The Failure of Service-Based Competition and the Prospect of
More than ten years after the liberalization of the
telecommunications industry, Turkey still has the least penetrated
and the least competitive broadband market in Europe. In a recently
published article Şahin
Ardıyok and Emin Köksal
investigate this poor performance of the Turkish broadband market
through a comprehensive analysis.
The authors specifically emphasize institutional limitations of
promoting service-based competition. They discuss the compatibility
of the regulatory policies and strategies based on service-based
competition in Turkey. In particular, they analyze political,
regulatory and institutional limitations to promote service-based
competition through the implementation ladder of investment
approach, which relies on offering a gradual level of access to the
incumbent's facility. According to them, almost a decade has
passed with mere attempts to open incumbent's infrastructure
for the alternative internet service providers without a sound
regulatory environment. They conclude that broadband policy to
institute service-based competition has not only failed but also
delayed facility-based competition.
However, as the authors point out, recent developments in the
Turkish broadband market indicate an emerging facility-based
competition through next generation access networks which relies on
building entrant's own network. Ardıyok
and Köksal deeply
analyze the prospect of such a facility based competition
mentioning its limits and potential. After a comprehensive analysis
of market conditions and regulatory policies, the authors
specifically indicate factors and policies that may stimulate
The reference of the article is given below and the full-text is
available from the authors upon request.
Köksal, E., & Ardıyok, S. (2015). Reviewing
regulatory policy for broadband in Turkey: The failure of
service-based competition and the prospect of facility-based
competition. Competition and Regulation in Network
Industries, 16(4), 354–377.
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