Increasing Broadband Internet Penetration
In the OIC Member Countries
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In addition to the two master plans reviewed above, among the most relevant legal initiatives
enacted by the Kazakh government that have so far had an impact on the development of
broadband, three are of special note:• Network unbundling: the owners of buildings and structures are now obligated to
lease the premises (area) to telecommunications operators on equal terms under an
agreement on deployment by operators of telecommunications equipment with a view
to providing telecommunications services.
• Sharing of passive infrastructure (ducts, antennae, poles) for broadband network
deployment
• Consider wireless broadband with minimum speed of 1.5 Mbps as a universal service
V.3.4. Lessons LearnedThe analysis of broadband networks and services in Kazakhstan provides a basis for distilling
a number of lessons. The following are structured around the promotion of enhanced supply
and the stimulation of demand.
Supply policiesPublic policies aimed at enhancing the supply of broadband services in Kazakhstan have
focused around the development of competitive incentives. The fixed and mobile broadband
segments comprise multiple players actively competing on the basis of state-of-the art
networks and quality of service. The Kazakh broadband competition model is built around a
limited number of players to allow industry sustainability as opposed of promoting the
frictional costs resulting from unrestricted competition. The government recognizes that a
three player mobile broadband market is sufficient enough to allow for the development of
competition.
Similarly, a de facto fixed broadband competition model built around an incumbent and
numerous niche players focused either on specific geographies and/or market segments
appears to be appropriate. On this basis, the enforcement of network sharing through
unbundling of specific physical facilities (ducts, poles, antenna) is aimed at facilitating the
sustainability of new entrants.
The pro-competition policies are combined with state intervention in order to foster the
deployment of broadband in rural areas. The intervention is based on the formulation of
national plans, combined with government funding support.
Demand policiesA demonstration of how successful the Kazakh competition model has been is that broadband
pricing has decreased significantly, practically eliminating the affordability barrier. However,
the digital divide continues to exist driven potentially by cultural relevance issues. The
significant difference in broadband penetration between the urban and rural geographies
might indicate that the primary variable standing in the way of further stimulating broadband