Telecom and Communication
Brief market overview. Telecom & Communication market is dominated by the mobile operators. Uztelecom JSC is state owned company, with more than 15,000 employees, the largest national telecommunications operator. Uztelecom sets broadband standards in the domestic market and acts on behalf of government to distribute telecom and communication services within the country.
In the mobile market, there are 5 mobile operators, with two operators Beeline (owned by Russian operator Vimpelcom) and UCELL (TeliaSonera owned) owning more than 90% of market share. 23.26 million mobile subscribers according to the latest statistics. Country’s first commercial grade 4G LTE service was introduced by Beeline in 2014.
Open Joint-Stock Company “Uzbekiston Pochtasi” is the national post operator of Uzbekistan. 51% is owned by state and spread over all 12 regions with its regional central offices and sub branches.
As per fixed broadband market, there are 9.1 broadband subscribers per 100 people. Uztelecom JSC reduced tariffs from $156.24 to $67.63 per 1 Mbps over one year period, which resulted surge for the number ISPs. By the mid of 2017, number of ISPs reached 626, which is 500 more than the previous year.
Mobile operators in Uzbekistan:
- LLC "UNITEL", acting under the trademark - Beeline
- JV LLC "COSCOM", acting under the brand name - UCell
- JV LLC "Universal Mobile Systems" - acting under the brand name - MTS
- The branch of "Uzbektelecom Mobile" "Uzbektelecom" (Uzmobile)
- The operator of CDMA 2000 1x 450 - a branch of "Uzbektelecom Mobile" "Uzbektelecom" (Uzmobile)
- The operator of CDMA 2000 1x "Rubison Wireless Communication»", trademark Perfectum Mobile
Infrastructure. Overall telecommunication infrastructure is relatively well developed comparing to neighboring CIS countries. As of 2017, more than 18,000 mobile communications stations installed throughout the country. To increase 4G coverage, it is expected to have more than 450 mobile 4G stations throughout the country in near future. Telecom networks in the capital city and regional centers are fully transformed to digital but rural areas more than 50%.
On the solid infrastructure foundation, the government is implementing strategic upgrades on annual basis with the help of Multilateral Development Banks and governments other countries. We do believe that Uzbekistan evolves into regional broadband highway and hub for its neighboring countries.
As far we witness, Telegram and VK is popular in Uzbekistan for social media and communication as per application side. Within the mobile operation systems in the smartphones, android 45%, iOS 9&, JVM 4%, windows 36% and others 6%.
Opportunities: Even though mobile services penetration is 72%, broadband subscribers relatively low. If the country eases up TV and Radio licenses to private sector, there is an underdeveloped market for triple play services.
We do expect mobile software applications and business solutions will grow rapidly in next 5 years. Market already has star applications such as “MyTaxi” as Uber version and “Click” and “Payme” for financial transactions. Subscription based media content businesses has not yet started in the country. We believe media streaming over mobile networks has potential growth in the future.