The Telecommunications Authority (the "Authority") continues to amend sector-specific regulations to further liberalize the telecommunications market in Turkey and better respond to the needs of the market players. This article aims to summarize certain material amendments made to the Regulation on Authorization of Telecommunications Services and Infrastructure (the "Authorization Regulation") as published in the Official Gazette on 17 April 2007.
Based on the amendments, governmental authorities and capital companies may now apply to the Authority and obtain permission to establish and utilize temporary telecommunications infrastructure for testing purposes only.
Previously, the mobile telecommunications operators were not allowed to provide telecommunications services other than the services determined under their existing concession agreements. Now, operators may participate in tenders regarding new services and infrastructure to be established for the provision of
such services, provided that the new services in question constitute the continuance and progression of the telecommunication services provided through the infrastructure owned under the existing concession agreement. The current Authorization Regulation explicitly provides that IMT-2000/UMTS services and infrastructure constitute the continuity and progression of GSM services and infrastructure. Furthermore, it is stated that a breach by the operator under one concession agreement may result in termination of the other concession agreement by the Authority.
Another significant amendment is that the Authorization Regulation now explicitly provides that concession agreements may only be executed after obtaining the opinion of the Council of State (Danistay) (the highest administrative court in Turkey). Previously, there was reference to the waiting periods in the Constitution within which the Council of State must render its opinion, and it was not clear whether the Authority would be free to execute the concession agreement should the Council of State fail to render its opinion within the time limits prescribed.
There are also material amendments to permission and notification requirements for share transfers and change of control of companies operating under different licenses. Furthermore, the results of non or partial usage of the frequencies allocated are now regulated separately with regard to operators being party to a concession agreement or holding a 1st Type Telecommunications License, and with regard to other operators under new provisions inserted into the Authorization Regulation.
Another noteworthy amendment concerns the scope of activities of companies applying for a 2nd Type Telecommunications License or a General Permission, according to which the companies may now explicitly include in their Articles of Association, the sale of necessary and/or related equipment regarding the services they provide and provision of relevant installation, maintenance and repair, and consultancy services in connection therewith. Accordingly, the debates as to whether or not these companies were allowed to perform such equipment sales and carry out the said additional services have been laid to rest.
Finally, the relevant annexes of the Authorization Regulation have also been amended to revise the definitions of service quality, data transmission services over terrestrial lines, cable platform services and telephone services between cities, in most instances to further clarify such definitions, and the scope of services to be provided by cable platform services providers has been extended.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
