2005 Asia - Telecoms, Mobile and Broadband in Central Asia and Maldives

2005 Asia - Telecoms, Mobile and Broadband in Central Asia and Maldives

Executive Summary

This report looks at twelve of the developing countries of Asia.

Armenia’s telecommunications sector is small but growing. The level of investment in infrastructure and new services is on the increase, as the country builds on almost 600,000 fixed lines in service, together with 250,000 mobile subscribers, for a population of around 4 million people. Total investment in the sector was expected to reach US$64 million in 2005. Major structural issues still need to be addressed before the telecommunications sector can make real progress. One of the concerns is that Armenia’s national telecom provider, ArmenTel, has a monopoly on all telecommunications services in the country until 2013.

Azerbaijan continues to work at overcoming numerous problems as it moves forward in its effort to develop the telecommunications sector. Poor quality infrastructure has been an ongoing problem. Less than half the telephone lines in the country are digital. The monopoly held by the Ministry of Communications, among other things, results in the high cost of satellite connections. As well as being a commercial operator through its role in AzTelecom, the ministry is the policy-maker and regulator for telecoms in Azerbaijan. The country’s significant dependence on international funding also makes it difficult for any long-range planning in the development of the sector.

Bhutan, a country that somehow preferred to remain isolated from the world, has very recently started to improve its telecommunications capability. To do so it has had to overcome the country’s mountainous landscape. Whilst the country had a basic connection to the outside world as early as 1974, with the introduction of trunk calls between Bhutan and India, it was not until 1999 that television, satellite dishes and Internet services started to appear. The tiny country proceeded to invest heavily – to the tune of around US$27 million - in telecommunications infrastructure between 1996 and 2002 to provide the country with a modern fixed line network. In late 2003, a mobile service was launched by Bhutan Telecom.

Georgia, continues to be held back in its economic development by poor telecommunications infrastructure. The network remains heavily analogue with only a minor proportion of digital lines and teledensity is particularly low in rural areas. A significant injection of capital is desperately needed if the country’s telecommunications sector is to stabilise and expand. The overall economy has continued to struggle, despite increased commercial activity and some stronger economic growth figures. A number of political crises have added to the uncertainty in the country, at least in the short term.

Kazakhstan, with a fixed-line penetration of around 16%, has a reasonably strong telecom sector by regional standards. This is despite the generally poor state of much of the country’s infrastructure - only about 55% of the national network is digital. National operator, Kazakhtelecom, has launched a program to modernise the country’s telecommunications system. There is a high unsatisfied demand for telephone services in the country. This has seen mobile telephone services boom, with annual subscriber growth running at 90% coming into 2005. The mobile market has jumped from 67,000 subscribers in 1999 to 2.8 million subscribers by the end of 2004. And at the same time, although Internet penetration is low (2%) at present, there is growing interest in going online.

Kyrgyzstan, having followed a disciplined program of economic reform and moved steadily into a market economy, has achieved high growth in GDP in recent years, as well exhibiting other measures of a healthy and stable economy. As a consequence of this, the country has been attracting strong foreign investment and considerable economic and technical assistance of various types. The resulting benefits have flowed to the telecoms sector, which is being restructured in the final phase of Kyrgyzstan’s wider privatisation program. The country still has a teledensity of only 8%, however, and much work remains to be done in sectoral reform and infrastructure building.

The Maldives boasts an efficient, up to date telecommunications system. Dhiraagu, the country’s monopoly telco, has worked hard to ensure that there is now full telephone service coverage of the archipelago. As well operating the fixed-line network, the company also operates a mobile service and is an Internet Service Provider (ISP). Dhiraagu’s monopoly runs out in 2008, but the government has signalled that it is keen to open up the market earlier than that. This is expected to happen progressively. The licensing of a second ISP in 2002 showed that the government was already moving on in this direction. In late 2004, a second mobile licence was also issued to Wataniya Telecom, as the government took the first major step towards removing the Dhiraagu monopoly.

Mongolia is committed to developing a more efficient telecommunications network as an integral part of it push towards a market economy. Despite the country having confirmed this commitment by implementing reforms to encourage growth in the telecom industry, the sector still needs further expansion if is to help boost economic growth. An explosion in the mobile market has seen a huge jump the number of subscribers. By early 2005, there were 400,000 mobile subscribers in the country. The mobile penetration had reached 15%, up from less than 2% at the end of 2000.

Nepal’s telecommunication services have been growing steadily over the last decade. Positive regulatory changes in the telecom sector have been implemented, including the incumbent telco losing its monopoly status in the market. However, the supply of telephone service has not been able to keep up with a growing demand. An estimated 50% of demand for telephones remains unmet. The biggest challenge has been in providing rural services. This area has been neglected as the level of investment over recent years fell well short of what was required for the rural sector. More than 60% of telephone services are concentrated in the capital Kathmandu. At the same time, more than 50% of villages still have no telephone access at all. A further complication in the development of the sector has been the widespread insurgency by Maoists rebels.

Tajikistan, another of the nations that emerged from the former Soviet Union, has a telecommunications network that is arguably the least developed of all those countries. The network is tiny, providing service to a subscriber base that represents a teledensity of less than 4% coming into 2005. And, of particular concern, less than 10% of the Tajikistan network is digital. However, having inherited a telecommunications system that was near total collapse, the government has started the task of bringing it up to modern standards The poor state of the country’s telecommunications services has certainly had a negative impact on business and government. Other factors inhibiting development of telecommunications in Tajikistan are the scarcity of investment capital and an acute shortage of skilled personnel. One positive sign amongst the gloom is the opening up of the mobile telephone market.

Turkmenistan is yet another of the nations that emerged from the former Soviet Union with a relatively underdeveloped telecommunications sector. Unfortunately the country has not been able to build up its telecom infrastructure to any degree. Since the mid-1990s, Turkmenistan has been stagnating with around 8% fixed-line teledensity and has not been able to add to what should have been a reasonably good base. At the same time its infrastructure is predominantly analogue and the program to upgrade existing equipment to digital has also been lagging. Regulatory reform is much needed, the Ministry of Communications continuing to play to great a role in the sector. In the wider economy, the country has suffered from poor progress in developing the private sector and continuing centralised state control over most economic activities. These factors have impacted negatively on development of telecommunication services. Turkmen Telecom provides fixed-line services and Barash Communications Technologies Inc is the country’s mobile operator.

Uzbekistan, has been struggling to bring its telecommunications system up to the standard found in developed countries. With less than 2 million telephones at the end of 2004 for a population of almost 26 million, the country suffers from outdated and poorly maintained analogue equipment. The network is only 35% digital. In 1996, in what was seen as a landmark decision, the government started inviting foreign telecom companies to invest in Uzbekistan in their own right. This was followed by the creation in 2000 of Uzbektelekom, a holding company charged with operating the national telecommunications network. Whilst this was obviously the first step towards privatising the sector, the government has been moving slowly along this path.

1. EXECUTIVE SUMMARY
2. ARMENIA
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Market overview
2.2.2 Armenia Telephone Company (Armentel)
2.3 Regulatory environment
2.3.1 Telecommunications Law 1998
2.3.2 Unconstitutional monopoly
2.4 Telecommunications infrastructure
2.4.1 Local and national
2.4.2 International
2.5 Data market
2.5.1 ArmPac
2.6 Internet market
2.6.1 Market overview
2.6.2 ISP market
2.7 Mobile communications
2.7.1 Overview
2.8 Broadcasting market
2.8.1 Armenia TV
3. AZERBAIJAN
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview
3.3 Regulatory environment
3.3.1 National Communication Technologies Strategy
3.3.2 World Bank project
3.4 Fixed network operators in Azerbaijan
3.4.1 AzEuroTel
3.4.2 Terracom Inc (Fire Telecom) – EuroAsiaCom
3.5 Telecommunications infrastructure
3.5.1 National
3.5.2 International
3.6 Internet market
3.6.1 Market overview
3.6.2 ISP market
3.7 Broadband market
3.8 Mobile communications
3.8.1 Market overview
3.8.2 Major mobile operators
3.8.3 Trunk Mobile Radio (TMR)
3.9 Broadcasting market
4. BHUTAN
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview
4.3 Regulatory environment
4.3.1 Bhutan Telecommunications Act 1999
4.4 Fixed network operator in Bhutan
4.4.1 Bhutan Telecom
4.5 Telecommunications infrastructure
4.5.1 National
4.5.2 International
4.6 Internet market
4.6.1 Overview of the Internet in Bhutan
4.6.2 ISP market
4.7 Mobile communications
4.7.1 Overview
4.8 Broadcasting market
5. GEORGIA
5.1 Key statistics
5.2 Telecommunications market
5.2.1 Overview
5.2.2 Political crisis
5.3 Regulatory environment
5.3.1 The National Regulatory Commission
5.3.2 Privatisation
5.4 Fixed network operators in Georgia
5.4.1 Sakartvelos Telekomi
5.4.2 Sakartvelos Elektrokavshiri
5.4.3 Egrisi
5.5 Telecommunications infrastructure
5.5.1 National telecom network
5.5.2 International infrastructure
5.6 Fixed network voice services
5.6.1 Local calls
5.6.2 National long-distance and international calls
5.7 Data market
5.8 Internet market
5.8.1 Market overview
5.8.2 ISP market
5.9 Mobile communications
5.9.1 Market overview
5.9.2 Major mobile operators
5.10 Broadcasting market
5.10.1 Overview
5.10.2 Television broadcasters
6. KAZAKHSTAN
6.1 Key statistics
6.2 Telecommunications market
6.2.1 Overview
6.3 Regulatory environment
6.3.1 The regulator
6.3.2 Liberalisation
6.3.3 Privatisation
6.4 Fixed network operators in Kazakhstan
6.4.1 Kazakhtelecom
6.4.2 Kazintel
6.4.3 Astel
6.4.4 KazInformTelecom (KIT)
6.4.5 Jarykh Ltd
6.4.6 SA Telecom
6.5 Telecommunications infrastructure
6.5.1 National
6.5.2 International
6.6 Data market
6.6.1 Data infrastructure
6.7 Internet market
6.7.1 Market overview
6.7.2 Internet data centres (IDCs)
6.8 Mobile communications
6.8.1 Market overview
6.8.2 Major mobile operators
6.8.3 Paging
6.8.4 Trunk Mobile Radio (TMR)
6.9 Broadcasting market
6.9.1 Overview
7. KYRGYZSTAN
7.1 Key statistics
7.2 Telecommunications market
7.2.1 Overview
7.2.2 Government projects
7.3 Regulatory environment
7.3.1 National Communications Agency
7.3.2 Privatisation
7.4 Fixed network operator in Kyrgyzstan
7.4.1 Kyrgyz Telecom
7.5 Telecommunications infrastructure
7.5.1 National
7.5.2 International
7.6 Internet market
7.6.1 Overview of the Internet in Kyrgyzstan
7.6.2 ISP market
7.7 Mobile communications
7.7.1 Market overview
7.7.2 Major mobile operators
7.8 Broadcasting market
7.8.1 Overview
7.8.2 Cable TV
8. MALDIVES
8.1 Key statistics
8.2 Telecommunications market
8.2.1 Overview
8.3 Regulatory environment
8.3.1 The regulator
8.3.2 Master Plan for Telecommunications
8.3.3 Liberalisation
8.3.4 Tariffs
8.4 Telecommunications infrastructure
8.4.1 Domestic
8.4.2 International
8.5 Fixed network voice services
8.6 Data market
8.7 Internet market
8.7.1 Overview market
8.7.2 Liberalisation
8.8 Mobile communications
8.8.1 Market overview
8.9 Broadcasting market
9. MONGOLIA
9.1 Key statistics
9.2 Telecommunications market
9.2.1 Overview
9.3 Regulatory environment
9.3.1 Regulatory background
9.3.2 Communications Regulatory Council
9.3.3 Competitive environment
9.3.4 Mongolian Information and Communications Vision 2010
9.4 Telecommunications infrastructure
9.4.1 National network
9.4.2 Rural services
9.4.3 Satellite networks
9.4.4 Future plans and programs
9.5 Fixed network voice services
9.5.1 Overview
9.5.2 Domestic services
9.5.3 International services
9.6 Data market
9.7 Internet market
9.7.1 Overview of the Internet in Mongolia
9.7.2 Mongolia Internet Exchange
9.7.3 ISP market
9.8 Broadband in Mongolia
9.8.1 ADSL pilot project
9.9 Mobile communications
9.9.1 Market overview
9.9.2 Major mobile operators
9.10 Broadcasting market
9.10.1 MRTV
10. NEPAL
10.1 Key statistics
10.2 Telecommunications market
10.2.1 Overview of Nepal’s telecom market
10.2.2 Nepal under emergency rule
10.3 Regulatory environment
10.3.1 Regulatory authority
10.3.2 Telecommunications Policy 1999
10.3.3 Telecommunications Policy 2004
10.3.4 Licensing
10.3.5 Telecom sector liberalisation in Nepal
10.3.6 Privatisation of NTC
10.3.7 Foreign assistance
10.3.8 Telecommunications Sector Reform Project
10.3.9 Information and Communications Technology Policy
10.4 Fixed network operator in Nepal
10.4.1 Nepal Telecommunications Corporation (NTC)
10.5 Telecommunications infrastructure
10.5.1 Overview
10.5.2 National and international infrastructure
10.6 Fixed network voice services
10.6.1 International
10.7 Data market
10.7.1 Data infrastructure
10.8 Internet market
10.8.1 Overview of the Internet in Nepal
10.8.2 Constraints on Internet growth
10.8.3 Top level domain name
10.8.4 ISP market
10.9 Content and e-services
10.9.1 E-commerce
10.9.2 E-communications
10.10 Mobile communications
10.10.1 Market overview
10.10.2 Satellite mobile
10.11 Broadcasting market
10.11.1 Free-to-air
10.11.2 Cable and Pay TV
11. TAJIKISTAN
11.1 Key statistics
11.2 Telecommunications market
11.2.1 Overview
11.2.2 Telecommunications development plans
11.3 Telecommunications infrastructure
11.3.1 National and international
11.4 Internet market
11.4.1 Overview of the Internet in Tajikistan
11.4.2 Public Internet access
11.5 Mobile communications
11.5.1 Market overview
11.5.2 Major mobile operators
11.6 Broadcasting market
11.6.1 Overview
12. TURKMENISTAN
12.1 Key statistics
12.2 Telecommunications market
12.2.1 Overview
12.2.2 Regulator
12.3 Telecommunications infrastructure
12.3.1 National and international
12.4 Internet market
12.4.1 Market overview
12.4.2 ISP market
12.5 Mobile communications
12.5.1 Barash Communications Technologies
12.5.2 Altyn Asyr
12.6 Broadcasting market
12.6.1 Overview
13. UZBEKISTAN
13.1 Key statistics
13.2 Telecommunications market
13.2.1 Overview
13.2.2 Uzbektelekom
13.2.3 Terracom Inc (Fire Telecom)
13.3 Regulatory environment
13.3.1 Ministry of Communications
13.3.2 Privatisation
13.4 Telecommunications infrastructure
13.4.1 Three phase renovation plan
13.4.2 Foreign investment in infrastructure
13.5 Internet market
13.5.1 Overview of the Internet in Uzbekistan
13.5.2 ISP market
13.6 Mobile communications
13.6.1 Overview
13.6.2 Major mobile operators
13.7 Broadcasting market
14. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Level of competition by market segment – 2004
Exhibit 2 – Overview of MobiCom’s WLL service
Exhibit 3 – Mobile operators in Tajikistan




Table 1 – Market penetration by service segment – December 2004
Table 2 – Country statistics Armenia – 2005
Table 3 – Telephone network statistics – 2004
Table 4 – Internet provider statistics – 2005
Table 5 – Internet user statistics – 2004
Table 6 – Mobile statistics – April 2005
Table 7 – National telecommunications authorities
Table 8 – Fixed lines in service and teledensity – 1991 - 2004
Table 9 – Internet users – 1994 - 2004
Table 10 – Internet host computers – 1995 - 2003
Table 11 – Mobile subscriber growth – 1996 - 2005
Table 12 – Key broadcasting statistics - 2004
Table 13 – Country statistics Azerbaijan – 2004
Table 14 – Telephone network statistics – 2004
Table 15 – Internet provider statistics – 2003
Table 16 – Internet user statistics – 2004
Table 17 – Mobile statistics – 2004
Table 18 – National telecommunications authorities
Table 19 – Fixed lines in service and teledensity – 1995 - 2004
Table 20 – Internet users – 1995 - 2004
Table 21 – Internet host computers – 1996 - 2003
Table 22 – Mobile subscribers by operator – 2004
Table 23 – Mobile subscriber growth – 1994 – 2004
Table 24 – Key broadcasting statistics* - 2003
Table 25 – Country statistics Bhutan – 2005
Table 26 – Telephone network statistics – 2004
Table 27 – Internet provider statistics – 2004
Table 28 – Internet user statistics – 2004
Table 29 – National telecommunications authorities
Table 30 – Fixed lines in service and teledensity – 1995 - 2004
Table 31 – Internet users and penetration – 1999 - 2004
Table 32 – Internet host computers – 1998 - 2003
Table 33 – Key broadcasting statistics* - 2003
Table 34 – Country statistics Georgia – 2005
Table 35 – Telephone network statistics – 2004
Table 36 – Internet provider statistics – 2004
Table 37 – Internet user statistics – 2004
Table 38 – Mobile statistics – 2004
Table 39 – National telecommunications authorities
Table 40 – Fixed lines in service and teledensity – 1995 - 2004
Table 41 – Internet user growth and penetration – 1996 - 2004
Table 42 – Internet host computers – 1995 - 2004
Table 43 – Mobile subscriber growth and penetration – 1995 - 2004
Table 44 – Mobile subscribers by operator – 2004
Table 45 – Key broadcasting statistics* - 2003
Table 46 – Country statistics Kazakhstan – 2005
Table 47 – Telephone network statistics – 2004
Table 48 – Internet provider statistics – 2004
Table 49 – Internet user statistics – 2004
Table 50 – Mobile statistics – 2004
Table 51 – National telecommunications authorities
Table 52 – Fixed lines in service and teledensity – 1995 - 2004
Table 53 – Internet users – 1996 - 2004
Table 54 – Internet host computers – 1994 - 2004
Table 55 – Mobile subscribers – 1996 - 2004
Table 56 – Mobile subscribers by operator – 2004
Table 57 – Key broadcasting statistics* - 2004
Table 58 – Country statistics Kyrgyzstan – 2005
Table 59 – Telephone network statistics – 2004
Table 60 – Internet provider statistics – 2004
Table 61 – Internet user statistics – 2004
Table 62 – Mobile statistics – 2004
Table 63 – National telecommunications authorities
Table 64 – Planned development of information technology capacity – 2000 - 2010
Table 65 – Fixed lines in serviceand teledensity – 1991 - 2004
Table 66 – Internet users – 1998 - 2004
Table 67 – Internet host computers – 1997 - 2003
Table 68 – Mobile subscriber growth and penetration – 1998 - 2004
Table 69 – Mobile subscribers by operator – September 2003
Table 70 – Key broadcasting statistics* - 2004
Table 71 – Country statistics Maldives – 2005
Table 72 – Telephone network statistics – 2004
Table 73 – Internet provider statistics – 2004
Table 74 – Internet user statistics – 2004
Table 75 – Broadband statistics – 2004
Table 76 – Mobile statistics – 2004
Table 77 – National telecommunications authorities
Table 78 – Fixed lines in service and teledensity – 1995 - 2004
Table 79 – Fixed-line subscribers – 2004
Table 80 – Internet users – 1996 - 2004
Table 81 – Internet host computers – 1996 - 2003
Table 82 – Internet access – 2004
Table 83 – Mobile subscriber growth – 1998 - 2004
Table 84 – Post-paid and prepaid – 2004
Table 85 – Key broadcasting statistics* - 2003
Table 86 – Country statistics Mongolia – 2005
Table 87 – Telephone network statistics – 2004
Table 88 – Internet provider statistics – 2004
Table 89 – Internet user statistics – 2004
Table 90 – Mobile statistics – 2004
Table 91 – National telecommunications authorities
Table 92 – Fixed lines in service and teledensity – 1994 - 2004
Table 93 – Internet users – 1996 - 2004
Table 94 – Internet host computers – 1996 - 2003
Table 95 – Internet subscribers – 1999 - 2004
Table 96 – Mobile subscribers and penetration – 1996 - 2004
Table 97 – Mobile subscribers by operator – 2004
Table 98 – Key broadcasting statistics* - 2004
Table 99 – Country statistics Nepal – 2005
Table 100 – Telephone network statistics – 2004
Table 101 – Internet provider statistics – 2004
Table 102 – Internet user statistics – 2004
Table 103 – Mobile statistics – 2004
Table 104 – National telecommunications authorities
Table 105 – Fixed-lines in service and teledensity – 1995 - 2004
Table 106 – Telephone demand forecasts – 2007; 2012; 2017
Table 107 – Internet users – 1997 - 2004
Table 108 – Internet hosts – 1995 - 2003
Table 109 – Mobile subscriber growth and penetration – 1999 - 2004
Table 110 – Key broadcasting statistics* - 2004
Table 111 – Country statistics Tajikistan – 2004
Table 112 – Telephone network statistics – 2004
Table 113 – Internet provider statistics – 2004
Table 114 – Internet user statistics – 2004
Table 115 – Mobile statistics – 2004
Table 116 – National telecommunications authorities
Table 117 – Fixed lines in service and teldensity – 1995 - 2004
Table 118 – Internet users – 1999 - 2004
Table 119 – Internet host computers – 1997 - 2003
Table 120 – Mobile subscribers – 1996 - 2004
Table 121 – Key broadcasting statistics* – 2003
Table 122 – Country statistics Turkmenistan – 2004
Table 123 – Telecom revenue and investment statistics – 2002
Table 124 – Telephone network statistics – 2002
Table 125 – Internet provider statistics – 2003
Table 126 – Internet user statistics – 2002
Table 127 – Mobile statistics – 2002
Table 128 – National telecommunications authorities
Table 129 – Fixed lines in service and teledensity – 1991 - 2002
Table 130 – Internet users – 1999 - 2002
Table 131 – Internet host computers – 1997 - 2003
Table 132 – Mobile subscriber growth and penetration – 1997 - 2002
Table 133 – Key broadcasting statistics - 2002
Table 134 – Country statistics Uzbekistan – 2005
Table 135 – Telephone network statistics – 2004
Table 136 – Internet provider statistics – 2004
Table 137 – Internet user statistics – 2004
Table 138 – Mobile statistics – 2004
Table 139 – National telecommunications authorities
Table 140 – Fixed lines in service and teledensity – 1991 - 2004
Table 141 – Internet users – 1999 - 2004
Table 142 – Internet host computers – 1996 - 2003
Table 143 –Mobile subscribers by operator – 2004
Table 144 –Mobile subscriber growth and penetration – 1995 - 2004
Table 145 – Uzdunrobita mobile subscribers – 1998 - 2004
Table 146 – Daewoo Unitel subscribers – 1998 - 2004
Table 147 – Uzmacom subscribers – 2000 - 2004
Table 148 – Key broadcasting statistics* - 2003