Recently published research from Business Monitor International, "Kazakhstan and Central Asia Telecommunications Report Q1 2013", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 03/05/2013 -- BMI View: Telecoms markets across Central Asia have evolved rapidly in recent years and in 2012 had high levels of penetration in mobile services as well as rapidly growing demand for wireless data services. Growth of wireless data demand has driven investment in network infrastructure, with 3G and 4G services available in the majority of urban areas across the region, with rural rollout also under way. In contrast to the bright outlook in terms of demand and reach of services, political risk has continued to undermine this positive outlook. Operators are exposed to significant uncertainty in terms of the regulation of the sector and wider government intervention, as evidenced by recent events in Turkmenistan and Uzbekistan.
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- MTS' main rivals in Uzbekistan, VimpelCom-backed Unitel and TeliaSonera-backed Coscom, have absorbed a large number of subscribers who were left without services when Uzdunrobita's licences were revoked. Unitel reported net additions of 2.198mn in Q312, compared to 2.209mn for 2011 and H112. Coscom reported net additions of 1.782mn in Q312, compared to 935,000 for 2011 and H112.
Key Trends And Developments:
In November 2012 the Tashkent Court of Appeals reversed the September 2012 decision to seize MTS' Uzbek assets. However, the issue of licensing remains unresolved - leaving former subscribers forced to find another provider. Further, four Uzdunrobita managers will still have to serve probationary sentences and MTS will still have to pay a US$600mn fine over the next eight months. Although the court's ruling represents progress for MTS, BMI believes that the remaining obstacles to it re-entering the market means that the possibility remains some way off.
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