Virus impact over each market - telecom operators, government agencies and regulators' responses - revised forecasts for the next 5 years.
The telecommunications sector in Kyrgyzstan has been generally characterised by an open market that welcomes both foreign and domestic investors.
Fixed broadband penetration continues to grow strongly but from a very small base. It remains very low mainly due to the dominance of the mobile platform. In addition, the limited and declining number of fixed telephone lines is restricting more widespread development of fixed broadband. Over the next five years to 2024 low to moderate growth is expected from this small base.
The mobile subscriber growth rate in Kyrgyzstan has slowed considerably over the past four years due to a mature mobile market.
MegaCom has won a contract to partner with fixed line operator Kyrgyztelecom’s KT Mobile subsidiary in developing nationwide cellular services. The deal will essentially enable KT Mobile to launch as an MVNO over MegaCom’s network.
Moderate growth is predicted over the next five years to 2024.
Mobile broadband continues to grow strongly in Kyrgyzstan. The mobile broadband subscriber penetration has grown strongly over the past five years. 4G networks now cover over 50% of the nation as the major mobile operators gain momentum in their rollouts.
Strong growth is predicted over the next five years to 2024. The mobile broadband market will be driven by increasingly faster speeds offered by the mobile operators as they roll out 4G and eventually 5G networks and improving tariffs due to strong competition.
MegaCom has launched a ‘Safe City’ project in the capital Bishkek in collaboration with Russian company Vega with applications to include video surveillance of road traffic.
BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.
On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
Paul, Many thanks for your inputs yesterday. You provided a compelling different perspective to our traditional infrastructure focus and this is valuable for our future planning. I also had very favourable feedback from our participants on your involvement.
Stephen Negus, Aurecon
BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.
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