The Kyrgyz Republic: Telecommunications Market
Market Overview
The telecommunications market in the Kyrgyz Republic has experienced tremendous growth over the past few years. The mobile/cellular phone market is by far the biggest and most rapidly growing sector of the telecommunications industry in the Kyrgyz Republic. In 2006, revenues of telecom companies amounted to over US$ 135 million, up 23% from 2005. The mobile phone market generates 48% of all telecom revenues. The number of subscribers for mobile services in 2007 has increased by 83% and reached approximately 1.8 million subscribers. In comparison, the number of fixed line subscribers is 460,200.
Telecom Equipment Market
Most telecommunications equipment comes from Chinese producers (Huawei Technologies, ZTE). Although the main factor for most commercial resellers of equipment remains price, the United States retains a solid share in telecom exports to the Kyrgyz Republic, is number three after China and Finland.
Mobile Market
The Kyrgyz mobile phone market is very dynamic, competitive and profitable. There are five mobile operators currently operating in the Kyrgyz Republic. However, there are four additional companies which hold mobile phone operator licenses. Currently, there are two GSM900/1800 operators – Sky Mobile (Bitel and Mobi brands) and BiMoCom (Megacom brand). There is one company that operates in DAMPS standard – Katel. AkTel (Fonex brand) uses CDMA 2000 1X and Sotel (Nexi brand) uses CDMA 3G technology. GSM operators are the most popular among subscribers and comprise 86% of all mobile subscribers in the Kyrgyz Republic. In 2007, the estimated penetration rate has reached 30%. Revenues of mobile operators exceeded US$70 million.
Internet and IP Telephony
The Kyrgyz internet market has been developing quite rapidly, but it is far from being well-developed. In 2006, there were 350,000 internet users according to National Communications Agency, 75% more than in 2005. Nevertheless, this constitutes a very low penetration rate of 6.7%. Primary users are organizations and internet cafes. Home internet is available, but not all people can afford to buy a computer and pay for internet services, which are significantly higher than in Western countries. Currently there are no affordable unlimited plans available for residential users. Large downloads generally incur additional charges. All tariffs for fast internet are traffic-based, increasing in cost in direct proportion to usage
There are several internet services providers in addition to those described above. ElCat and Asiainfo are two of the additional providers. Both internet providers offer dial-up, DSL and other services. For more information, please visit http://www.elcat.kg, and http://www.asiainfo.kg,
IP Telephony has been developing very rapidly, with lots of kiosks being opened close to residential districts as well as in business districts. Such kiosks offer affordable tariffs for calling abroad. IP telephony is usually present in internet cafes too
Opportunities for US companies
·-- Procurement of telecommunications equipment both for fixed-line and mobile operators
·-- Mobile phones of GSM and CDMA standards
·-- Privatization of KyrgyzTelecom national fixed line operator
Telecom Equipment Market
Telecom Equipment Market
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