Regulatory best practices for mobile network development in the Republic of Kazakhstan

The development of cellular networks in the Republic of Kazakhstan has ensured widespread access to the Internet and a high level of penetration of various digital services. In the current decade, cellular operators are working to expand coverage and increase capacity, and preparations are underway for the launch of 5G networks, followed by the introduction of industry-specific services for the digitalisation of various sectors of the economy.

However, over the past decade, both the economy as a whole and the telecommunications sector in particular have changed significantly. Many operators’ traditional value-added services have been supplanted by IT-services, while the constant growth in mobile traffic volumes has not been accompanied by a significant increase in revenue. The ongoing investment cycle in today’s 4G networks, and the upcoming investments in 5G in the coming years, coincides with the low margins and predominantly excessive regulation of the industry inherited from the 2G/3G era.

To further incentivise the development of mobile networks in the Republic of Kazakhstan, it is necessary to establish a favourable regulatory framework, as well as measures to attract investments in network deployment. This will require a review and simplification of a number of industry regulatory approaches used in the Republic of Kazakhstan, including spectrum assignments, administrative procedures liberalisation and the introduction of mechanisms to spur investment in the digital infrastructure.