Telecommunications - The Times Of Central Asia

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Starlink internet

Kazakhstan to Provide Satellite Internet to Neighboring Countries via Starlink Stations

Kazakhstan plans to use Starlink satellite communication ground stations located on its territory to transmit internet traffic to neighboring countries. The announcement was made by Deputy Prime Minister and Minister of Digital Development, Innovation and Aerospace Industry Zhaslan Madiev. According to Madiev, the development of digital infrastructure is intended to meet domestic demand while also strengthening Kazakhstan’s position as a regional hub for digital connectivity. Internet traffic will be routed through Starlink gateway stations located in the country. He stated that satellite internet delivered via Kazakhstani ground stations is expected to become available to Tajikistan as early as 2026. In the future, the system may also be extended to Mongolia and Kyrgyzstan. At the same time, he noted that Uzbekistan has proposed off-take contracts related to a trans-Caspian fiber-optic communication line. The deployment of Starlink infrastructure in Kazakhstan was formalized in a separate agreement between the country’s authorities and representatives of Starlink last summer. In parallel, the government is expanding terrestrial digital infrastructure. According to the ministry, an additional 1,900 villages will gain access to fiber-optic communication lines this year. In 2027, coverage is expected to exceed 90% of rural settlements. Authorities also plan to ensure communication coverage along all national highways, at border checkpoints, and on the main passenger routes operated by Kazakhstan Temir Zholy. Internet access is also set to become available on board the national airline for the first time.

Telecommunications

Kazakhtelecom CEO Confirms 2026 Launch of Caspian Submarine Cable Project

Kazakhstan and Azerbaijan have entered the active implementation phase of the long-anticipated submarine fiber-optic cable (SFOC) project across the Caspian Sea. According to Bagdat Mussin, CEO of Kazakhtelecom JSC, the underwater cable system is scheduled for completion and launch by the end of 2026. First proposed in 2019, the project involves the construction of two parallel fiber-optic lines, spanning approximately 380 to 400 kilometers, to connect the digital infrastructures of Kazakhstan and Azerbaijan. Originally, Kazakh telecom operators Transtelecom and KazTransCom participated alongside Azerbaijan’s AzerTelecom. However, by 2022, the Kazakh companies had exited the venture, and in 2023, Kazakhtelecom assumed the lead role on behalf of Astana. On August 22, 2023, Kazakhtelecom and AzerTelecom formalized their partnership by signing a joint venture agreement in Amsterdam. Mussin stated that national operators have now completed site surveys of the coastal infrastructure, identifying locations for both a beach manhole and a cable landing station. A specialized survey vessel, currently operating from the Kazakh port of Bautino, is mapping the seabed to assess depth, terrain, underwater currents, and geological conditions to finalize the cable route. “The bridge's capacity is designed to meet future demands and will support at least 400 Tbit/s. When the first byte of data travels through this artery, the Caspian will become a unique digital bridge between Asia and Europe,” Mussin said. As previously reported by The Times of Central Asia, the total cost of the project is estimated at $50.6 million. The cable is part of a wider regional initiative to advance digital transformation and sustainable connectivity across Eurasia.

Telecommunications

Uzbekistan to Sell Mobiuz in Bid to Attract Foreign Investment

Uzbekistan is aiming to raise $300 million through the sale of its mobile operator Universal Mobile Systems LLC, better known as Mobiuz, according to a report by Bloomberg. The planned sale forms part of President Shavkat Mirziyoyev’s broader push to reduce state ownership and attract foreign investment into key sectors of the economy. Sources familiar with the matter said the government would support a buyer who is willing to merge Mobiuz with other local telecom companies. Investors from Qatar, Saudi Arabia, Azerbaijan, and Europe have already expressed preliminary interest. A formal tender for 100% of Mobiuz was launched in June, with interested parties required to submit letters of intent by August 1. Rothschild & Co. is acting as the primary financial advisor for the deal. The State Assets Management Agency of Uzbekistan declined to comment on the sale. Part of a Broader Privatization Drive The Mobiuz sale is a key component of Uzbekistan’s ambitious privatization program, which aims to generate at least 10 trillion soums (approximately $786 million) in revenue this year. The government plans to divest stakes in 29 major companies across industries such as telecommunications and energy by the end of 2026. As of the end of 2024, Uzbekistan had 35.6 million mobile subscribers. Mobiuz accounted for roughly 20.9% of the market, according to BMI, a division of Fitch Solutions. The operator’s main competitors include state-owned Uztelecom JSC, which had a brand valuation of $241 million last year, as well as Coscom LLC and Unitel LLC, the latter of which is owned by Dubai-based Veon Ltd. In 2024, Mobiuz reported $164 million in revenue and an EBITDA of $41 million, according to figures from the State Assets Management Agency. Strategic Investment Opportunity Veon declined to confirm whether it plans to participate in the tender but said it “regularly reviews organic and inorganic growth opportunities” and considers Uzbekistan a key market in which it is “pursuing an ambitious growth strategy and expanding our digital portfolio.” The Uzbek government hopes the sale will bring in fresh capital and modern expertise to support the development of the country's rapidly expanding telecom sector. Officials also expect that increased competition will lead to improved services for consumers.

Telecommunications

Kazakhstan’s Telecommunications Market Set to Slow in Coming Years

Kazakhstan’s telecommunications market is projected to experience a slowdown in the coming years, with average annual growth expected to hover around 6% for 2025-2027, nearly half the rate seen over the past two years. According to a joint study by Russian firm Nexign and the TelecomDaily agency, the sector grew by 11% in 2024, reaching $2.4 billion, the highest figure in three years. However, analysts attribute this recent surge not to organic market expansion, but to a sharp rise in communication tariffs, which increased by an average of 20%. The price hikes were largely driven by infrastructure modernization costs, the rollout of 5G networks, and increased mobile data usage. Looking ahead, sector growth is expected to be fueled by expanding the customer base, rising service consumption, and the development of digital offerings. Mobile communications accounted for 17% of telecom revenues in 2024, while internet access comprised a dominant 53%. In the past two years, mobile data consumption in Kazakhstan has doubled, placing the country among the global top ten for mobile internet usage per capita. As of March 2025, Kazakhstan had 26 million active SIM cards, more than the total population of approximately 20 million, indicating widespread use of multiple connections. Over 18 million people now have access to mobile internet, and another 3.2 million are connected to fixed broadband. The only segment in decline is fixed-line telephony, which saw a 10% drop in subscribers over the past year, falling to 2.3 million. The study notes that telecom operators will concentrate on expanding 5G coverage, enhancing service quality, and deploying fixed wireless access (FWA) technologies, seen as a more affordable alternative to fiber-optic infrastructure in rural areas. Kazakhstan is also advancing in satellite communications. In 2024, 750 rural schools were connected to the internet via Starlink, while OneWeb launched a ground control center in the country. The Times of Central Asia previously reported that Starlink’s commercial rollout in Kazakhstan is scheduled for the third quarter of 2025. The sector could also benefit from the integration of artificial intelligence in public services and various industries, offering potential new avenues for growth. Nonetheless, key challenges remain for the 2025-2027 period. These include the high costs of extending network coverage to remote areas, escalating prices for imported telecom equipment amid ongoing geopolitical tensions, and intensifying competition among major players. The primary operators in Kazakhstan’s telecom market include Kazakhtelecom JSC (and its subsidiary Kcell JSC), Beeline Kazakhstan (Kar-Tel LLP), Tele2/Altel (Mobile Telecom Service LLP), Transtelecom JSC, Alma TV (AlmaTel Kazakhstan JSC), and Jusan Mobile JSC (KazTransCom).

internet access

Starlink Set to Launch Internet Services Nationwide in Kazakhstan

Starlink, a subsidiary of Elon Musk’s SpaceX, will officially begin offering satellite internet services in Kazakhstan in the third quarter of 2025. The Ministry of Digital Development, Innovation, and Aerospace Industry of the Republic of Kazakhstan announced that an agreement has been signed with Starlink, ensuring compliance with national laws on information security and telecommunications. Expanding Internet Access to Remote Areas With this agreement, Kazakhstani users can now legally purchase and connect Starlink satellite terminals. Until now, the service had operated only in pilot mode, providing internet access exclusively to schools. “Starlink was not previously available to the public. Now, after reaching this agreement, the company has committed to fully comply with our legislation on information security and communications,” said Digital Development Minister Jaslan Madiev. The initiative is part of President Kassym-Jomart Tokayev’s directive under the national project Accessible Internet, which aims to close the digital divide. The project focuses on underserved areas, such as mountain villages, remote pastures, schools, and healthcare facilities, where laying fiber-optic infrastructure is logistically or economically impractical. Starlink’s technology uses a constellation of low-Earth orbit satellites, positioned approximately 550 kilometers above the Earth, to deliver high-speed broadband with low latency, even in rural and hard-to-reach locations. Background: A Long Road to Starlink Kazakhstan’s engagement with Starlink began in 2023 when the government, frustrated by the lack of progress from domestic telecom operators, initiated direct negotiations with SpaceX. Then-Minister Bagdat Musin announced a partnership to provide internet connectivity to 2,000 rural schools.. “Lauren Dreyer and I informed the President that in schools where students only receive 4 megabits per second through outdated satellite dishes, we would bridge the gap within six months. Lauren Dreyer, Vice President of SpaceX and Elon Musk’s deputy, confirmed Starlink’s commitment,” Musin said at the Digital Bridge forum. By April 2024, 447 rural schools were connected via Starlink. By July, that number had risen to 1,729. Attempted Ban and Backlash Despite the rollout’s success, in December 2024, the Ministry of Digital Development, Innovation and Aerospace Industry (MDDIAI) proposed banning Starlink and similar services. Citing Article 23 of the National Security Law, the ministry argued that Kazakhstan should prohibit telecommunications networks operated from outside the country. The draft regulation targeted four companies, Inmarsat, Iridium, Thuraya, and Starlink, and was published for public comment on the Open Regulations website. It immediately drew widespread criticism. In response to the backlash, the proposal was withdrawn for revision.

Telecommunications

Kazakhstan to Curb SIM Card Issuance Amid Rising Digital Fraud

Kazakhstan is considering new restrictions on the number of SIM cards individuals and legal entities can possess, in a bid to combat growing digital fraud. The proposal was announced by First Deputy Prosecutor General Timur Tashimbayev during a parliamentary session where the corresponding bill is under discussion. Targeting Scams Through Regulation The draft legislation proposes a cap, either five or ten SIM cards per individual, as well as the introduction of video verification during registration, mirroring procedures used in the financial sector. “Unfortunately, anyone can currently purchase SIM cards with virtually no oversight. They’re sold in stores, handed out during promotions, and it’s nearly impossible to track who is using them and for what purpose,” Tashimbayev said. In collaboration with mobile operators, the Prosecutor General’s Office has also developed methods to detect so-called SIM boxes, devices used to mask international internet calls as local traffic. In the past year, law enforcement seized 78 such devices and over 50,000 SIM cards connected to illegal operations. Data and Legislative Developments Since 2019, Kazakhstan has mandated registration of mobile devices through a combination of IMEI number, SIM card, and the subscriber’s Individual Identification Number (IIN), creating a digital footprint for each user. Despite this, new forms of fraud continue to emerge. In 2023, discussions began around biometric identification for remote telecom services. The plan would require users to provide facial recognition data when registering SIM cards, a move aimed at deterring the use of fake identities. Reclaiming the Numbering Plan In October 2024, Vice Minister of Digital Development Askhat Orazbek announced plans to return control over the country’s numbering plan to the state. Under the proposal, new numbers would be issued via the eGov portal and its mobile app. The initiative also includes differentiating SIM cards by purpose. While private users will face strict limits, legal entities will be required to justify the need for each card issued. “We will cap the number of SIM cards per person. Legal entities issuing them on a large scale must provide documentation justifying their use,” Orazbek stated. Universal SIM Cards on the Horizon Alongside restrictions, Kazakhstan is considering the rollout of universal SIM cards. Enabled by a draft law on virtual telecom operators, these cards would be compatible with the nearest base stations of any network provider, thanks to shared infrastructure access. Adapting to New Digital Threats With cyber fraud becoming increasingly sophisticated, Kazakhstan is taking a multi-pronged approach to enhance digital security. The proposed limits on SIM card ownership, enhanced registration protocols, and the development of virtual operators are central to this evolving strategy to combat telecom-related crime.