Previous chapters of that interview would be read at
- 15 Months After Privatization of Turkish Telecom – 1
- Dr.Doany : Salaries Will Be Get An Increase In March – 2
- Dr.Doany : Oger Telecom Staff is Assisting TT Staff – 3
- Dr.Doany : 26,000 Job Applications Received for TT in a year – 4
- Dr.Doany : We Compliant With Our Concession Aggreement Obligations – 5
- Dr.Doany : 2007 Investment Plan is 1,3 Billion YTL – 6
In that part of interview, we talked about ISP and long distance carriers relations:
Question – 16 : TT has some problems with ISPs and LDTS operators; also, there are some pending court cases. What is the recent situation?
Dr.Paul Doany : We have progressed with many companies, and we continue to settle cases where we can. We have also progressed with nearly all of our vendors in relation to several contractual disputes.
Of course, the sheer size of cases means that we can only do this in stages. But we are making progress, and that is what matters.
Finally, however, I would like to emphasize that we will defend our rights vigorously, and where that necessitates reverting to courts, we shall of course do so.
Question – 17 : Can you tell us about “Bit Stream Access” and “ADSL reseller models”?
Dr.Paul Doany : We have signed a number of ADSL wholesale agreements, in line with the guidelines agreed with the Telecommunications Authority. The companies are expanding mostly in the corporate segments, with some focusing on the mass market.
In addition, we offered bit stream agreements in line with the margins set by the Telecommunications Authority, but so far most companies prefer to start with wholesale, and then switch to bit stream, or LLU (Local Loop Unbundling) in time, as they build up a customer base. This is a sound strategy for them, as it is more effective from a deployment of capital perspective, but that is their decision.
Finally I would like to add that we are awaiting approval from the TA of the new wholesale tariffs and bit stream tariffs, and should be announcing these within a week or so. In that regard, the conditions for competitors will further improve, and we hope to see increased market share of resale, in addition to much faster deployments of bit stream and LLU.
Question – 18 : These resellers claim that they have problems in getting ports and/or bandwidth from time to time (remember Smile ADSL). Will these issues be solved in 2007?
Dr.Paul Doany : We have eased some of the nominal requirement for the smaller service providers, to minimize their costs as best we can. For example, we reduced the country distribution requirement for ports, which increases their costs. We intend to further improve this as they build up to the specified level in the current agreements.
We have also simplified the ‘port application process’, so that a certain level of ports may be ‘reserved’ for the ISPs, without charge, and this should ease the application process, and also lower costs of the competing companies. This reserve allocation will be determined by size of the competitor, typically aimed to be a percentage of their monthly gross additions.
We are further improving the ADSL connection charge, which will halve the cost to resellers, thus lowering their cost of acquisition, and promoting competition amongst all ADSL service providers this year.
Finally, we have also offered to increase the applicable resale margins, however, all these requests are subject to TA approval, and as noted earlier, we expect approval very soon now, following several weeks of discussion with the regulator.
At the following chapter, ISP and Long Distance Carriers relations will be discuss Dr.Paul Doany : Our Real Competitor Is Mobile – 8
Turkish translation of that part at Doany : Toptan Tarifelerimiz TK’da Onay Bekliyor – 7
Whole interview as Turkish and English, will be reached at Paul Doany Interview file.
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