Can cable TV network boost broadband competition in Turkey? : developing policy implications for Turkey

Thesis: S.M. in Technology and Policy, Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2015. === Cataloged from PDF version of thesis. === Includes bibliographical references (pages 95-103). === Turkey is one of the most important emerging markets...

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Bibliographic Details
Main Author: Ozcan, Serdar
Other Authors: David Clark.
Format: Others
Language:English
Published: Massachusetts Institute of Technology 2015
Subjects:
Online Access:http://hdl.handle.net/1721.1/98601
Description
Summary:Thesis: S.M. in Technology and Policy, Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2015. === Cataloged from PDF version of thesis. === Includes bibliographical references (pages 95-103). === Turkey is one of the most important emerging markets in the world. Considering its young educated population prone to use computer technologies, Turkey can make more benefit from broadband services. Compared with OECD countries, however, current broadband access penetration in Turkey, particularly for fixed broadband service, is quite low. Furthermore, there is a limited competition in Turkish fixed broadband market, which is highly dominated by a single incumbent network. Different than many developed countries, cable TV infrastructure, which is an important part of facility based competition in fixed broadband market, has not been developed much and it is still owned and governed by the state company called Torksat which is established primarily responsible for national satellite operations. In October 2014, Finance Minister Mehmet Simsek has announced Turkish government's new privatization agenda covering cable TV operations of Turksat. In this thesis, it is focused on possible effects of the privatization of cable TV network on the competition dynamics of Turkish fixed broadband market and developing policy implications for Turkey to enhance sustainable broadband ecosystem. The research findings, based on the interviews conducted with experts from Turkish telecommunication and media sector, affirms the government's privatization decision that privatization of cable TV platform is needed because of uncompetitive company behavior and lack of private sector motivations in management under the ownership of state. Moreover, privatization is high likely to enhance consumer welfare. Although, the service coverage area of the cable platform is low, it has a potential, to make a significant impact on competition with follow up coverage investments. There are economic incentives, complementarily, to invest in network roll out in Turkey. However, there are challenges mainly rising from municipals' attitude toward new infrastructure deployment. Therefore, developing policies triggering investment incentives for network roll out and eliminating the reluctance of municipals toward telecommunication infrastructure development would be the key policy implications to increase the attractiveness of the cable platform auction and to sustain competitive environment after the privatization. === by Serdar Ozcan. === S.M. in Technology and Policy