SM market to
hail new partners
“ka ss
‘Turkey's GSM make, which hasavol-
usec 6 milion subseribers wil grove
futher trough a new implementation
that willalow corapanies offer phone
line services jus ike GSM operators.
The Telecommuricatons Axthority
has included the Mobile Network Vie
tual Operator (MNVO) project in its
plan ‘or the second half of tae yea:
rkey’s weekly economy magazine
onomist reported.
‘Virtual operators which ar expected
to begin receiving licenses in June, will
be able to form their own customer
portolios by making use ofthe infra
frochur Fone or more GSM operator,
They wil also have an opportunity #0
sell GSM lines under thei own ban’
‘They wil ao be able to fom thek in
frasrctures vi ateleeom platform, and
tse the voice networks ofthe telecom
companies. Global telecom company
[effort and local companies Vepatl
and Kognet are interested in the issue.
Many Turkish companies, such a5,
Boyner Holding, Smile Holding
‘Teknosa, Migros, CarefourSA Dia
as well a8 several banks incding
Garant, co-owneel by General Hectic
Co, are geting eady to benefit feom
the Implementation. Moreover, three
‘major sports chibs Fenerbahce,
Galatasaray and Beyiktay air to be a
part of the competition.
The Telecommurications Authority
Law, espected tobe rte by Pala
rent soon, i waited forthe lal ar
rangement The masket which curently
Anew implementation will open a path for companies to
operate in Turkey's GSM market. With the Mobile Network
Virtual Operator system, firms including Boyner will be
able to offer GSM services, after obtaining licenses
has three operators, is expected to de
velop further and obtain an annual
‘gronth of 10 percent. There are over 300
[MINVOs operating werd sal Ser.
hat Overon, chairman of the Turkish
Telecommunications and Energy Con
‘sumer Rights and Sectoral Research As
sociation (TEDER,
‘AMVNO named Saunt which
caused the Finnish market to witness
35 percent decinein prices and cost the
‘operators 18 percent revenue losses
reached 10 percent market share, he
‘sad, The implementation will not ring
in profits for wo or thee years, Ozeren
‘a adding thatthe company valve,
however, wil nerease upon reaching a
cea amount of subscribers
Fierce competition
‘With the arrival ofthe vital opera
tows, varius services will appear de to
the competition, bringing a decline in
prices. Turkey’ biggest mobile-phone
‘operator, Turkcell says that wil con
tebute to the development of the new
market structure with its infrastructure,
‘Virtual operators wil entrinto compe
tion to inerease brand aveareness and
create compary’vale, an aunch cam
aignsin favor of emsurers.
Ieis generally informatie and retail
companies that offer virtual operator
services abroad. Virgin Mobil, estab
lished by British bilionaire Richard
June
‘Branson in 1993, has reached 5 milion
subscribers asa virtual GSM operat.
Carphone Warehouse, wich hasa mo.
Tale phone sale chain in the United
Kingdom, as wel as"Tesco, kero for
itssupermarket chain has MVNO com
panies. Boyner Group is the only com
panyin'Turkey that has nsiounced the
date to start operating inthe fed. The
empany pansto launch the peojeet his
autumn when the number potabilty
wl be efective
Banks and their subsidiaries are
tunable to operate inthe GSM fel in
accordance with the legislation. “Tis
possible for the banks to invest in
this field via the companies formed
‘under the umbvella of the holdings
they ace affiliated with, said Cenk
Soyak, managing director at forte,
‘which has now entered Turkish mar
ket. "We foresee the first twa or
three banks that will enter the sector
will gain 30-to 40 percent of the
Turkey's MVNO market
Unlike other counts, GSM opera
tors in Turkey’ allocate a 15 percent
share fron thelr turnover tothe Trea
su, said Radvan Ugu secrtary gen.
ral of the Turkish Competitive Teloo
Operators’ Association (HBEKODER),
The negotiations between the
“Telecommunications Authority and the
Ministry of Finance are cngoing to pre
‘vent any price burden on citizens.”