Increasing Broadband Internet Penetration
In the OIC Member Countries
141
2015.87. This index reflects, in the aggregate, the total cost of ownership of telecommunications
services (including taxes) as a function of income. When compared with the rest of Asian
countries, Kazakhstan is at the high-end of the affordability range (see figure 41).
Figure 41: Asia: Telecommunications Affordability Index (2014)
Source: Telecom Advisory Services analysisThe position of Kazakhstan among its Asian peers would indicate that pricing of
telecommunications services might not represent a barrier to adoption. In fact, the most
economic fixed broadband product offered in the Kazakh market represents only 1.40% of the
average monthly income of US$ 634 88 as of November 2014. This percentage is well within the
parameter established by the UNESCO/ITU Broadband Commission of 5% of monthly income.
If pricing is not a significant barrier to broadband adoption, it is probable that digital literacy
and cultural relevance become more prominent in explaining the demand gap. With a literacy
rate at 99.7 %, however, it is doubtful that digital literacy represents an important barrier89.
Furthermore, Kazakhstan’s multi-ethnic demographics and the prevalence of the Russian
language from the Soviet era do not have significant impact on broadband access: all public
institutions are required to provide two language versions on their website, and many private
sector actors follow this trend, although currently there is much more domestic content
available in Russian than in the Kazakh language.
87 The digital affordability index is a composite index calculated on the basis of six indicators: Residential fixed line tariff
adjusted for GDP per capita; Residential fixed line connection fee adjusted for GDP per capita; Mobile cellular prepaid tariff
adjusted for GDP/capita; Mobile cellular prepaid connection fee adjusted for GDP per capita; fixed broadband Internet
access cost adjusted for GDP per capita; and mobile broadband Internet acces per capita (see Katz
and Koutroumpis, 2013).
88 Mojazarplata, “Average Monthly Wages,” [in Russian] accessed March 5, 2015, .
89 Official statistics indicate that, as of 2012, only 4.5%of the population lacked Agency of Statistics of
the Republic of Kazakhstan).
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Qatar%Kuwait%Korea%(Rep.%of)%Kazakhstan%Belarus%Saudi%Arabia%Iran%(Islamic%Rep.%of)%United%Arab%Emirates%Taiwan,%China%Oman%
Brunei%Darussalam%
Russia%Azerbaijan%Barbados%Bhutan%Tunisia%Mongolia%Turkey%Lebanon%China%India%Ukraine%Viet%Nam%Turkmenistan%Indonesia%Jordan%Sri%Lanka%Thailand%Pakistan%Bangladesh%Philippines%Uzbekistan%Yemen%Moldova%Lao%P.D.R.%Nepal%Iraq%Kyrgyzstan%TimorSLeste%Tajikistan%Afghanistan%Papua%New%Guinea%