Telecommunications, Liberalization, and the Growth of the Internet in Turkey

Abstract

The privatization and liberalization of telecommunications services have been debated and pursued with varying speed and success by countries throughout the world. In Turkey, efforts to privatize Tu¨rk Telekom and liberalize the telecommunications regime have not yet been successful. At the same time, the Internet has experienced dramatic growth. While the experience of Turkey illustrates that formal liberalization of basic telecommunications services is not a necessary condition for the growth of a dynamic Internet services provision market, the relationship between the Internet service providers and the provider of basic telecommunications services remains a critical one. Tu¨rk Telekom and policymakers have permitted the creation of a de facto liberal market for Internet services, have supported the creation of Internet infrastructure, and have established a rather level playing field for Internet service providers.