Telecommunications - The Times Of Central Asia

Viewing results 1 - 6 of 13

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.

Telecommunications

Kazakhstan to Crack Down on “Gray” Smartphones

Starting March 24, 2025, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry will require telecom operators to verify the IMEI codes of smartphones and disconnect illegally purchased devices. According to ministry officials, the new regulation will apply only to phones purchased after March 24, 2025. Under the new system, all smartphones in Kazakhstan will be categorized into three lists based on their IMEI codes: White List: Legally purchased smartphones. Gray List: Devices with suspicious IMEI codes, such as duplicates. Owners will have 30 days to confirm their device's legitimacy. Black List: Stolen or counterfeit phones, which will be blocked from network access. “The goal of these new regulations is to combat the circulation of illegal devices,” said Dias Tolegenov, head of the Monitoring and Development of Wireless Projects Department at the ministry’s Telecommunications Committee. Phones imported before March 24, 2025, will not be affected by the new rules. Buyers can already check a device’s IMEI code on a dedicated government portal to avoid purchasing illegal or counterfeit smartphones. Azamat Seriktaev, another ministry representative, noted that blocking stolen phones through IMEI registration will help reduce mobile device theft. Meanwhile, the regulations are expected to curb the flow of illegally imported or fraudulently registered devices. According to Mazhilis deputy Ekaterina Smyshlyaeva, 64% of mobile devices in Kazakhstan’s market are imported through illegal or “gray” schemes: “In 2024, the state lost nearly 100 billion tenge (approximately $196 million) in unpaid value-added tax (VAT) due to these illegal imports.” She outlined several common fraudulent practices, including: Customs Evasion: Phones are imported without proper customs clearance. Mislabeling: High-end smartphones are registered as budget models to reduce tax liabilities. IMEI Duplication: Fraudsters copy the IMEI numbers of legally imported devices and assign them to multiple smuggled phones - sometimes up to five or six per code. “Often, people check a new phone’s IMEI and find out that, according to the system, it was manufactured 10 years ago,” Smyshlyaeva noted. To further tighten control, Smyshlyaeva suggested: Integrating IMEI registration with customs data to detect fraudulent imports. Automatically cross-checking IMEI numbers with the Customs Register of Intellectual Property Objects. Limiting personal imports to two smartphones per year per individual to prevent bulk smuggling. Separately, Mazhilis deputy and former Education Minister Askhat Aimagambetov have proposed restrictions on children’s use of smartphones in schools. As The Times of Central Asia previously reported, Kyrgyzstan is considering similar measures in schools and universities.

Digitalization

Kazakhstan to Build Fiber-Optic Highway for Internet Traffic

On February 6, Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry signed a memorandum of cooperation with Freedom Telecom Holding Ltd. to construct a fiber-optic highway and data centers for the transit and storage of international internet traffic. According to the ministry, the West-East national highway will significantly expand data transmission capacity and position Kazakhstan as a key hub for international internet traffic transit. The project aims to enhance connection speeds, improve data transfer efficiency, and establish an alternative route for internet traffic between Europe and East Asia. The hyper-highway is scheduled for completion in 2026. It is expected to attract major international clients, including IT firms, telecommunications companies, and financial institutions seeking fast and secure data transit. Kazakhstan views the hyper-highway and data center initiative as a strategic step toward strengthening its digital infrastructure. The project will boost Kazakhstan’s role in global internet traffic transit while establishing a robust and secure data storage network. The development will be financed through private investment. Freedom Telecom, a subsidiary of Freedom Holding Corp. (Kazakhstan), currently provides broadband internet access and open Wi-Fi in major cities across the country.

Telecommunications

Kazakhstan Plans to Ban Starlink and Other Satellite Communication Systems Face Backlash

Kazakhstan is considering a ban on the import of Starlink and other satellite communication devices, a move that has sparked opposition from experts and the public. In December 2024, authorities proposed a draft regulation prohibiting the import of satellite communication equipment from major manufacturers, including Thuraya, Iridium, Inmarsat, and Starlink. The proposal quickly ignited public debate on the Open ABO portal, with most commentators opposing the measure. Following a wave of criticism, the draft was sent for revision. National Security Concerns The ban would apply to satellite phones and terminals commonly used by emergency services, maritime fleets, and travelers in areas lacking traditional communication networks. The Ministry of Digital Development defends the restriction as a national security measure, citing Article 23 of Kazakhstan’s Law on National Security. The law prohibits the operation of foreign-controlled communication networks within the country. Authorities have suggested requiring local oversight of satellite devices. Industry and Legal Concerns Industry representatives and legal experts, however, have raised strong objections. Safety Risks: Alexey Korchagin, a representative of satellite communications partner ZHARYQ LLP, warns that restricting satellite communication could jeopardize lives. He argues that alternatives such as Eutelsat-OneWeb and Amazon Kuiper cannot fully replace Thuraya, Iridium, and Inmarsat, as their functionality differs. Unlike bulky VSAT terminals, mobile satellite phones are compact, easy to use, and designed for emergencies. Control Over Information: Lawyer Yelzhan Kabyshev sees the ban as part of a broader effort to control information flows. He points to previous cyber-control measures, including security certificates and data interception policies. He also questions the transparency of the decision-making process, particularly after the January 2022 unrest, which led to criminal cases against top National Security Committee officials. A Growing Black Market: Experts argue that the ban will not eliminate security risks, as the devices could still be smuggled into the country. Korchagin warns that such restrictions could fuel the "gray" market, making it harder to regulate and potentially increasing security threats. Alternative Solutions Instead of an outright ban, experts recommend cooperation with satellite operators to ensure regulatory oversight without compromising essential communication services. Meanwhile, Kazakhstan is working to expand internet access in remote areas. In 2024, a pilot project connected nearly 2,000 rural schools to Starlink satellite internet. The Ministry of Digital Economy has stated that the ban will not affect these connections, though the long-term future of the project after 2026 remains uncertain.