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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.”

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