2.2 Current Status and Development Trend of Telecommunication Industry
2.2.1 Construction and evaluation of telecommunication infrastructure system
In the whole country of Turkey, there are altogether 16 million mobile phone users. Turkish Telecommunication Corporation has 20 million fixed telephone users.

2.2.2 Current status and development trend of communication industry
In mobile services field, all-round competition has already been carried out, has reached a certain level in both coverage and reliability, and can replace undeveloped fixed terminal network. At present, the insufficient development of mobile services has restricted user's selection to a certain degree. The shortage of carriable phone number and the limitation of inter linkage between networks have interfered services quality and selectivity.
2.2.3 Setup and development tendency of telecommunication operating market
Turkish telecommunication is privatized. Turkey has passed Telecommunication Privatization Act. The privatization of telecommunications is the prerequisite pointed out by the IMF and World Bank, for providing an emergency loan of US$ 16 billion to Turkey, so as to assist this country to break away from economic and financial crisis. Turkey is making great efforts towards the privatization, liberalization and diversification of telecommunication, but the change is slow and not all-sided. The legislation framework is still in modification and the opportunity for investors begins to arise. The pace of privatization will be quickened within several years. At present, it is facing with great political and control risks, which will have adverse effects on the entering of investors.
The Turkish Government will sell 49% of Turkish telecommunication shares and two GSM license. It also plans to establish an independent control agency.
On 22 August 2001, Oktay Vural, Turkish Minister of Transport and Mobile operator declared that Aycell, Turkish Telecommunication Company planned to invest US$ 1.5 billion in 2002. The Turkish Governments has authorized Turkish Telecommunication Company the right of operating mobile phone. Turkish Telecommunication Company Mobile Communication Aycell Branch Company is a state-owned mobile communication operator. In Turkey, Aycell is the second mobile phone company providing the services of 1800 MHZ.
Just the same as other regions in the world, the competition and developing momentum of Turkish telecommunication industry is also very forceful. The Turkish Government is reducing control obstruction substantially, and making efforts to establish a kind of new game regulations. Along with the tide of privatization, the telecommunication industry is undergoing a profound change. The network realizes digitalization, the waiting time is shortened substantially, and the telecommunication fee is reformed toward the direction of cost-basis. The privatization tide, the competition expansion, and the independent control frame have attracted foreign capitals and western technologies. Although the privatization degree at present is already very high, the investors and companies are still full of enthusiasm for expanding market.
The change of control is closely related to the progress of privatization. Turkey has not established independent control agency, but will begin to implement this plan this year. Although there is no completely independent control frame formed, at least the control agency has already separated form government departments in the light of decrees. By establishing its own entity, the process of decision-making becomes more systematic and transparent. The new control agency has many jobs to do, such as helping telecommunication corporations to develop integrally in the aspects of television, multimedia and cable; as well as widening the traditional services. The challenges faced by controllers are supporting technical revolution and simultaneously protect user's rights and interests.
Competition is changing the telecommunication industry in this region. The conceptions of many domestic operator remain to be changed. They still hope to maintain their monopolization of fixed network for many years. However, the reality forces them to change charge structure and services type, so as to compete with mobile phone.
In the fields of international and long-distance call, the Internet suffering no control also forms a big challenge to the Soviet Expense System still maintained. Users use international and long-distance call in large quantities, occupying part of the local traffic.
In a word, the reformation has a bright future, while the range of telecommunication industry is enlarged. Telecommunication corporations include not only the basic facilities of transmission, also multimedia and Internet and even CATV. The most important point is that the development of Internet heightens the significance of telecommunication. The development of Internet in Turkey indicates that the telecommunication demands would double and redouble within the future five years. The domestic operators have the best development opportunity. The future of both privatized telecommunications and the whole industry will be glorious.

2.3 An Analysis for Electronic Information Product Market
2.3.1 Market scale, development features and growth potentials of electronic information products
In 1998, the market value of electronic products in Turkey was US$ 5.533 billion, 9.5% higher than that in 1997. Among them, the first was electronic element with the market value of US$ 1.256 billion, 1.3% higher than that in 1997 and made up 22.7% of the gross market value; the second was electronic data processing products with the market value of US$ 1.085 billion, 11.6% higher than that in 1997 and made up 19.6% of the gross market value.
In 1999, the market value of electronic products in Turkey was US$ 5.195 billion, 6.1% lower than that in 1998. Among them, the first was electronic element with the market value of US$ 1.130 billion, 10.0% lower than that in 1998 and made up 21.8% of the gross market value; the second was electronic data processing product with the market value of US$ 1.063 billion, 2.0% lower than that in 1998 and made up 20.5% of the gross market value.
In 2000, the market value of electronic products in Turkey was US$ 5.551 billion, 6.9% higher than that in 1999. Please refer to the Table for the market condition of Turkish electronic products during 1998-2000.

2.3.2 An Analysis of sales scale, structural features and development potential of electronic information products
(1)Sales scale of electronic information product
In Turkey, personal computers are in great demand. Computer was a kind of office equipment in the past, and now begins to enter into the family of common people as well as middle and primary schools. In Turkey, computer has a great market potential. Compared with USA and EU countries, the computerization level in Turkey is very low. Among each 100 households, only 3 have computers. In Turkey, the sale market of PC is expected to be good this year. The Vestel Bilisim Corporation, the largest PC manufacturer in the country, sold 180 thousand sets of PC in the first quarter of this year; while it only sold 100 thousand sets in last whole year.
(2) Developing potential
In Turkey, the notebook computer has increased sales volume substantially, and has broad prospects. In the first half year of 2000, the sales volume of notebook PC in Turkey was 22.3 thousand sets, a big increase of 82% over the same period of 1999. It is expected that the sales volume in this whole year can exceed 40 thousand sets. Based on the data published by Interpro, the Turkish specialized market investigation corporation, the market scale of notebook computer in Turkey in 1998 was 20.7 thousand sets. Due to the affection of economic contraction, it increased only sligntly to 22.3 thousand sets in 1999. Since 2001, the purchasing power in the market has increased substantially. From January to June, the market sales volume already reached to 22.3 thousand sets. Based on the forecast information of main local importer markets, the market scale of notebook PC in Turkey this year can exceed 40 thousand sets, higher than 36.8 thousand sets originally estimated by Interpro in this year.
Interpro Corporation pointed out that for the market of desk top PC in Turkey, under the sales promotion of divided payments with low interest rate or even interest -free pushed forward successively by manufacturers, the market sales volume reached to 800 thousand sets in 2000. Because the European Football Championships and the Sydney Olympic Games were held in 2000, the output, domestic sales and export of TV in Turkey increased 35% in the first 5 months.
For electronic products in Turkey, compared with the first 5 months of 2000, in the same period of 2001, the output of TV in the whole country increased from 2.64 million sets to 3.56 million sets, with an increase of 35%; the output of large screen color TV increased from 403 thousand sets to 660 thousand sets, an increase of 65%. For the color TV made in Turkey, generally there is 85% exported. It is expected that the export volume in this whole year will reach to 7.50 million sets.
(3) Output value of electronic products
In 1998, the output value of electronic products in Turkey was US$2.390 billion, 14.9% higher than that in 1997. Among them, the first was consumable electronic product with the output value of US$ 1.152 billion, which was 36.8% higher than that in 1997 and made up 48.2% of the gross output value; the second was telecommunication products with the output value of US$ 422 million, which was 8.1% lower than that in 1997 and made up 17.7% of the gross output value.
In 1999, the output value of electronic products in Turkey was US$ 2.137 billion, 10.6% lower than that in 1998. Among them, the first was consumable electronic products with the output value of US$986 million, 14.4% lower than that in 1998 and made up 17.8% of the gross output value; the second was telecommunication products with the output value of US$ 380 million, which was 10.0% lower than that in 1998 and made up 20.5% of the gross output value.
In 2000, the output value of electronic products in Turkey was US$ 2.280 billion, 6.7% higher than that in 1999. Please refer to the Table for the output value status of Turkish electronic products during 1998-2000.

2.4 Development of Information Industry
In Turkey, only 2% of population has computer, and the information industry only occupies 0.6% of total output value in the whole country. Therefore, the computer market in Turkey still has a large room for development.

Import and export status of electronic products
In 1997, the import and export trade of electronic products in Turkey presented unfavorable balance with the deficit balance of US$ 2971 million. In 1998, the import and export trade of electronic products in Israel presented unfavorable balance with the deficit balance of US$ 1.047 billion.
Export status
In 1997, the export value of electronic products in Israel was US$ 644 million, among which, the first was consumption electronic product with the export value of US$ 402 million, which made up 62.4% of the gross export value; the second was electronic element with the export value of US$ 138 million, which made up 21.4% of the gross export value.
In 1998, the export value of electronic products in Turkey was US$ 1.045 billion, 62.3% higher than that in 1997, among which, the first was consumption electronic products with the export value of US$ 747 million, which was 1.86 times of that in 1997 and made up 71.5% of the gross export value; the second was electronic element with the export value of US$ 136 million, which was 1.4% lower than that in 1997 and made up 13.0% of the gross export value.
Import status
In 1997, the import value of electronic products in Turkey was US$ 3.615 billion, among which, the first was electronic element with the import value of US$ 1.157 billion, which made up 32.0% of the gross import value; the second was electronic data processing product with the import value of US$ 767 million, which made up 21.2% of the gross import value.
In 1998, the import value of electronic products in Turkey was US$ 4.188 billion, 15.9% higher than that in 1997, among which, the first was electronic element with the import value of US$ 1.148 billion, which was 0.8% lower than that in 1997 and made up 27.4% of the gross import value; the second was electronic data processing product with the import value of US$ 884 million, which was 15.3% higher than that in 1997 and made up 21.1% of the gross import value.
2.5 Analysis for IT Application
Turkey began to apply Internet in 1997, and at present has 40 Internet services providers. The computers of about 350 people are connected with Internet. By 2000, it is estimated that one million people will use Internet. Concerning the development scale of this market, Turkish enterprise groups have joined in this field one after another. In 1998, the main customers of Turkish computer market are finance industries and jointly operated large-scale enterprises.