Kazakhtelecom - The Times Of Central Asia

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Rural Internet

Kazakhstan Telecom Investment Tops $2.2 Billion, but Rural Fiber Gaps Persist

Investment in Kazakhstan’s telecommunications sector has exceeded $2.2 billion over the past three years. Yet as of October 2025, only 2,606 of the country’s 6,179 villages were connected to backbone fiber-optic networks. Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev presented the investment figures at the 2026 Mobile World Congress in Doha. By the end of 2027, the government aims to make high-speed wired internet available in more than 90% of villages. An August 2026 government update said fiber-optic lines had been laid in just 12 villages under an agreement with Kazakhtelecom to bring high-speed internet to more than 3,000 villages. However, even the presence of a backbone network does not mean that every household has internet access. Connecting residents requires local distribution lines and additional equipment. In small and remote villages, building this infrastructure is expensive, while the number of potential subscribers is limited. With support from the World Bank, Kazakhstan is implementing a separate project to build the local networks needed to connect homes in 1,123 villages. Operators will be eligible for reimbursement of up to half their verified capital expenditures after completing the work. The project is intended to make connections available to more than 445,000 households, representing approximately 2.3 million people. The minimum target speed is 100 megabits per second. Where laying cables is too expensive, satellite connections offer another option. In September, Beeline Kazakhstan and Starlink Mobile launched a Direct to Cell service that allows compatible smartphones to exchange text messages and use certain online features via satellite. The technology is primarily intended for areas without terrestrial mobile coverage and is not yet a substitute for full broadband internet. According to the International Telecommunication Union, a basic fixed-broadband package in Kazakhstan cost the equivalent of 0.79% of monthly gross national income per capita in 2025, compared with a global median of 2.5%. For residents of remote villages, however, affordability also depends on equipment and connection costs, as well as whether a network is available. Kazakhstan is also developing international data transmission infrastructure. On October 15, Kazakhstan and Azerbaijan inaugurated a submarine fiber-optic cable between Aktau and Sumgayit. The 380-kilometer line, with a planned capacity of more than 400 terabits per second, is intended to provide an additional data route between Asia and Europe through Azerbaijan, Georgia, and Türkiye, offering an alternative to existing routes through Russia. Configuration work on the Trans-Caspian cable was due to continue through the end of 2026. Bagdat Mussin, chairman of Kazakhtelecom’s management board, said the project’s first practical benefits were not expected before early 2027.

Artificial intelligence

Kazakhstan’s AI Strategy: Eurasia’s Emerging Digital Power

Astana hosted AI & Digital Bridge 2026 on October 1–3, and NVIDIA founder and CEO Jensen Huang is scheduled to visit the capital on October 23 for a fireside chat with Zhaslan Madiyev, Kazakhstan’s Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development. Speaking to The Times of Central Asia earlier this month, Madiyev described a strategy that goes beyond building data centers. Kazakhstan’s digital development builds on capabilities it already has (a mature digital-government system, an established energy and industrial base, cross-border fiber and data-transit infrastructure, and a growing technology sector) to move beyond carrying data and exporting raw materials toward processing more data and producing more technology at home. The push aligns with President Kassym-Jomart Tokayev’s call for Kazakhstan to become a fully digital nation, with artificial intelligence (AI) integrated across the economy. Digital Services and Startup Growth Madiyev began with what Kazakhstan already does, describing the country as known for advanced government technology, or GovTech. He cited Kazakhstan’s 24th-place ranking in the United Nations E-Government Development Index. More than 90% of public services are available online, around 90% of transactions are cashless, and approximately 40 personal documents have been digitized, he said. Digital documents have the same legal standing as physical ones, allowing people to use their phones when traveling, visiting banks, or accessing government services. An important part of that development was opening the government’s digital platform to banks rather than keeping public services within a single government application. Banks including Kaspi, Halyk, and Freedom can integrate those services into platforms customers already use, helping expand adoption and making services easier to access. Madiyev cited vehicle purchases and re-registration completed through an application in three to five minutes, mortgage approvals within a day, and a digital process that helps mothers register newborns and receive eligible benefits directly into their bank accounts. The aim is to organize services around people’s life events, with one completed process triggering the next rather than requiring separate applications to different institutions. He also pointed to Astana Hub, which has more than 2,500 registered startups and information technology (IT) companies exporting services to more than 100 countries. Its network extends across Kazakhstan and into Silicon Valley, Shanghai, and Dubai, with further expansion planned in Southeast Asia and Europe. Those overseas locations provide working space, access to investors, and acceleration programs to help companies enter international markets. A venture fund-of-funds, predominantly financed by the private sector and standing at approximately $115 million at the time of the interview, is intended to increase the financing available to regional startups. Madiyev said companies may need to raise capital six or seven times on the way to becoming unicorns, making access to successive funding rounds important. Connectivity That Serves the Region Kazakhstan already carries international traffic. Kazakhtelecom’s 2024 annual report records 200 gigabits per second (Gbps) of Europe–Uzbekistan transit capacity and 100 Gbps on the Europe–Kyrgyzstan route, while the Internet Society rates Kazakhstan’s upstream connection diversity as “Very Good.” Kazakhstan’s international internet capacity stood...

Data Centers

Kazakhstan Data Centers: Will There Be Enough Electricity and Customers?

Kazakhstan aims to become a regional hub for data processing and artificial intelligence (AI). Data Center Valley is under construction in Ekibastuz, United States-based Firebird is involved in preparations for a major computing complex, and new fiber-optic lines are expected to connect the country to Europe across the Caspian Sea. Authorities hope to attract billions of dollars in investment and develop hundreds of megawatts (MW) of capacity. The main questions are whether the power grid can meet such demand and whether there will be enough international customers. Ekibastuz: The First 50 MW of a Promised Gigawatt At the center of these plans is Data Center Valley in Ekibastuz, an industrial city in northeastern Kazakhstan. The complex is eventually expected to expand to 1 gigawatt (GW) of capacity. According to the government, the first phase is designed for 50 MW. By August, earthworks were approximately 90% complete, and builders had begun laying foundations, with the first facility scheduled to launch in June 2027. Firebird AI: $10 Billion in Agreements On October 2, national telecommunications operator Kazakhtelecom, KT-Telecom, and Firebird AI KZ signed an initial agreement covering the construction and long-term leasing of computing infrastructure. Earlier, the government announced a package of agreements worth up to $10 billion with Firebird, involving U.S.-based NVIDIA as a technology partner. The project provides for the potential deployment of up to 100,000 graphics processing units (GPUs), specialized chips used to train and run AI systems. For now, the $10 billion represents the announced value of the agreements. How much money will go directly toward construction and equipment purchases has not been publicly disclosed. Singapore-based Energy Capital Global has also expressed interest in Kazakhstan’s market. The company is considering a data center campus at Data Center Valley with an initial phase of approximately 100 MW and the potential to expand to 1 GW. In August, it signed a memorandum of understanding with KT-Telecom. Trans-Caspian Cable: A New Data Transmission Route Data centers need fast communications links to serve international customers. Kazakhstan and Azerbaijan are developing an undersea fiber-optic connection between Aktau and Sumgait. On October 6, Kazakhstan's Minister of Artificial Intelligence and Digital Development, Zhaslan Madiyev, announced that the approximately 390-kilometer undersea section of the cable had been completed. The line is scheduled to launch in October 2026. The Trans-Caspian route is intended to connect China and Central Asia with the South Caucasus and Europe. For Kazakhstan, it offers an opportunity to reduce dependence on Russian transit routes. According to the Caspian Policy Center, approximately 95% of the country's outbound international internet traffic passes through Russia. Kazakhstan is also building an approximately 4,500-kilometer West–East fiber-optic backbone, connecting the Caspian coast with the Chinese border. More than 2,200 kilometers have been laid, with construction scheduled for completion by the end of 2026. The new routes would also provide alternative connections, reducing the risk of widespread disruptions if individual lines are damaged. The Existing Market: Tens of Megawatts Versus Hundreds Planned As of October 7, 2026, the industry directory...

Internet Outages

Telegram Outage Affects Users Across Kazakhstan

Telegram users across Kazakhstan reported widespread disruptions to the messaging service on August 13. Messages were delayed and media files failed to load, while some users were unable to access Telegram on mobile or desktop devices. The outage monitoring service Detector404 recorded a sharp rise in reports from several regions. Kazakhstan’s Ministry of Artificial Intelligence and Digital Development confirmed that it had received complaints and was examining them, although its initial statement did not identify the cause of the disruption. Telegram is widely used in Kazakhstan for personal communication and news, while government agencies and businesses also use the platform. The influence of Telegram channels has led officials to raise concerns about anonymous accounts and disinformation. Kazakhtelecom, the country’s largest telecommunications operator, said its network was operating normally, with no disruptions detected in its infrastructure. However, the company recorded a sharp drop in Telegram traffic at international interconnection points in Frankfurt and Moscow and asked Telegram’s administrative team for an explanation.

Trans-Caspian Cable

Kazakhstan and Azerbaijan Begin Laying Trans-Caspian Fiber-Optic Cable

Kazakhstan and Azerbaijan have begun laying a fiber-optic cable across the Caspian Sea, marking the start of offshore construction on a long-planned digital connection between Central Asia and the South Caucasus. A specialized cable-laying vessel has departed the Port of Baku and begun laying the line toward Aktau, the Ministry of Artificial Intelligence and Digital Development of Kazakhstan announced. Weather permitting, the underwater installation is expected to take 15 to 20 days. Testing and commissioning are scheduled to be completed by the end of 2026. The 380-kilometer cable will connect Sumgait in Azerbaijan with Aktau in western Kazakhstan. It will be capable of transmitting up to 400 terabits of data per second, according to AzerTelecom. The full system, including testing and commissioning, is scheduled to be completed by the end of 2026. The project is being implemented by CaspiLink B.V., a joint venture established by Kazakhstan’s Kazakhtelecom and Azerbaijan’s AzerTelecom. It forms part of the Digital Silk Way initiative, a planned telecommunications corridor linking Asia and Europe. Preparatory work included surveys of the Caspian seabed and the selection of a route avoiding anchorage areas and military exercise zones. The armored cable was manufactured and tested in China before being delivered to the Kazakh port of Kuryk and transported to Baku for installation. As previously reported by The Times of Central Asia, the project had entered active implementation after several years of delays and changes among the participating companies. The cable was first proposed in 2019, although earlier completion targets were not met. Once operational, the link will provide a direct subsea data route between Kazakhstan and Azerbaijan. It will also expand Kazakhstan’s capacity to carry internet traffic between Asian and European networks.

Telecommunications

U.S. Development Finance Corporation Signals Interest in Tele2 Upgrade in Kazakhstan

The U.S. International Development Finance Corporation (DFC) has announced its interest in helping modernize Kazakhstan’s telecommunications infrastructure through a potential partnership with Qatar’s Power International Holding (PIH), which owns Mobile Telecom-Service LLP, operator of the Tele2/Altel brands. DFC Chief Executive Officer Ben Black and PIH President and Group CEO Ramez Al-Khayyat signed a letter of interest and financing proposal in Astana on June 16. The document outlines a proposed partnership to support Tele2’s transition to equipment supplied by “trusted vendors,” a move aimed at improving Kazakhstan’s digital security and supporting the rollout of 5G networks. According to DFC, the proposed investment would help build more secure telecommunications infrastructure for 5G connectivity and digital services. The corporation said it sees Kazakhstan as a key part of the Trans-Caspian Corridor and an important destination for investment from the United States in Central Asia. “This deal will be truly transformative, a game-changer for regional connectivity, and a major step toward building economic momentum in Kazakhstan,” Black said. The announcement follows the completion of the sale of Mobile Telecom-Service LLP, which operates under the Tele2/Altel brands, to PIH Communication LLC, a subsidiary of Power International Holding. According to Kazakhtelecom’s audited financial statements for 2025, cited by Kapital.kz, Kazakhtelecom received the second tranche of the deal, amounting to $25.415 million, on January 22, 2026. The first payment of $700 million was made by PIH Communication LLC on January 16, 2025, bringing the total paid so far to $725.415 million. The planned sale of Mobile Telecom-Service received political backing in February 2024, following talks between Kazakh President Kassym-Jomart Tokayev and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani. Kazakhstan’s telecommunications sector is also attracting greater attention from the U.S. As previously reported by The Times of Central Asia, Tokayev met with Black in Astana on June 15 to discuss prospects for expanding economic cooperation between Kazakhstan and the U.S. Tokayev described Black’s visit as a continuation of agreements reached during talks in Washington in November 2025 and as a sign of growing U.S. engagement in Central Asia.