Research and Markets: Tajikistan - Telecoms, Mobile and Internet - Despite Global Financial Crisis, Mobile Market Still Growing by 20% a Year

DUBLIN--()--Research and Markets (http://www.researchandmarkets.com/research/43ee47/tajikistan_telec) has announced the addition of the "Tajikistan - Telecoms, Mobile and Internet" report to their offering.

Global financial crisis hit Tajikistan hard, but mobile market still growing by 20% a year

Tajikistan's telecommunications infrastructure was arguably the least developed of all the former Soviet republics. With a telecom network that was near total collapse, the government has had the daunting task of bringing it up to modern standards. Apart from its outmoded and poorly maintained infrastructure, a succession of natural disasters causing damage to plant and equipment undermined the integrity of the network.

During the mid-1990s the government announced its National Program of Communications Development, which was aimed particularly at the modernisation and development of communications throughout the country. Specifically it included plans to privatise communications, broadcasting and television to attract foreign investors, although the state was expected to remain a major shareholder.

The ambitious plan began to be implemented within the context of a traditional regulatory and operating structure. The Ministry of Communications (MOC) was made responsible for providing all public communications, including local, national and international telephone services, as well as postal services, TV and radio broadcasting. As part of a long-term program, the MOC aimed to build a national communications system to world standards. The government also laid out plans to ultimately transfer all responsibilities from the MOC to a new independent regulatory authority which duly happened.

The government indicated there would be a transition period leading up to privatisation of Tajiktelecom in 2004 and liberalisation of the local and international long-distance switched telephony sector in 2006. As part of the privatisation strategy, a substantial number of private operators were allowed to enter the telecom market after 1996, notably in the mobile and Internet sectors. In fact, telecommunications has become one of the most dynamically developing sectors within the Tajikistan economy. Although still inadequate, its contribution to the county's GDP has been actively growing, as new and diversified technologies were quickly becoming the norm. The privatisation of Tajiktelecom has, however, been subject to a series of delays. In the meantime, Tajikistan began the trial introduction of a number of advanced wireless networks, including 3G and NGNs, in 2005.

The market continued to be dominated by the state-owned incumbent operator, Tajiktelecom, which has been providing local, long-distance and international telephone services throughout the country. In addition, more than six mobile operators and around 12 ISPs had been licensed. The new regulatory authority, the Communications Regulatory Agency (CRA), was created in 2005. Despite the almost exponential growth in Tajikistan's mobile sector over a number of years, overall the telecom market had remained rudimentary. With one of the lowest fixed-line and mobile penetrations in the region by early 2006, total teledensity was estimated at around 10%. By early 2010, however, the total teledensity had surged to almost 70%. Of course, this was on the back of the booming mobile market where penetration was almost at the 65% mark. In the meantime, fixed-line numbers had remained virtually static over this period and penetration stood at just under 5% by that stage.

Market highlights:

  • By early 2010 mobiles in Tajikistan had reached 63% penetration, with subscriber growth running at an annual rate of around 25% and overall subscriber numbers having increased sixfold in just three years;
  • The growth rate peaked in 2007 when Tajikistan's mobile subscriber expanded at an annual rate of almost 200%;
  • Four mobile operators had been granted 3G licences and subsequently launched networks which were steadily adding subscribers;
  • Fixed-line penetration in Tajikistan has almost reached 5%; however, the fixed-line market remained sluggish and compared with the mobile market there is relatively little growth at the moment;
  • Although up to date official figures were not available, by 2010 the conversion of the country's fixed network from analogue appeared to have achieved a digital level in excess of 90% and the country was well on the way to achieving its 100% target;
  • Tajikistan's Internet usage has been expanding quickly, with reports suggesting Internet user penetration of about 10% by 2009;
  • However, the actual number of Internet subscribers remained relatively low (estimated penetration of around 0.2% in 2009);
  • Broadband Internet access was virtually non-existent.Tajikistan - key telecom parameters - 2009 - 2010

Fixed-line services:

  • Total number of subscribers1320,000350,000
  • Annual growth10%9%
  • Fixed-line penetration (population)4.5%4.9%

Internet:

  • Total number of subscribers115,00020,000
  • Annual growth25%30%
  • Internet subscriber penetration (population)0.2%0.3%

Mobile services:

  • Total number of subscribers (million)3.24.5
  • Annual growth60%42%
  • Mobile penetration (population)46%63%

Key Topics Covered:

1. Executive summary

2. Key statistics

3. Telecommunications market

4. Regulatory environment

5. Fixed network operator

6. Telecommunications infrastructure

7. Internet market

8. Mobile communications

Companies mentioned:

  • World Trade Organization (WTO)
  • Tajiktelecom
  • Babilon Mobile
  • Indigo Tajikistan
  • Somoncom
  • Tacom
  • TK Mobile
  • TT Mobile

For more information visit http://www.researchandmarkets.com/research/43ee47/tajikistan_telec

Contacts

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Contacts

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716