Executive summary
Tajikistan’s mobile market continues its run of strong growth
When the Soviet Union collapsed Tajikistan’s telecommunications infrastructure was arguably the least developed of all the former Soviet republics. With a telecom network that was near to totally dysfunctional, the government inherited the daunting task of bringing it up to modern standards. Apart from its outmoded and poorly maintained infrastructure, a succession of natural disasters causing damage to plant and equipment further undermined the integrity of the network.
The Tajikistan government announced its National Program of Communications Development in the mid-1990s. This was aimed particularly at the modernisation and development of communications throughout the country. Specifically it included plans to privatise communications, broadcasting and television to attract foreign investors, although the state was expected to remain a major shareholder.
The ambitious plan began to be implemented within the context of a traditional regulatory and operating structure. The Ministry of Communications (MOC) was made responsible for providing all public communications, including local, national and international telephone services, as well as postal services, TV and radio broadcasting. As part of a long-term program, the MOC aimed to build a national communications system to world standards. The government also laid out plans to ultimately transfer all responsibilities from the MOC to a new independent regulatory authority which duly happened. The Communications Regulatory Agency (CRA) now has responsibility for regulating the telecom sector.
The government indicated there would be a transition period leading up to privatisation of Tajiktelecom in 2004 and liberalisation of the local and international long-distance switched telephony sector in 2006. As part of the privatisation strategy, a substantial number of private operators were allowed to enter the telecom market after 1996, notably in the mobile and internet sectors. In fact, telecommunications has become one of the most dynamically developing sectors within the Tajikistan economy. Although still inadequate, its contribution to the county’s GDP has been actively growing, as new and diversified technologies were quickly becoming the norm. The privatisation of Tajiktelecom has, however, been subject to a series of delays.
The state-owned incumbent operator, Tajiktelecom, continues to maintain a major presence in the market, providing local, long-distance and international telephone services throughout the country. In addition, seven mobile operators had been licensed as well as more than 10 Internet Service Providers (ISPs).
Tajikistan’s mobile sector has been growing strongly for over a decade and is the standout feature of the country’s telecom industry. Mobile penetration had passed the 100% milestone in 2012 and the mobile subscriber based was continuing on a positive growth path into 2013. The launch of 3G mobile services in Tajikistan has also provided an optimistic note in the telecom market place. However, overall the telecom sector has continued to struggle. With one of the lowest fixed-line teledensities in the region (around 6% in 2012), at least the market was continuing to grow, although only at a modest rate. Fixed internet connections are also relatively low, but an expanding internet user population was a positive sign for the country’s future.
Market highlights:
- By 2012 mobiles in Tajikistan had reached an estimated 130% penetration, with subscriber growth continuing to run at a healthy annual rate;
- Overall mobile subscriber numbers had increased by a factor of almost 40 in just seven years;
- The growth rate peaked over that period when in 2007 Tajikistan’s mobile subscriber numbers expanded at an annual rate of almost 200%;
- Four mobile operators were granted 3G licences and subsequently launched networks;
- Initially demand for 3G services was low, but the market expanded rapidly through 2012 and into 2013;
- Fixed-line penetration in Tajikistan was around 6%, but this market remained sluggish with relatively little further growth at the moment;
- Although up to date official figures were not available, by 2012 the conversion of the country’s fixed network from analogue appeared to have achieved a digital level in excess of 90% and the country was well on the way to achieving its 100% target;
- Tajikistan’s internet usage has been expanding quickly, with reports suggesting internet user penetration of about 16% by 2012;
- However, the actual number of internet subscribers remained relatively low (estimated penetration of fixed internet was around 0.5% in 2012);
- Fixed broadband internet access was virtually non-existent, although mobile broadband was growing quickly;
- In 2012 Sweden’s TeliaSonera attracted criticism for ‘abetting an authoritarian regime’ with its operations in Tajikistan.
Tajikistan – key telecom parameters – 2012 - 2013
Category
| 2012
| 2013 (e)
|
|---|
Fixed-line services:
|
|---|
Total number of subscribers
| 400,000
| 420,000
|
Internet:
|
|---|
Total number of fixed subscribers1
| 30,000
| 35,000
|
Mobile services:
|
|---|
Total number of subscribers
| 9.2 million
| 11.0 million
|
(Source: BuddeComm)
Note: 1Estimates for both 2012 and 2013
This report provides an overview of the trends and developments in the telecommunications markets in Tajikistan. Subjects covered include:
- Key statistics;
- Market and industry overviews;
- Major operators (mobile and fixed);
- Regulatory environment;
- Infrastructure;
- Mobile market – voice and data;
- Internet market.
