1. Information and Communication Technologies Authority of the Republic of Turkey (ICTA) Özgür Fatih AKPINAR ofakpinar@btk.gov.tr NRA’S ROLE TO ENSURE COMPETITIVE MOBILE MARKET -TURKISH CASE-

2. Outline 1. NRA’s Role: Regulations 2. Current Situation in Mobile Market 3. Conclusion

3. NRAs Role: Regulations

4. NRAs Role  Ensure Competitive Mobile Market  Off-net traffic should be increase  Call termination rate should be cost oriented  Retail margin between on-net and off-net price should be narrowed.  Ensure Easy Switching Methods  Target to Increase Traffic Volume

5. REGULATIONS  1. Regulation: Upper Limit for Retail Mobile Tariffs  2. Regulation: Mobile Interconnection Regulations  3. Regulation: The Board Decisions dated 25.03.2009 and numbered 2009/DK-07/149 & 21.10.2010 and 2010/706.  4. Regulation: Mobile Number Portability

6. 1. Upper Limit for Retail Mobile Tariffs Aim; Obviating pirce-based exploitative abuses as well as alleviation of network effect by preventing the GSM operators to set high margin between the off-net and on-net tariffs (Including PSTN calls) 6

7. 2. Mobile Interconnection Rates (euro cents) 1 Turkish Kurus = 0.47 €-Cent

8. Mobile call termination rates in EU Euro cent

9. 3. Specific Board Decisions (2009/DK-07/149 and 2010/706.) Mechanism; This Board Decision requires the SMP operator in mobile access and call originitaion market (Turkcell) to ensure its accrued on-net tariffs are not below its off-net call termination fee. Aim; P reventing SMP operator to abuse its position through network externality.

10. Specific Board Decisions (2009/DK-07/149) 10 On-net rates fall below termination rates. Termination rates over the on-net tariffs

11. Specific Board Decisions (2009/DK-07/149) 11 increase on-net tariffs - Decrease terminations charges

12. 4. Mobile Number Portability Regulation Aim; Ensuring a more competitive environment by increasing the flexibilies of the consumers in changing their operators. Mobil number portability has been used since 9 November 2008.

13. Mobile Number Portability (MNP)

14. Current Situation in Mobile Market

15. Total call traffic volumes

16. 16 Traffic volumes by call origination (%)

17. Off-net traffic volume is increasing

18. Off-Net mobile volume (mil. minutes)

20. CountriesMoU (minutes) France 248,8 Irland 248,7 Turkey239,4 UK 179,7 Spain 158,2 Italy 137,8 Portugal 129,8 Germany 110,4

22. M obile Messaging Services

23. EFFECTS OF THE ACTIONS The change in market shares of the mobile operators According to revenue of the operators

24.  Effectiveness should not be ignored as well as competition.  Cost oriented call termination rate has vital importance for competition.  Hesitation of decreasing about tax revenue is in vain. (Although call termination rate has been decreased almost %300, off-net traffic volume has increased almost %400)  Effective MNP is also important tools for competition.

25. Thank you Özgür Fatih AKPINAR ofakpinar@btk.gov.tr