Increasing Broadband Internet Penetration
In the OIC Member Countries
137
competitiveness of sectors of the economy, while increasing connectivity of the rural
population are the main objectives of this program.
V.3.1. Demand for Broadband Services
Fixed and mobile broadband usage ratesThe adoption of broadband services in Kazakhstan is a fairly recent phenomenon. The
diffusion of fixed broadband begun in 2003. The initial rate of growth was modest until 2006,
with adoption increasing at a rapid pace thereafter from 2007 to 2015. As table 74 indicates, as
of year-end 2015 50% of Kazakh households have already adopted fixed broadband services.
Table 74: Kazakhstan: Fixed broadband lines (2003-2015)
2003 2005 2006 2007 2009 2011 2012 2013 2014 2015 Lines (‘000) 1.0 3.0 30.0 270,.0 577.3 1,193.4 1,637.3 1,958.8 2,148 2,107
Percent household 0.03 0.08 0.79 6.68 14.07 28.54 38.73 45.86 49.79 50.23
Sources: International Telecommunications Union; Just Smart Solutions LLP; Telecom Advisory Services analysisWith 50.23% fixed broadband adoption, Kazakhstan represents the country with highest fixed
broadband adoption relative to other OIC Central Asian member states: Kyrgyzstan (15.56%),
Tajikistan (0.40%), Turkmenistan (0.31%), and Uzbekistan (19.42%).
On the other hand, after launching in 2010 with the initial deployment of 3G networks, mobile
broadband adoption reached 12.5 million connections (or 70.3% of the population) by 4Q2016
(see table 75).
Table 75: Kazakhstan: Mobile broadband subscriptions (2010-2016)
2010 2011 2012 2013 2014 2015 2016 CAGR Connections 3,700,000 6,225,000 6,875,600 9,406,900 9,863,700 10,056,700 12,495,374 22%
Percent
Population 23.24 38.67 42.26 57.22 59.40 59.97 70.3 21
Sources: GSMA Intelligence; International Telecommunications Union; Telecom Advisory Services analysisAs table 75 indicates, mobile broadband total connections have increased at a 22% compound
annual growth rate since 2010. At 70.3% of connections penetration, Kazakhstan again has the
highest mobile broadband adoption relative to other OIC Central Asian countries: Kyrgyzstan
(68.48%), Tajikistan (41.46%), Turkmenistan (54.25%), and Uzbekistan (32.56%).
Contrary to what is observed in other countries regarding fixed-mobile broadband
substitution, the comparative analysis of both adoption trends indicates that the launch of
mobile broadband services has not affected the diffusion rate of fixed broadband in a
significant fashion. This could indicate that, rather than fixed-mobile substitution, both
technologies might be complementary (see figure 39).