Turkish or English) and distributed in several national and international meetings, panels and conferences. Booklet contains articles related to both threats on the Internet and its benefits, works of Internet Regulations Board for raising awareness of families about Internet, surveys related to Internet tendencies in Turkey, reports about “ihbarweb.org.tr”, “guvenliweb.org.tr”, “guvenlicocuk.org.tr” and other studies of Internet Regulations Board. 8.5.2. Commercial Movies Since TV is assumed to be the most appropriate media to reach the audience, 3 video films have been produced. To broadcast as governmental spot by means of RTUK each of them produced 15’’ long. All films use the slogan “Choices are Freedom” and ends with the SIS portal spot “guvenlinet.org.tr”. 83 1st film is the launching film which introduces the SIS motto and emphasizes that the service is free of charge and easy to use. 2nd film emphasizes that Children might be exposed to harmful content on Internet and introduces Child Profile. 3rd film introduces Family profile with its sub-options and expresses that users can opt in and opt out SIS any time easily. Figure 34: Safer Internet Films 8.5.3. Safer Internet Web Portal To give more detailed information about Safer Internet Service, a web portal has been designed. The domain name is “www.guvenlinet.org.tr”. Interfaces for querying profiles and making appeals and objections to the profiles as explained in the article 11 of the directive are enabled in the portal. In addition to the articles, polls and animations are also used for SIS to be understood clearly. Portal content may be classified as follows: 84 n Safer Internet Service n Advices for users related to safer and efficient use of Internet n Querying and appeal-objection interfaces 8.5.3.1. Safer Internet Service Basic use of ISS is explained in this section. What the SIS is, how to opt in-out, who can request service and similar questions are answered with articles and animations. Moreover, an application to help users in selecting between profiles and sub-options is present on the portal. 8.5.3.2. Advices for Users Articles and animations related to issues like “Rules to be careful on Internet”, “Benefits of Internet”, “Efficient use of Internet” and “Awareness to threads on Internet” are published in this section. In due course, quantity of the articles shall increase and issues shall be described more comprehensively. 8.5.3.3. Query Interfaces Interfaces for users to query web site’s category and to make objections in case they think that category of a web site should change can be found in this section. 8.5.4. Posters and Flyers To introduce Safer Internet Service and Portal, 1000 posters and 5000 flyers planned to be printed but owing to great demands from educators from all around the country, amounts were revised to 10.000 and 300.000 respectively. The materials are still being distributed to schools and colleges and a sharp increase in demand is observed. 8.5.5. Appeals and Objections GİH listelerinin doğru ve güncel tutulmasına yönelik olarak en büyük girdiyi kullanıcı dönüşleri oluşturacaktır. Bu kapsamda GİH portalından alınacak olan ihbar ve itirazlar hazırlanmakta olan arayüz üzerinden görevli operatörlerce değerlendirilecektir. İhbar ve itirazlarla birlikte kullanıcının İSS ve profil bilgileri de alınacaktır. 8.6. Internet Hotline Service 8.6.1 Projects and Activities n Classification of reports about the crimes mentioned in the law 5651 and collecting the technical information that is used by Lawful Evaluation Unit. n Technical analysis of all the submitted reports. Confirmation of submitted reports (IP address, domain name and URL’s), attaching technical analysis reports and forwarding to the persons concerned. n Determining the priority of the reports as the number of total reports are very high. 85 n In order to warranty the efficiency of the process; observation, intervening, testing and filtering the records before they enter the process. n Web sites or special reports submitted via ihbarweb.org.tr, phone (0312 582 82 82), sms, e-mail; are forwarded to Internet Hotline Center for previous analysis. Workflow consists of the following. n Analysing, evaluation and determining the category of the reports submitted to Internet Hotline. n Manually preparing the technical analysis report of analysed reports by their priority, printing the record and technical analysis report and forwarding to Lawful Evaluation Unit. n Finding and recording the contact information of reported web sites. 8.6.2. Report Statistics Statistical information of all the reports submitted to Internet Hotline of Information and Communication Technologies Authority Communications Presidency as of 27.10.2011 is shown in the graph below. Reports submitted in 2011 has increased reasonably compared to other years. Figure 35: Number of Reports by Year Reports submitted about obscenity, sexual exploitation of children and prostitution are composed of for more than 80 percent of the total reports. 86 Figure 36: Categorical Breakdown of Catelogue Complaints As it is known, in May 2011 severeal campaigns are organized on the Internet to protest Safer Internet Service (SIS). As a result of these campaigns, in May 2011 many reports are submitted for protest. Most of the reports are made through the Internet Hotline Website, "ihbarweb.org.tr". Statistical information about the web sites blocked by Communications Presidency as of November 2011 is shown in the graph below. As can be seen, 95% of the blocked web sites includes obscene and child sexual abuse content. 87 Figure 37: Categories of Blocked Web Sites 8.7. International and Institutional Activities In order to enhance international cooperation in Internet content regulation issues and to combat illegal contents, Internet Hotline department of Telecommunications Presidency became a member of Inhope, in General Assembly meeting held in May 18, 2011 in Vilnius, the capital of Lithuania. Inhope (International Association of Internet Hotlines), was established in 1999 within the framework of European Union "Safer Internet Action Plan" to constitute hotline services which aim at fighting illegal content on Internet and set up coordination among those hotline services. Inhope consists of 40 members from 35 countries around the world such as U.S, Australia and EU countries. Inhope membership of our Presidency has a great importance in terms of international cooperation to fight against illegal content especially in child abuse and content regulation issues. Safer Internet Programme has been coordinated by EU since 1999 in order to combat against illegal and harmful content. “Safer Internet Programme” (2009 - 2013) (A multi-annual Community programme on protecting children using the Internet and other communication Technologies) has a total budget of £ 55M. Accession process to Safer Internet Programme is leaded by our Presidency and Ministry for EU affairs. The main purposes of the 5 year -2009 to 2013- plan are: combating illegal and harmful content and stimulating safer use of Internet and other communication tools for education of Internet users especially children, families and keepers. 88 In order to achieve mentioned goals above, budget will be distributed among following expenditure activities: n Raising public awareness n Fighting against harmful content n Promoting a safer online environment n Establishing a knowledge base International organizations and institutions are informed about projects coordinated by our Presidency in various international meetings. In this context, a briefing was presented about content regulations in Turkey and Safer Internet Service to the participants of OSCE (Organization for Security and Co-operation in Europe) at Supplementary Human Dimension Meeting held in June 7–8 in Vienna, capital of Austria, with the topic ”Promotion of Pluralism in New Media“ An informative meeting was conducted in June 12, 2011 in OSCE Vienna Office and participants were informed about the Safer Internet Service. OSCE Representative on freedom of the Media, Dunja Mijatovic, Director Andrey Rikhter, senior consultant Roland Bless and consultant Nora Kovacs were among participants and the session is governed by ICTA vice president Mr. Ayhan Beydoğan. President of ICTA Mr. Tayfun Acarer met with EU-Turkey Joint Parliamentary Committee cochairman Helene Flautre and with the committee headed by General of the European Union’s Directorate General for Enlargement, Stefano Sanino. Topic of the meetings was Safer Internet regulations and related activities overseen by ICTA. In the same day, following above meetings, German parliamentarian İsmail Ertuğ was informed about Safer Internet Service. Next day, two consecutive meetings with the topic "Safer Internet regulations and related activities overseen by ICTA” were conducted. In the first meeting, the group headed by Directorate-General for Information Society and Media, Robert Madelin and in the second one, Directorate General for Enlargement, Turkey Desk Chief, J. C. Filori, Christos Makridis and Ivo Schutte were those among participants. The group headed by president of ICTA, Mr. Tayfun Acarer visited several EU and EC commissioners in Strasbourg and Brussels to inform them about the details of Safer Internet Service. In this context, in September 20 2011, Head of the Department of Media and Information Society of Commission, Jan Malinowski, Director of the Office of the Council of Europe Commissioner for Human Rights, Işıl Gachet and Deputy Executive Secretary of the European Social Charter, Leyla Kayacık; in September 22 2011, European Parliament rapporteur for Turkey Ria Ooomen-Rujiten and Marietje Schaake; in September 23 2011, Information Society vice general manager Antti Peltomaki, international affairs department chief Eddy Hartog and Olivier Pascal, responsible for the enlargement and relations with neighboring countries and on the same day in afternoon Jean Christophe Filori were met and informed about content regulations in Turkey and particularly, about the details of Safer Internet Service. 89 In a conference in Tiran, capital of Albenia, (organized by Cullen International which is a company concentrated on telecommunication, e-trade and media sectors) with the aim of evaluating information society activities and electronic communication in EU candidate countries, Internet content regulations conducted by our Presidency and Safer Internet Service were introduced. Under ITU (International Telecomunication Union) , within the framework of COP: Child Online Protection Project, a study related to Safer Internet Service and awarenes raising activities of our Presidency are submitted to ITU. The full article can be found at www.itu.int/council/groups/ wg-cop. Awareness raising activities of our Presidency to protect children against online threats and Safer Internet Service explained in this paper were presented in October 2011 in Genava, Switzerland. In the international area, Safe Internet Service (SIS) was more introduced in Strasbourg and in Brussels on September 20 to 23 in the visit of the Council of Europe and the European Union. A meeting was held with foreign mission representatives in 27.07.2011 in Ankara. In 08.07.2011, representatives from our Presidency attended to the meeting of Internet Regulations in OSCE Zone. Informative notes, presentations and reports about Internet regulations in Turkey are prepared and shared with related institutions regularly, especially with Ministry of Foreing Affairs and Ministry for EU Affairs. 90 9. Technical Regulation and Standardization Activities 9.1. Constructing E-Market Surveillance and Inspection Infrastracture The Purpose of constructing E-Market Surveillance Infrastructure System is that leads to easy inspections for market inspectors and effective market surveillance and inspection operations. And the other advantage is ensuring harmonization with European Union Countries E-Market Surveillance Systems in a synchronous. According to this Project at the market surveillance and inspection regarding radio telecommunications terminal equipment is intending; n Fettering data regarding market surveillance in an electronic form, n Ensured mutual data flowing and following data flowing, n Accessing registered information in the course of inspection n To analyze information and determine instantaneous n Sharing results with EU’s related bodies in case of necessity Project consists of three components in total. For the first component, it is aimed to develop mutual cooperation with Europe by twinning activities. In the second component, building e-pgd software using IT infrastructure and training on this software will take place. IT hardware will be supplied in the third component of the project. The project is in the second part of the IPA-1 program. Financial Agreement of the second part of IPA-1 projects were signed in 11.04.2011 has entered into force in 19.09.2011. In the twinning component, the project fiche is in circulation around the Europe in order to take twinning partnership offers. As a result of the meetings with Central Finance & Contracts Unit in order to prepare tender dossier; it is decided to take SEI support for second and third components. In this context, SEI ToR’s of service and supply components are prepared and sent to Ministry for EU Affairs. It is expected that SEI support will be accepted. 9.2. Market Surveillence Laboratory As a conclusion of efforts on establishing international recognition of the tests which were performed at ICTA MSD and well confidence for test results, MSL was accredited in 28.04.2009 with the AB-0259-T accreditation number and laboratory still goes on its activities in this scope. The second annual necessary inspection in context of accreditation was made on 21.06.2011. All branches in MSL was inspected and technical meetings with top management, quality director, laboratory director and laboratory personel was done at audit according to the TS EN ISO/IEC 17025 standard, TURKAK guideline and procedures. On the other hand, In this audit it was 91 observed that all laboratory units; EMC laboratory, RF laboratory, LVD laboratory, SAR laboratory and TBR laboratory activities are carried out in the scope of 17025 standard. Also, issues such as tests performed in MSL, applied methods, laboratory records, calibration situations of the devices used in the tests and some similar issues were controlled. After the ICTA MSD’s second inspection audit, audit reports prepared by inspectors and as a conclusion of these audit result reports, continuation of accreditation of the tests with the same concept was approved in 30.09.2011 by the decision of TURKAK within scope of AB-0259-T numbered accreditation. It is needed to perform comparison tests in related laboratories in context of TS EN ISO/IEC 17025 standard and TURKAK legislation. A series of works performed in this scope in year 2011 in Market Surveillance Laboratory. SAR comparison tests were performed on a GSM mobile phone within May-November 2011 between ICTA MSD SAR Laboratory and Romania ICMET (Research and Testing National Institute) SAR Laboratory. Positive results were observed. n In the period March-April 2011 and July-October 2011, respectively two comparison tests were performed including Input Current, Unloading of the capacitors in the device, Temperature, Flow Current and Protective Conductor Current and Electrical Resistance” on a DECT phone between our Authority LVD laboratory and Emittel TR LVD laboratory and on a GSM phone between our Authority LVD laboratory and AT4 Wireless, S.A. LVD laboratory positive results were achieved. n Total of 74 devices were tested in the EMC, RF, LVD, SAR and TBR laboratories of Market Surveillance Laboratory Directorate in 2011. Distribution of the devices according to laboratory groups is as follows; 66 - EMC, 59 - RF, 63 - LVD, 45 - SAR and 12 - TBR. In 2011, 43 of 74 devices which were tested, failed at least one of the tests performed in a laboratory group. The other 31 devices are achieved from all tests successfully. Also one device was tested in order to meet the demand of the third party. The total number of the devices tested in MSL is given in Figure-1. The data in graphics denotes the number of devices tested in each laboratory unit. Moreover, for each device different tests are applied within the laboratory units. In this context in EMC laboratory 201 tests, in RF laboratory 403 tests, in SAR laboratory 54 tests, in LVD laboratory 408 tests and in TBR laboratory 72 tests are performed resulting in a overall total of 1138 tests in the Market Surveillance Laboratory in 2011. An expenditure amounting to approximately 1.42 million TL would be needed if these tests were performed through purchase of service from another laboratory company. Information about the number of market surveillance tests applied to each device can be seen in Table 11. 92 Table 11: Number of Devices Tested In Each Laboratory Unit, 2011 93 10. Inspection Activities 10.1. By-Law on the Supervision Activities of the Information and Communication Technologies Authority Regulation and supervision activities of ICTA constitute the most important instruments performing the Authority’s tasks and competencies given by Laws. The first paragraph of article 59 of the Electronic Communications Law no. 5809 titled “Supervision” states that: “The Authority shall be entitled to inspect natural persons or legal entities that perform activities in electronic communications sector, pertaining to the tasks of it prescribed by this Law on its own initiative or upon complaint.” and the paragraph sixth of the same article states that: “Procedures and principles pertaining to the implementation of this article shall be determined by the Authority within a by-law”. Besides, By-Law on the Organization of ICTA was published in the Official Gazette dated 8 June 2011 no. 27958 and a new department named “Department of Sectoral Supervision ” has been formed into revised organizational structure of ICTA. Within the context of the all these regulations, it has became obvious the necessity of preparing a new regulations on the auditing activities of the ICTA. By-Law on Procedures and Principles on the Supervision Activities of the Telecommunications Authority is repealed by the new By-Law on the Supervision Activities of the Information and Communication Technologies Authority was published in the Official Gazette dated 14 December 2011 no. 28142. 10.2. Internal Directive on the Supervision Activities of the Information and Communication Technologies Authority An Internal Directive on the Supervision Activities of ICTA has been approved by a Board decision dated 2 November 2011 and put into force on 14 December 2011. The internal directive foresees the procedures and principles pertaining to the implementation of the new By-Law on the Supervision Activities of ICTA. Under the scope of the new regulations, Authority’s supervision procedures have been largely revised and new auditing activities have been initiated throughout the last months of the year 2011. 10.3. Inspection of Electronic Service Providers Within the 2011 audit plan of the ICTA, two of the ECSPs (Elektronik Bilgi Güvenliği A.Ş. and TÜRKTRUST Bilgi İletişim ve Bilişim Güvenliği Hizmetleri A.Ş.) supervised at their administrative and operating centers in the framework of Ordinance on the Procedures and Principles Pertaining to Telecommunications Authority’s supervision duties published in the Official Gazete Ref No 26478 on 30 March 2007. Audit work of TÜRKTRUST Bilgi İletişim ve Bilişim Güvenliği Hizmetleri A.Ş has been completed. On-site audit of Elektronik Bilgi Güvenliği A.Ş. has carried out and the findings of audit were answered by the ECSP. Completion of the audit report is underway. 94 10.4. Inspection of GSM QoS The Inspections of GSM QoS have been done within the scope of “Communiqué on the Determination and Measurement of the Criteria Regarding Quality of Service Obligations of GSM Mobile Operators” put on practice after it was published at the 15.12.2005 dated and 26024 numbered Official Gazzette. According to the regulation, the call blockage rate and the call failure rate of the networks have been reported to ICTA on three-month term based by GSM operators. These declarations have been questioned, confirmed and inspected by the measurements done both in the area and the operators control centers (NCC). In this context, inspection of GSM QoS and GSM Coverage was done by means of taken data from NCC centers in 2011. 10.5. National Monitoring Activities Since it is compulsory to ensure the sustainability and quality of communication at frequencies for which permission for and authority of use are granted by the Authority by making frequency assignment; It is necessary to monitor the spectrum consistently so as to take necessary precautions that will ensure on-spot determination and elimination of the factors (which occur due to various reasons) such as those preventing the continuous availability of propagation media or undermining the quality of communication or negatively influencing the life, property and national security as well as illegal broadcasts. National Monitoring System (NMS) was established in Turkey for spectrum monitoring. In 2011 the works given below were accomplished by means of NMS. Common works between the Authority and General Directorate of State Airports Authority have been carried out in order to rapidly determine and solve the complications occured in the aeronautical bands, to gradually minimize those complications and to revise the related measures especially in Ankara and İstanbul airports. Within this context mobile equipments were located near those airports for the aim of monitoring the aeronautical bands and mentioned electromagnetic interferences were solved. 10.6. Electromagnetic Radiation Measurements Within the scope of electromagnetic field measurement, the measurement activities had been done in 11 provinces which started in 2008, in 2009 with 15 provinces and in 2010 with 40 provinces as a result of joint efforts. In 2011 the measurement activities in İstanbul had been done and electromagnetic field measurement activities had been completed totally in 67 provinces and then a web interface had been created to present the result of the measurement. In this web interface had been supplied the ability of inquiring of the electromagnetic field values selected by province, town, district and street. In these 67 provinces which measurement activities had been completed the electromagnetic field values had been observed below the determined limit values for the environment. However, in some places close to the limits, the sources of these values were determined with detailed studies. Besides this, in the permitted values per devices were not observed any prohibitions for limit values. 95 10.7. Safety Cerfificate and the Implementations for the Certificate of Measurement Authorization The Regulation on the Issuance of Safety Certificate for the electronic communication devices published in the Official Gazettee dated 16.05.2009 and numbered 27230 was suspended according to the resolution of the Plenary Session of Administrative Law Divisions of the Council of State. The Regulation on the determination, control and supervision of the exposure limit values of electromagnetic field strength from the electronic communication devices according to the international standards was prepared and it has been put into effect publishing in the Official Gazettee dated 21.4.2011 and numbered 27912, informing our Authority on the aforementioned resolution in the result of the required studies for solving the regulation gap on the installation and operation of the base stations. In the context of this Regulation, the implementation of the Safety Certificate on the limit values for the electromagnetic field strength for the electronic communication equipment in the range of 10 kHz – 60 GHz has been done. The Measurement Authorization Certificate is issued to the companies having the required conditions in order to make measurements of the related devices. The Measurement Authorization Certificate were issued to 25 companies in 2011. According to the article of the Regulation, that’s, “Measurements are made by the persons having the Measurement Authorization Certificate. The qualifications which the persons are required to have and the required conditions in order to have the Measurement Authorization Certificate” are regulated in the Communique to be prepared by the Authority, the Communique prepared for issuing the Certificate to the responsible person for the measurement in the companies having the Measurement Authorization Certificate and in order to make more correctly measurements was put into effect publishing in the Official Gazettee dated 30.12.2011 and numbered 28158. 10.8. Market Surveillance and Inspections Activities The Market Surveillance and Inspections Activities has being done the basis of The Law of numbered 4703, Electronic Communications Law No. 5809, Regulation On Procedures and Principles For Market Surveillance and Inspection of Radiocommunication and Telecommunication Terminal Equipment dated 19 October 2007 and numbered 26675. These activities done with 82 inspectors whom belongs to centrals and 7 regions by means of “ The Procedures and Principles to Authorizate Inspectors for Market Surveillance and Inspections” which decision of Authority dated 18/04/2007 and numbered 2007/DK-13/206. In this context, 777 equipments of total 494 firms have been inspected across the country in 2011 due to random inspections (501), Inspection On Complaints And Denouncements (7), Scheduled Inspection (269). The equipments distribution is composed of 564 GSM, 72 PSTN, 71 DECT PHONE, and the other 36 (Gps, Radio Modem, Pmr, Radio) and licensed equipments ( Navy Radar, Radio Equipments). Such Equipments that was drawed up 63 Contradiction Record, 1 Discredit Doubt Record, 8 Discredit Detection Record. In 2011, 76 samples are taken for testing. 96 By reason of inspections that has applied 388,892.00 TL administrative fine to the 16 telecommunications firms in 2011. The Information of Market Surveillance information 2011 is given in Table 12 and Table 13 Table 12: Distribution of Inspections made in 2011 by Type of Inspection. Table 13: Market Surveillance and Equipments According to Product Grouping, 2011 97 11. IPv6 Transition Works At the beginning of 2011 free pool of available IPv4 addresses managed by IANA was fully depleted. E-Transformation Turkey Executive Board's Decision No.27 dated 15.07.2009 gives ICTA the missions of raising awareness, preparing a road map and to develop measures and policy proposals regarding the transition to IPv6 with collaboration of all related stakeholders. 11.1. National IPv6 Infrastructure Design and Transition Project “National IPv6 Infrastructure Design and Transition Project”, executed by ICTA, ULAKBİM (Turkish Academic Network and Information Centre), Gazi University and Çanakkale Onsekiz Mart University, is a project that is approved within the Program of Supporting the R&D Projects of Public Entities by TUBITAK (The Scientific and Technological Research Council of Turkey). After a two-year period, this project was completed in February 2011 and very important outcomes are gained as follows; n An IPv6 test bed where IPv6-based applications could be developed and tested by related parties like ISPs, R&D bodies, academia, etc. n IPv6-enabled open source videoconference software n A honeypot software used for researching security issues (attacks and weaknesses) related to IPv6 n An “IPv6 Information Production and Management System” containing a decision support system that could be used to determine the most convenient method of IPv6 transition. These outcomes are published in the web site of the project which is www.ipv6.net.tr. Besides, “Minimum Security Measures for IPv6 Transition” and “IPv6 Handbook” is published in the web site of ICTA. 11.2. Prime Ministry Circular In June 2010, a report involving recommendations regarding IPv6 transition in Turkey by “IPv6 Regulations and Applications Working Group” which was composed of experts from Ministry of Transportation, Maritime Affairs and Communications and ICTA was prepared. One of these recommendations was about publishing a prime ministry circular which would set specific timeframes for IPv6 adoption in governmental agencies. A draft circular was produced by ICTA and ULAKBİM. Then this draft was approved and published as the Prime Ministry Circular with a “Plan for Public Sector's Transition to IPv6” in the Official Gazette dated 12.08.2010 and numbered 27779. According to this circular; governmental agencies have to meet some predefined levels of IPv6 support. The circular defines three phases of transition; in the first phase agencies must do an inventory analysis and must have an IPv6 address and IPv6 connection until the end of 98 August 2012 at latest. In the second phase agencies should make at least one of their Internet services IPv6-compatible until the end of year 2012 and in the third phase agencies should make their all Internet services open to public IPv6-compatible until the end of August 2013. In 2011, all governmental agencies are assumed to have completed their inventory analysis. ULAKBIM has given IPv6 related trainings to 385 officers from 115 public agencies. ICTA, formed an IPv6transition platform to share knowledge and to monitor the results of the circular. 11.3. Awareness Raising Works Within the framework of awareness raising efforts with regards to IPv6 transition, an “IPv6 Workshop” was organized in May 2010 in ISC Turkey Conference in Ankara. Moreover, with the stakeholders of “National IPv6 Infrastructure Design and Transition Project” an “IPv6 Conference” was held on January 12-13 2011, in Ankara. A second conference is also planned to be organized at the beginning of 2012. Through remote participation in the workshop titled “Understanding IPv6 Deployment and Transition” in IGF (Internet Governance Forum), sixth of which was held in Nairobi, Kenya, a presentation about the IPv6 transition works in Turkey was made. This contribution could be accessed via the web site of IGF (www.intgovforum.org ). 99 12. International Relations ICTA maintained close ties with European Union (EU) and all the international organizations including International Telecommunication Union (ITU), European Conference of Postal and Telecommunications Administrations (CEPT), European Telecommunications Standards Institute (ETSI), which are international and regional telecommunication organizations, in 2011, 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 regulation the sector in more efficient and international standards as well as representation of our country in international organizations as a member administration. Besides, Information Technologies and Communications Authority implemented bilateral and multilateral cooperation projects in the field of telecommunications with countries which have historical and geographical similarities with Turkey. In addition, historically and geographically close to Turkey and the countries in the field of electronic communications, has set up bilateral and multilateral co-operation projects, and regulatory institutions in different countries in this context, especially for beginners and professionals working in the field of telecommunications and spectrum arrangements organized training seminars. 12.1 The Relations with the European Union The relations with the European Union (EU) in the related areas continued in 2011in a multidimensional and intensive way 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 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 Ankara on February 9, 2010. 100 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. Another important activity under EU relations is contributions to the documents which form the framework of relations between Turkey and EU. ICTA continued to study on priority work pertaining to ICTA in 2008 National Programme. Furthermore, ICTA made the necessary contributions to the Progress Report published by European Commission in 2011. The activities with regard to pre-accession financial and technical assistance continued in 2011 in line with the objective of ICTA on utilizing various funds and programmes of the Union in the fields which ICTA is responsible for. Within the context of 2011 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 project proposals for “Wholesale Line Rental”, “Next Generation Access” and “Effective Competition in Mobile Markets with a Focus to Broadband Services” have been approved by the European Commission and in this context, three study visits have been realized to Denmark and Italy. Within the framework of 2011 programming of the first component of Instrument for Pre-Accession (IPA-1) Assistance, ICTA's proposal for “Technical Assistance for Achieving the Information Society and Stimulating High-Speed Broadband Services to the Benefit of Consumers” have been approved by the Commission and this project is envisaged to be realized in forthcoming years. Moreover, in 2011, ICTA contributed to the project of “Supply of Services in Monitoring Regulatory and Market Developments for Electronic Communications and Information Society Services in Enlargement Countries” financed by the European Commission aiming to provide continuous monitoring of developments in the enlargement countries between 2011-2013 and participated in the Monitoring Forum held on 26-27 September, 2011 in Tirana. 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. ICTA also hosted the “EMERG Workshop on Next Generation Network Rollout and Broadband Stimulation: Regulatory Policy and Practice” in 2011. 12.2 Relations with International Telecommunications Organizations Turkey as a member of the Council of the ITU participated in the Council meetings held in Geneva on 11- 21 October 2011. During the Council meeting; ITU’s 2012-2013 budget and strategic plans of the General Secretariat and the three sectors were approved. In addition, ITU’s annual report was examined. Dates and places of the WCIT-12, WTSA-12 and PP-14 were decided. Turkey was the Vice-Chair of the Council 2011 and will chair the Council at Council 2012 session. 101 ICTA participated in the Council meeting of the European Communication Office (ECO) took place on 11-12 May 2011 and 22-23 November 2011. During those meetings, the reduction of Turkey’s contribution to the ECO budget from 10 units to 5 unit was evaluated and Council initiated the procedure in accordance with the Article 20 of the ECO Convention for amending Annex A of the Convention. ICTA also participated in CEPT’s Com-ITU meeting in Copenhagen between 29th November and 2th December 2011. Turkey, as the Vice-Chair of the CWG-CS (Council Working Group on a stable Constitution)), submitted the draft Proposal during the Com-ITU meeting. ICTA has also hosted some CEPT meetings: the 10th meeting of the CEPT/ECC/WGFM-PT46 on 29-31 March 2011 and Com-ITU meeting on 22-23 March 2011 in Istanbul. 12.2.1. World Telecommunication and Information Society Day World Telecommunication and Information Society Day (WTISD) has been celebrated annually on 17 May, marking the founding of ITU and the signing of the first International Telegraph Convention in 1865.The purpose of WTISD is to help raise awareness of the possibilities that the use of the Internet and other information and communication technologies (ICT).WTISD highlights the theme for 2011 “Better life in rural communities with ICTs” which was adopted by ITU Council in 2009.On the occasion of WTISD 2011, an event organized around the theme of “Better life in rural communities with ICTs” jointly by the Association of Telecommunications Businessmen(TÜTED) in İzmir on 17th May, 2011. This event gave an opportunity for mobile network operators, Regulators and other partners in the private sector to focus on reducing the digital divide through an appropriate use of ICTs linked to the economic and social development. 12.2.2. Seminars on International Electronic Communications Regulations ICTA has 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 useful 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 sector in abovementioned countries. These seminars include telecommunication regulations, spectrum regulations and information technologies regulations. The first seminar on telecommunication regulations has been held in İstanbul Regional Office of ICTA during 13-17 June 2011. 33 participants from 17 countries have discussed issues such as mobile-fixed interconnection, local loop unbundling, market analysis and competition, numbering, number portability, rights of way, consumer rights, privacy of personal data and quality of service. The second seminar on spectrum regulations has been held in İstanbul Regional Office of ICTA during 21-24 November 2011. 27 participants from 15 countries have discussed issues such as terrestrial, satellite, maritime and aeronautical systems, spectrum trading within the framework 102 of flexible spectrum management, spectrum pricing, quality of service in mobile communication systems, market surveillance, electromagnetic field exposure and spectrum monitoring. ICTA envisages continuing to hold training seminars particularly on information technologies regulations in 2012. 12.3 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 2011 and in this context, the following developments were made. Dr. Imad HOBALLAH, Acting Chairman of Telecommunications Regulatory Authority (TRA) of Lebanon, paid a visit to Turkey on 2-4 February 2011. In order to establish bilateral cooperation, a Memorandum of Understanding including exchange of information, experience and experts was signed by the Chairman of TRA and Chairman of the Board of ICTA in Ankara on 3 February 2011. Within the scope of existing cooperation between Turkey and Syria, a delegation headed by Dr. Muhammad ALJALALI, Deputy Minister of Communications and Technology of Syria, paid a visit to Turkey on 23-24 February 2011. During the visit, a Memorandum of Understanding aiming at exchanging information, experience and experts between the ICTA and the Ministry of Communications and Technology of Syria was signed by Dr. T. Ayhan BEYDOĞAN, Vice Chairman of the Board of the ICTA and Dr. Muhammad ALJALALI on 24 February of 2011. Upon the invitation of Agency for Electronic Communications (AEC) of Macedonia, a delegation composed of Dr. Tayfun ACARER, Chairman of the Board, Dr. İhsan KULALI, Member of the Board and Dr. Ahmet ÇAVUŞOĞLU, Head of International Relations Department visited Macedonia on 20-22 April 2011 within the scope of activities of initiation of bilateral cooperation between ICTA and AEC. During the visit, a Memorandum of Understanding aiming at development of cooperation through exchanging information, experience and expert was signed by Dr. Tayfun ACARER, Chairman of the Board and Mr. Robert ORDANOSKI, Director of AEC in Skopje on 20 April of 2011. A delegation composed of Dr. Tayfun ACARER, Chairman of the Board, Mr. Galip ZEREY, Member of the Board and Dr. Ahmet ÇAVUŞOĞLU, Head of International Relations Department paid an official to Saudi Arabia on 25-28 April 2011. Opportunities for mutual cooperation in both countries were discussed with the officials from Communication and Information Technology Commission during the visit. 103 Within the scope of bilateral cooperation activities of ICTA, a delegation composed of Dr. Tayfun ACARER, Chairman of the Board, Mr. Musa ŞAHİN, Member of the Board and Dr. Ahmet ÇAVUŞOĞLU, Head of International Relations Department visited Montenegro on 5-7 July 2011. During the visit, a Memorandum of Understanding including exchange of information, experience and experts between two institutions was signed by Dr. Tayfun ACARER, Chairman of Board and Mr. Zoran SEKULIC, Executive Director of Agency for Electronic Communications and Postal Services of Montenegro in Podgorica on 6 July 2011. A Memorandum of Understanding (MoU between ICTA and the Communications Regulatory Authority (CRA) of Iran was signed on 29 January 2009 in order to establish bilateral cooperation. Subsequently, a joint working group was established to implement MoU and its first meeting was held in Tehran on 25-27 May 2009. Second meeting of the working group was held in Ankara on 26-28 December 2011 and an Iranian delegation composed of 5 officials was participated in the meeting. During the Iranian delegation’s visit, ICTA experts made presentations on various issues and also information and views on the topics of mutual interest were exchanged. 12.4 Black Sea and Caspian Regulatory Conference The 6th Black Sea and Caspian Regulatory Conference was organized in Istanbul on 2-3 June 2011 by the ICTA. The main theme of the conference was “Transformation to Digital Cities: Fixed (Fibre)-Mobile Broadband Experiences, Trends”. The conference to which more than 250 participants attended including representatives of 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. 104 13. Technologic, Economic, Regulatory and Market Reports Publishing and sharing of the reports clarifying the status of the market and explaining new technologies and services is of great importance for the proper functioning of the decisionmaking process of regulators, and for awareness of consumers and operators about the decisions and the justifications of regulations and about decisions of the regulatory body, and for having knowledge how these regulations affect the sector. As a general rule, more information should be released due to increasing competition in markets where liberalizations occurred. In this context, it is vital for the authority to prepare reports that include market information based on reliable data in order to inform all relevant parties in a detailed manner. With these reports it will be possible; to monitor the development of new market players closely, to inform the public about the investments to the telecommunications sector after the liberalization period and new products and services resulting in this direction, and to monitor the tendency of tariffs and the amount of traffic which are the specific indicators of the development of competition. In addition, every day a new product and service type is standing out parallel to information and communications technology developments. It is very important to inform and guide the existing operators in the sector or the firms willing to invest to the sector about the new services and technologies. On this purpose, parallel to the developments in the world, reports including economic, technological and regulatory issues are prepared by the Authority and published on its website. Reports published in 2010, and their brief content is given below. 13.1. Usage of 800 MHz Band in Mobile Communication Services In this report; while attention on efforts to establish a European Union (EU) single market, in terms of creation of the European electronic communications market, in order to increase awareness of all the parties of the sector, the allocation for non-broadcasting services and the importance of spectrum amount which is the 470-862 MHz band is freed up by the switch over from analogue broadcasting to digital broadcasting examined. As a result of the introduction of digital technologies in terrestrial television broadcasting, the release an important amount of 470-862 MHz band came up. The digital dividend is the frequency bands freed up as a resullt of the switchover. Effective and efficient use of frequencies in 470-862 MHz band by means of digital broadcasting technologies, 790-862 MHz band shall be released in the first place are being allocated to services other than broadcasting services. 790-862 MHz band be allocated to the various service options; wireless broadband applications, the allocation of additional bandwidth for mobile communication systems, broadcasting ancillary services, license-free low-power applications, public safety/emergency services. 105 Technological advances, convergence and as a result of popular demand for access to information are increasing demand for frequency spectrum. In spectrum management as well as technical parameters, economic, political, cultural, health and social parameters must be taken into account. In this context; in the use of spectrum the needs of stakeholders such as end users, device manufacturers, service providers, commercial and public service providers are necessary to consider. Therefore, spectrum management is necessary to form a balanced structure to the needs of all of these stakeholders. In terms of Türkiye, in case of a decision related the allocation of 790-862 MHz band for mobile communication systems taken and implemented immediately without delay, up to date 2015 analogue broadcasts ended, with no provision of digital television broadcasting in 790-862 MHz band and no economic cost for investment expenditure and for releasing compensation for this band and sectoral investments due to be made in accordance with the policy decisions will be significant. As the whole world, the increasing demand for mobile communications in Türkiye and taking into account international regulations of the frequency spectrum, frequency harmonization with EU member states and in parallel creation of regulations to be applied will benefit for national interests. In this context, in the face of the allocation efforts of 790-862 MHz band especially for mobile communication services in the most practices of European countries, in case of a different application of Türkiye, it is certain to experience serious difficulties such as EU criteria and the frequency mismatch with EC, device and standard mismatch problems. For the effective and efficient use of the frequency spectrum which is limited natural resource and regarding with the Electronic Communications Act No. 5809, in parallel with the legal responsibility for strategic decisions of Ministry of Transport, Maritime Affairs and Communications; n The allocation of UHF 470-790 MHz (TV Channels 21-60) by BTK for digital terrestrial TV frequency plan, with a reasonable and limited period to RTÜK, n Frequency tender for correction of actual situation made by RTÜK, release the frequencies up to switch over date by the regulating of digital terrestrial TV broadcasting in the UHF 790862 MHz band and the allocations for digital bradcasting starting from the 21st channel with allowance of additional digital dividend frequencies modification, n Activities related to the transition to digital broadcasting and digital dividend with a compatible coordination among all stakeholders, on the road to information society, these are indispensable in terms of the priorities of Türkiye's national interests. 13.2. The Role of Regulatory Authorities on Digital Broadcasting As a result of the demand for information, the mass media gained prominence known annunciation, education, socialization, persuasion, public awareness, entertaining and setting up the audit 106 and criticism on behalf of society on authorities on the most important functions of society. In other words, mass media emerge as an indispensable guarantee of freedom of information. As a requirement of democracy the mass media expected to be freed was the subject of ongoing discussion which the boundaries and how to identify of this freedom and whether to exempt any audit of mass media. Nowadays, positive or negative effects on society or the individual of mass media spreading rapidly and gaining importance also realized rapidly in the same way. Misinformation, forwarding political, economic and cultural purposes, prevent of polyphony by creating a monopoly, out of social life, creating consumer culture, consumption forwarding by means of series, movies and so on, by means of publications that contain violence and sexuality is harmed of children and young people's mental and physical development, damage in national and spiritual values such as family, education and religion and culture some of the negative effects of mass media. Regulation and supervision of mass media are inevitable for all this negativity and to prevent possible damages. In this study, focus on digital radio and television (TV) broadcasting instead of traditional analog broadcasting. Besides those listed above for radio and TV broadcasting, with using broadcasting frequencies of frequency spectrum which was public property and limited resource and also obligation of public interest requires a specific regulation and supervision are discussed. After the discovery of radio waves in 1860 by Maxwell, radio waves used for communication in 1895 by Marconi for the first time. Radio waves has been one of the most important discoveries of the 20th century with the start of radio broadcasting in 1925 and start of television broadcasting in 1953. By means of information, entertainment or cultural sharing, radio and TV broadcasting changed border and distance concepts According to the ITU data, 71% of livings in the world which are approximately 6.9 billion people are watching TV at home. 77% of the total 1.7 billion residences where people live in have at least one TV set. In other words, where the TV set almost every household in our country and all over the world is most of the tool popular and widespread communication, information and entertainment of people. While the rate and duration of daily TV watching around the world increasing, similarly the numbers of broadcast channels and the numbers of publishers also increasing. As can be seen in the expression of numbers, digital (radio/TV) broadcasting an essential importance of modern man has a special place in his life. Today, knowledge is meant everything, telecommunications, broadcasting and information technologies in terms of both technology and service together in the form of triple-play offering convergence are inextricably intertwined. Field of radio and television around the world is regulated and supervised specific laws of communication field and regulatory authorities created in accordance with these laws. Almost all of these regulatory boards are being established in a similar way and are equipped with similar tasks and authorities. In Turkey RTÜK frequently criticized as anti-democratic and censor board and the same way as a mission-like bodies is considered the cradle of democracy in western countries are also available. The presence of these regulatory boards within the framework of laws regulating and monitoring of broadcasting field 107 required to achieve the balance between public interests and market conditions in terms of efficient use of limited resources, democratic reasons and freedom of communication. Because of tender for the allocation of frequencies is still not made commercial broadcasting actually began in 1990 in Turkey which has started in 1993 as a legal base, today, all private radio and television channels broadcasting pirate broadcasts legally. In addition, as a result of free use of the frequencies which are limited resources and public property, the detriment of the public is caused. Since terrestrial frequency allocations have not been realized since the adoption of the law No. 3984, configuration and regulation of broadcasting sector is the basic cause of the difficulties encountered in the primary in Turkey today. Therefore, the terrestrial frequency allocation is one of the problems as soon as possible to be solved. Terrestrial broadcasting licenses and tender for digital TV multiplex capacity are granted at the latest within two years In Law No. 6112. Following the allocation of digital frequency at the end of up to two year period, analogue broadcasts will end across the country. Also, our country will be completely digital broadcasting by 2015 set by the ITU. Broadcasting Law No. 6112 where place of Broadcasting Law No. 3984 came into force in accordance with the EU Audiovisual Media Services Directive in 2011. RTÜK makes frequency plans and allocates them to the broadcasting sector according to Law No. 5809 regulating the broadcasting sector in terms of electronic communication within the framework of the national frequency plan allocated frequency bands to the RTÜK. Application calendar according to Law No. 6112 shall be prepared within one year from the date of publication of the law. As a result, from frequency limited source allocation to the principles which broadcasters must comply with of broadcast and from notion of public service to participate in the democratic process regulatory boards which are the broad effects of many aspects takes care of the public service and the benefit. There is an important mission. Activities and arrangements to do this mission again, giving birth in a public loss is important to be accurate and timely decisions. 13.3. Technological Regulations Dedicated to Disabled Users Innovations and changes in technology especially in ICT field, devoted to meet needs of living and efforts to control, to give shape or to change the human environment create possibilities which were not available in the past and clear away many obstacles. These developments present significant opportunities in order to remove barriers and enhance the living quality and social integration of disabled users. In spite of these opportunities disabled individuals may come across various barriers. Usage of many advanced technologies has problems for both healthy and disabled people. This situation signifies isolation of disabled people from technological devices. Disabled people may have difficulties to use existing communication services in terms of accessing to information, arranging their lives, maintaining social relations and even calling emergency services in their work environments. 108 In this report, after making definition of disability, international studies especially in ICT field are researched. Furthermore, Turkey case is discussed in terms of regional distribution of disabled people, educational level of general and disabled population, disabled population in terms of gender, issues related to use of ICT by disabled people. Within this study, it is emphasised that experts on education and ICT should work in collaboration so as to make use of technologies widespread. Cost calculation of ICT products and services must be fulfilled through taking into account the fact that majority of disabled people are unemployed and their usage level is low. ICT products and services should conveniently be designed so that disabled users may benefit as well. In addition to the matters mentioned above, some solution proposals are given place in the appendix of the report. In this context, since ICT has increasingly become more complex and rich, user friendliness must be ensured. The best way for this is to take needs of users into consideration at the design level of products and services. “Design for all” or “Universal design” as called in the US means designing products so that anyone can use it without performing specific design. The aim of cooperation between human factors at the design stage is to amplify practicality. Different kinds of disability, barriers of and remedies for disabled people and some developments regarding disabled people were explained within the scope of this study, Accessing to and using ICT technologies provide independence, mobility and quality of living to disabled people. Working opportunities can also be seized thanks to these technologies. In the process of transition to “information society” which aims to increase implications of science and technology to economic and social development has a very significant role on “social integration”. In recent years, efforts to prepare an environment without barriers and especially to remove barriers of disabled individuals’ access to information were intensified. New technologies are produced through attaining and processing information. Produced technological information increase the living quality of people on one side and this also facilitates an individual’s making business alone. In order to achieve these, participation of new organisations are required. Use of ICT in general and professional education of disabled people is new in Turkey whereas it is advanced and widespread in Europe. Though its use in general education systems is widespread, beginning to use ICT in personal education is relatively new. A great number of research and studies show that using ICT in education of disabled individuals may increase productivity and effectiveness. Increasing examples of using ICT in education of disabled people especially in Europe set out useful results. Despite financial difficulties, ICT should take its place in education of disabled people in Turkish Educational System in a short time. Thus it is ensured that any student is not discarded how different his/her learning type is. In other words, education opportunity to disabled people should be provided according to their capacity and qualifications because ICT supported education will reopen shut doors for mentally disabled, orthopaedic and other disabled people in their daily lives. In this context, one of the paths to ensure participation of all people in information society is designing ICT products, services and applications that can be used by all. Design of ICT products and services that can be used by all does not only contribute to participation of disabled people 109 in daily life, but also contribute to operation of industry and expansion of the relevant market. Design for all will encourage producers and service providers to develop technologies available for everyone. It is impossible for disabled individuals not to come across problems in terms of access to and use of information. It looks many designs will be developed and new solutions will be found and problems will be removed in the future in this field. The aim of “design for all” is to create a society thinking that no one, including disabled people, would be discarded from information based process. The idea of all individuals’ participation in the society should particularly focus on raising consciousness and sensibility relating to systems, services and plans that will be offered to disabled people. “Social integration” of disabled people is responsibility of all contemporary and social states. The aim of creating designs that takes into consideration of participation of disabled people in the society is to benefit from usage, access and opportunities provided by technology. Usage and access issues come out along with the development of technologies enabling universality and access. The main problem to use of and access to technologies is that disabled people do not have sufficient income since majority of them is unemployed. Calculation of costs through taking disabled people’s income level into consideration is a step towards overcoming an important obstacle. Proposals for Turkey set out at the final unit of the report are given below. Resolutions adopted in the 3rd Council organised by Prime Ministry Administration for Disabled People should be put into action: “Research and development works related to ICT and other supportive technologies used by disabled people groups should be supported through incorporating universities, State Planning Organisation (DPT), The Scientific and Technological Research Council of Turkey (TÜBİTAK), non-governmental organisations and private sector, technology should be updated and permanency should be ensured. Staff concerning supportive technologies for disabled people should be trained in relevant departments of educational institutions and classes about technology usage should be included into the curriculum of Ministry of National Education. Electronic libraries dedicated to visually and hearing-impaired people should be formed by means of using suitable technologies by relevant specialists and these libraries should be universalised through centralisation. Disabled individuals should be rendered to computer-literate and be guided to professions in ICT field.” In particular, improving effect of using advanced technology products in education for disadvantaged groups (girls, people excluded from school, the poor, disabled people, people living in less developed or rural areas etc.) should be treated as an evaluation criterion and role of this effect on alleviation of existing inequalities should be underscored. Primarily, cooperation between personal education and ICT specialists is evaluated very significant so that usage of supportive technologies in education of disabled children becomes widespread. In addition to this, researches relating to supportive technologies used by disabled people should be planned and results of these researches should be shared with different profession groups 110 in scientific congresses. These researches relating to supportive technologies will be very useful in order to provide a basis for true and effective implementations in Turkey. At the same time, equipping personal tutors and field expert candidates in graduate and post-graduate educational programmes with functional knowledge about using supportive technologies and computer is evaluated quite important. Using ICT changes both social interactivity and commercial interaction. People desiring to benefit from opportunities that ICT provides should not be discarded due to their age or disability. ICT products should be designed so that disabled people can also have access to them. Possession of ICT products and services require cost calculation that takes disabled people into consideration. The fact that majority of disabled individuals is unemployed and their usage level is low should be borne in mind. Tax and payment incentives may be brought to disabled people using new smart phones that provide convenience for the speech and visually impaired. Text messaging may be free of charge for speech impaired people. State subsidies are significant for decreasing the price of ICT product and services. 13.4. Net Neutrality Although there is no universal formal definition of net neutrality, it may be described as rules of accessing internet by internet content providers and internet service providers. In other words, operators providing internet access to internet content providers are obliged to nondiscrimination at ex-ante basis. Thus, backbone operators are prevented from some practices such as blocking of certain content, degradation of quality, providing priority for content supplied by their subsidiary content company. The proponents of net neutrality advocate that there should not any discrimination at internet in order to preserve the innovativeness. They argue that without existence of net neutrality principle, backbone operators have a high incentive to discriminate. On the other hand, opponents of net neutrality argue that if net neutrality principle exists, then investment on network will decrease and the existing network will be used inefficiently. Furthermore, they claim that net neutrality will decline innovativeness by preventing the development of real time internet applications. Theoretically, backbone operator has an incentive to discriminate between content providers. For example, an internet access provider as well as supplying content might degrade the internet access of a rival content firm. The opponents of net neutrality argue that although such a behavior is a violation of competition laws, implementation of net neutrality principle takes too much time. Net neutrality is discussed for quite long time in USA. That issue is also on agenda in EU. Net neutrality discussion in USA is focused on pricing of internet access by internet access providers and traffic management. In EU, the discussion is focused more on mandatory network sharing and how the neutrality will be achieved. EU regulation framework addresses the problems between internet access providers and internet content providers. The basic question is whether internet access providers have an incentive to 111 conduct price discrimination against internet content providers and if there exists an incentive then whether they have an ability to conduct price discrimination or not. If answers of those questions are yes, then policy makers should prevent these actions that are harmful for consumers’ welfare. Also, the second question is whether available rules and regulations are adequate to deal with such an uncompetitive practice. This report address what net neutrality is, how it has developed and why it is important. Also open internet policy and content discrimination are discussed. In this framework, experiences of USA and EU are considered. Then views of operators on net neutrality and what net neutrality means for consumers are also discussed. The core issue of net neutrality debate is possible discrimination of internet access providers on internet content providers and individual users. In particular, TCP/IP protocol has been developed such that prioritization is not possible between different data packets or different contents. However, new devices such as a new generation of routers were developed in early 2000s that are capable of content discrimination. With this technical progress, controlling and blocking of data packets have become possible. The immediate implication is that network operators can conduct price discrimination on the traffic at their network in order to maximize their profits. In other words, network operators have got power to implement different prices for the nature of content or data. Currently, network providers charge individual consumers for internet access while there is no any charge for content providers. The rapid diffusion of broadband access and emergence of movie and music applications increase bandwidth demand. In addition to these, discrimination of contents has become technically feasible due to technical progress. Therefore, network providers claim that content providers use their network or their property at free. Indeed, network providers want to apply different prices for various kinds of content. For instance, they can charge higher prices for real time applications. In Denmark, a file sharing site and an mp3 downloading site have been closed by court decision. In France, access for a video sharing site, namely Dailymotion, has been restricted. In Asian countries, there is more will to regulate the internet. Access to VoIP service providers is restricted in Korea. Likewise, in Japan unacceptable content is been subject to restriction. While there are some operators with significant market power in Europe, there is no any serious case that may require ex-ante or ex-post intervention at internet services markets. Therefore, the situation and potential risks are not very clear. The discussion of net neutrality includes abuse of dominant position, discrimination; transparency, unbundling, obligation of access provision; service quality and consumers interest issues. In order to deal with possible problems related with net neutrality in Turkey, the secondary legislation such as Consumer Rights Ordinance and Access and Interconnection Ordinance based on Electronic Communications Law No. 5809 might be adequate. According to legal regulations, ICTA has a right to block access internet for certain crimes directly and depending on court decisions for other cases. Operators don’t have a right to block any internet sites. 112 There aren’t many cases validating net neutrality concerns. Up to now, the debate on net neutrality is basically analyzing theoretical possibilities. Therefore, it should be reasonable to avoid comprehensive ex-ante regulations in favor of net neutrality. Like EU approach to the issue, it would be wise to see and wait for some time in Turkey instead of taking radical actions. Nevertheless, existing regulations on discrimination and abuse of dominant position should be implemented and the markets should be followed closely. Naturally, if it is necessary then some appropriate measures may be used. In addition to these, transparency and quality of service regulations are also very important. Transparency requirement is believed to be very effective for net neutrality such that consumers should know the service details and whether it includes traffic management or not. It should be note that traffic management may target to increase service quality for particularly IPTV and mobile tv services. Thus, it is not necessarily anti-competitive practice. In the case of file sharing, the problem seems to be more related with intellectual property rights. To conclude, current debate on net neutrality is rather based on theoretical considerations for future concerns. Policy makers should follow actors and markets closely and in the short term wait and see may be right response to address net neutrality concerns. Internet has developed astonishingly without massive policy interventions so far. 13.5. Regulation of Postal Sector Communication is accepted as one of the key human rights and postal services is one of the oldest and leading ways of communication. Since the set up of first post office called “Royal Mail” in the UK in 1657 under the Postage Act, postal services is considered as a public service provided by public monopolies and continued by this approach until the last three or four decades. The main reason lying under the provision of postal services by public monopolies is to ensure postal services with affordable prices for all people. Moreover, postal services could be subsidized for ensuring provision of universal postal services and security of postal networks by governments. Since 1960s and 1970s, some part of postal services started to be provided by alternative suppliers. However, the practices such as ending the monopoly rights and privitisation in telecommunications and energy sectors to create a competitive environment with lower prices and higher service quality have also started to be considered for postal sector. In 1990s, the policies such as privatization and liberalization of postal services started to be implemented throughout the world. This kind of liberalization practices along with the social and economical reasons is one of the leading factors serving the idea of removing the borders in Unions such as European Union for both member countries and markets. Together with these factors, developing communication technologies and globalization trend have an important role in liberalization of postal services. 113 In this context, this reports deals with the definition, context, and the renewal of postal services, the objectives of reform efforts and the main reasons lying under the liberalization practices. Then, particularly the practices in the EU and other countries are examined in terms of liberalization and regulation of postal services. Afterwards, by analyzing the country practices and the current situation in Turkish postal services market, some suggestions are introduced for the regulation of postal services in Turkey. Rapid developments in information and communication technologies and widespread use of these technologies decreased the demand of postal services substantially. Mail and greeting cards, formerly important parts of daily life, are substituted by e-mails and similar methods that became center of our lives with the effect of electronic communications. However, it is a low possibility waning demand of postal services completely and transferring of printed published material via postal services. Although there are rapid developments in the area of electronic communication and electronic signature, it will not be wrong to say there is time to transition to electronic mail from printed copies such as legal processes. On the other hand, rapid developments in the information and communication technologies also contribute to widespread use of e-trade applications and increase the traffic of parcels and packages. In other words, while electronic communications services substitute traditional postal services, it also increases the demand for parcel services. Turkey also follows a similar trend in postal services sector as a result of these developments. One of the fundamental organizations of Turkey, as a public monopoly PTT has witnessed a decrease in its postage volume and started to operate in the market in 1990s, private express delivery and cargo companies gained momentum in the recent years. This backward transition period can be explained by the stagnancy policy peculiar to the public institutions and on the other side the dynamic structures of private companies in a competitive environment. However, in the recent years PTT has recovered its losses with a more dynamic and entrepreneur strategy. It is also possible to say that PTT used its current delivery network for other services such as PTT bank for optimal use to increase revenues. Nevertheless, postal reform gained momentum in EU countries became an inevitable necessity for Turkish postal sector. In this context, at first step postal service incumbents should be disintegrated from the ministry and established as a legal corporation. However, postal incumbents generally deal with the problems of the past and struggle to restructure the costs; hence corporation efforts do not result with the new investments. On the other hand, while competitors focus on high profit services, postal incumbents losses its revenues and market shares by providing only traditional postal services. Since postal services have a vital role in communications, it is obvious that ensuring a competitive postal market by regulating quality, tariffs and universal service have great importance. 114 The objective of the EU postal policy is to accomplish the Single Market for postal services and ensure a high quality universal postal service as part of the Lisbon Agenda. It thus focuses on postal customers, both business and consumers. These objectives are pursued by opening up the sector to competition in a gradual and controlled way. The Commission monitors and ensures the correct implementation of the regulatory framework and, where appropriate, proposes changes to this framework in order to achieve the Community's postal policy objectives. In addition to the general rules of the EU regulatory framework, Member States prefer different methods for regulating the postal services market. This diversity also covers the responsible Ministry, regulatory body and its organization structure. While some countries prefer to establish a separate regulatory body for regulating the postal services (UK, Spain), some assess it in the context of current organizations powers (Germany, France, Belgium, Portugal, Netherlands, Ireland, Sweden), some countries carry out under the ministry (Italy) or some choose to regulate over the USO provider. No matter how it is regulated, Turkish postal market should be formed in a proper legal ground immediately. Legal regulations should cover the competitors and it is obvious that USO obligator PTT should be regulated in terms of quality and tariffs. At this point, a separate regulatory body or a unit under the Ministry or reviewing the powers, duties and organizations of a current regulatory body dealing with another sector such as ICTA are the options for policy makers. 13.6. Trends in Electronic Communications Sector in terms of Regulation and Technology and Suggestions for Turkey In this report, the recent trends in electronic communications sector have been investigated and the developments on fixed, mobile and broadband fields have been presented in terms of technology and regulations in order to guide Turkey. The electronic communications sector is developing and growing continuously in all periods. The positive improvements in the sector despite the global financial crisis have increased the critical importance of the sector in the economies of the countries. Emerging next generation access networks, running out of IPv4 addresses and seeking new regulatory approaches for countries to increase the level of competition are some of the important developments in the sector. The telecommunications industry has been successful in keeping itself alive in the crisis environment. Long term agreements, emerging bundled products and the acceptation of communications services as essential needs not depending on users’ preferences can be mentioned among the reasons for this sector to adapt the crisis conditions better. Notably, the increasing number of bundled services resulted in increase in consumer loyalty and prevented churn rates. The low churn rates provide benefits for operators in economic regression periods. It is expected that migration to the next generation networks that is one of the most important trends in the sector will exhibit its effects on the market structure on the following decade. Previous infrastructures (like PSTN and Cable networks) were generally deployed in monopoly 115 periods and their effects on competition were mostly not taken into consideration. The current challenge is whether the fiber networks more than one could compete with each other in cities and more importantly, deploying fiber network in rural areas is economic or not. It is also argued whether wireless access networks are more cost effective and if it is a competitive alternative or a complementary technology in the rural areas. Some stakeholders of the sector are currently not satisfied by the speed of network deployment. When the state intervention should be allowed to reach the political goals of promoting the private investment and increasing the alternatives for the costumers is another discussion subject. In such a case, detailed analysis is needed in order to ensure that public investments do not lower competition. Vertical separation of the telecommunications networks has been brought on the agenda by merging the next generation networks. Both structural and functional separations are presently used in some OECD countries. Another substantial development in the sector is seen in the mobile segment. Mobile broadband services have become more popular and the usage of smart mobile handsets has been increased. These developments have been fueled by the operators providing lower and flat rate data tariffs. The operators anticipating high profits from this kind of services are trying to meet the consumer expectations with bundled applications and rich content. The increasing mobile traffic may adversely affect the network performance and forces the operators to invest further to improve the capacity of the network. In this context, the commercial provision of LTE services has been commenced in Sweden and Norway at the end of 2009 and 4G services based on wimax technology have been available in USA. The most critical agenda item in the policy and regulatory side is how to promote investment and competition to meet the consumer needs. The new spectrum recourses emerged by the digital dividend will have a critical role in meeting the increasing demand for mobile data services. The lower spectrum bands can provide considerable capacity increases and may be used in rural areas as they need less base stations to cover a certain field. IANA, responsible for assigning IP blocks, has assigned the last five address block to the regional internet registry (RIR) in February 2011. Currently used internet address protocol IPv4 is insufficient in meeting the current and the future demands. Although some technological measures have been taken to increase the efficiency of these addresses the only solution in long term seems to be implementing IPv6 having a high capacity of connecting billions of people and devices. Many efforts and studies are conducted to increase the awareness and researches on IPv6 in many countries. The demand for broadband internet services has been increasing throughout the world. While access speeds are increasing, prices have continuously decreasing. To satisfy increasing demand, operators are also increasing their investment levels and expanding their infrastructures. Consumers, who have more knowledge about quality issues, begin to demand more information from the operators. For this reason regulators in various countries require from operators to publish more quality information regarding their services. 116 Communication services are being offered as bundles. However, the complexity of these bundles may cause difficulties for consumers in selecting and comparing different services. Moreover, bundled services may block consumer switching between operators. Bundled services may also reflect the level of convergence in the telecommunications sector. Especially, voice, broadband and TV has increasingly been offered in the form of triple play services. Communication technologies and broadband services are seen as critical factors for social and economic development in today’s environment. Innovation and competition are considered as crucial factors for serving customer needs in a cost efficient way. In the countries that completed liberalization process, the most important issues become incentivizing innovation, investment and competition in the related markets. The regulators that regulate the sector by means of supply side policies should also consider demand side policies. Electronic communications sector has shown continuous growth in the past. In spite of financial crises, positive development has occurred in the sector and this phenomenon has also increased the importance of electronic communications markets in all countries economies. In this regard, as indicated above, communication technologies and broadband are increasingly seen as critical factors for economic and social development. For this reason, all the countries throughout the world that completed liberalization, are implementing policies to stimulate investment, innovation and competition in the sector. In recent years, electronic communication sector has continuously developing throughout the world. While the demand for fixe lines has been decreasing, it is seen that mobile communications markets have also approached maturity. Apart from this, broadband internet access and use become the most prominent services for consumers in the world. The reason that these services are provided from different platforms increases the competition in different infrastructure investments and lead to construction of alternative networks. The type of the traffic passed from these networks is also beginning to change and it is expected that the importance of data traffic as opposed to voice will continue to increase in the near future. Nearly every country in the world is devising new policies to enable their citizens’ access and use of these services. By increasing the competitive level of these markets, it is aimed to promote the establishment of necessary infrastructure, new services and accessibility of new services throughout the all parts of the country. The parts of the countries that competition level is not deemed sufficient, governments are taking special measures to enable electronic communication services access to all citizens in these regions. It is seen that every country take different approaches to promote the necessary investments for electronic communication infrastructure and services provided under competitive conditions. Especially, in European countries local loop unbundling and ladder of investment policies are adopted to establish alternative operator group that are growing incrementally under this approach. In some other countries, sharing obligations are not imposed for newly founded infrastructure and it is expected to achieve more rapid extension of these networks. In addition to these policies, investments for next generation networks are supported by special state funds and projects in many other countries. 117 Today, the regulatory measures for the development of broadband networks and services have gained high priority and it is seen that the issue will continue take its place in the agenda of the regulatory authorities in future also. Broadband services offered both over fixed and mobile networks have become a part of people’s private life as well business life. Expansion of these services will be the driving force in economic growth of the states and accordingly increasing their competitiveness at the international level. Also plays an important role in citizens' social and cultural development. To create their own broadband ecosystem, each country initially uses its support mechanisms, and then follows the dynamics of the market as common, eventually considers using the universal service funds and benefits from these stages as much as possible. Four key trends in telecommunications technology, competition, and regulation are changing the market and influencing the need for and goals of regulation. These trends can be listed as follows4: n The blurring of distinctions among telecommunications products and the rise of a new class of consumers who look at telephony simply as one of many ways to communicate. n The continued merging of companies, the consolidation of operations, and the divestiture of unprofitable segments in order to extend corporate reach and improve shareholder value. n Changes to the competitive landscape resulting from new products, new providers, and new consumer attitudes. n Legislation reducing regulation and oversight in response to competition among services and suppliers. In the coming period the topics that the regulators will be dealing with can be listed as follows: n Accessing to electronic networks and services n Competition and call termination rates n Open access and net neutrality n Consumer protection n Content n Security issues n Spectrum regulations n Convergence It is not possible that all of these developments in the world do not affect Turkey. It can be said that similar developments will take place in Turkey. Dissemination of electronic communications services which have undeniable contribution to the development of countries is also one of the important targets for Turkey. It will be a great success for Turkey to follow developments in the world and to product its own solutions to be among the producing developed countries in terms 118 of electronic communication technologies. The great demand for electronic communications services, increasing penetration levels, good adaptation to new technologies, new research and development centers built by operators and vendors and the regulation authority having considerable experience can be regarded as positive signals for Turkey. 13.7. Turkish Electronic Communications Market Quarterly Market Data Report In line with the technological developments, electronic communications sector witnessed spectacular developments in recent years. In this environment, monitoring, analyzing and publishing data on electronic communications sector have critical importance for informing all related parts including policy makers, academics, operators and end users. Within the context of Ordinance on Protection of Operators’ Trade Secrets and Publication of Publicly Available Information published in Official Gazette of 28 May 2009, ICTA prepares Turkish Electronic Communications Market Quarterly Market Data Report that attracts considerable public attention. Based on the operators’ data provided to ICTA, Quarterly Market Data Report aims to protect and enhance competition in the electronic communications markets, increase transparency and consumer awareness. Report is published on a quarterly basis and consist of five main chapters including General Market Data, Fixed Market Data, Internet and Broadband Data, Mobile Market Data and, Infrastructure, Cable and Other Services. Within the context of Report; number of subscribers, traffic volumes, market shares, infrastructure and financial data of operators are published and compared with the previous quarters to reflect the current status of the electronic communications market. 13.8. Bulletin Related with Regulatory Developments in EU Member States ICTA benefits from other countries’ experiences especially focusing on the regulatory developments in EU while performing its duties. In this context, published on a monthly basis Bulletin Related with Regulatory Developments in EU Member States focuses on the regulatory developments in the electronic communications sectors of EU member states to gain experiences from other countries. Bulletin is published on ICTA’s website to increase the awareness of sector and end users on regulations. 119 14. Financial and Institutional Information 14.1. Financial 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 2011 was 1,283 million TL while realized 2011 budget was 1,364 million TL. Figure 38: Estimated and Realized Budget Total revenue of the budget equals to 1,364 million TL consisting of 964 million TL from usage charges, 185 million TL from certificates of approval, 90 million TL from contribution share for the Authority’s expenditures and 125 million TL from other sources. Figure 39: Budget Revenues 120 4.39% of the budget expenditures (60 million TL) consist of personnel expenditures, 5.79% (79 million TL) consists of acquisition of goods and services and 5.20% (71 million TL) percentage consists of capital expenditures. The remaining 1,154 million TL (84.62%) consists of transfers to Universal Service Fund and the Treasury. Figure 40: Budget Expenditures Figure 41: Transfers from Budget 121 14.2. New Building Construction For constructing a new building for ICTA, 21.900 m2 of real estate located in City of Ankara, district of Çankaya, town of Beytepe (Lodumlu) with a area of 65,132 m2 , 27030 block and 18 parcel has been bought from Housing Development Administration. The protocol with Housing Development Administration has been done and the final Project has been approved. The approval of technical specifications has been waited from the Administration. 14.3. Education Activities For improving the administrateive, legal and technical capacity of Authority, 34 educational programs under the headings of domestic, abroad and personal progress have been arranged. 391 personnell have attended to these programs. bu eğitim programlarına meslek personeli başta olmak üzere farklı unvanlarda 391 personel katılım sağlamıştır. 14.4. Relations with Media Every day within the year, media file has been prepared, 23 press statement and announcement have been made and 3 times press briefing have been done and 5 times amendments have been sent to press. 122 123 124 125 126 127 128