Digital infrastructure in the Kyrgyz Republic stopped being a “niche sector” a long time ago. The availability and reliability of connectivity now shape the country’s investment appeal, the competitiveness of businesses, the rollout of public services, and—plainly—the quality of everyday life.

By 2025, the Kyrgyz Republic’s digital environment had reached a new level of maturity. According to DataReportal, 6.41 million people were using the internet at the beginning of 2025, with penetration reaching 88.5% of the population. Social platforms had 3.3 million users (45.6% of the population) in January 2025—figures that directly support the growth of e-commerce, digital marketing, online services, and new business models.

Another telling indicator is the structure of mobile connectivity. GSMA Intelligence reports that 95.1% of mobile connections in the country are broadband enabled (3G, 4G, and 5G). This provides a solid technological foundation for digital transformation, online services, remote work, and government digital platforms. Still, a high share of broadband-capable connections does not automatically mean equal access to high-quality internet everywhere, especially for businesses outside major urban centers.

This is where headline statistics meet on-the-ground realities: backbone capacity, the “last mile,” access to engineering infrastructure, energy reliability, tariff logic, and regulatory practice. It is precisely at these intersections that the telecom sector’s agenda is formed—and where effective dialogue with the state becomes essential.

Large infrastructure initiatives continue to underpin growth. Under the Digital CASA – Kyrgyz Republic initiative, more than 3,000 km of fiber-optic lines have reportedly been deployed and a range of social facilities connected. In parallel, the state adopted the Digital Code of the Kyrgyz Republic (Law No. 178 of July 31, 2025), intended to serve as a framework for regulating the digital environment, protecting citizens’ rights, and advancing the digital economy.

But legislation is only one part of the picture. In practice, the resilience of digital transformation depends on implementation conditions: access to infrastructure, permitting and coordination procedures, investment predictability, and the economics of network expansion. At the center of these issues is the Association of Communications Operators (ACO), working in coordination with the Secretariat of the Business Development and Investments Council under the Cabinet of Ministers of the Kyrgyz Republic.

Below is the AOS position as articulated by its Executive Director, Salavat Ormoshev, and how it connects to the sector’s key trends.

ACO Mission: A Unified Market Voice and Structured Dialogue with the State

Q: What is AOS’s core mission today, and why is its role growing?

The Association’s mission is to consolidate the sector and form a unified, balanced position for operators in dialogue with state bodies, regulators, and related sectors of the economy. AOS brings together leading communications operators of the Kyrgyz Republic—companies that provide most telecom services nationwide and carry a major investment burden for network development. The Association supports advocacy processes in telecoms and protects the interests of the telecom services market, promoting its steady development in the interests of all stakeholders.

The telecom market is fragmented by nature: operators differ in scale, business models, and regional presence. In this context, AOS serves as a platform for developing coordinated approaches on strategic sector issues and for protecting collective interests. It acts as an institutional representative, translating technical, economic, and investment matters into the language of regulatory and managerial decision-making.

As telecommunications increasingly become the backbone of the digital economy and social infrastructure, the Association plays not only the role of a business advocate but also a partner to the state in shaping long-term, sustainable digital policy.

This logic matters even more as the national digital agenda expands. In March 2025, the Ministry of Digital Development was renamed the Ministry of Digital Development and Innovative Technologies, and its mandate was expanded, including satellite technologies. In practical terms, this means the telecom agenda now intersects more frequently with a wider range of digital services and technology solutions—raising the value of professional, institutional dialogue.

Digital Infrastructure: Clear Progress, Persistent Constraints

Q: How do you assess the state of digital infrastructure and the main bottlenecks, especially in the regions?

In recent years, the Kyrgyz Republic has made noticeable progress in developing digital infrastructure, particularly through major national and international projects. Significant contributions came from initiatives aimed at strengthening backbone networks and improving regional connectivity. Digital CASA, in particular, became an important stage in expanding fiber-optic infrastructure, reinforcing international digital corridors, and improving the stability of internet connectivity in the country.

These projects laid a foundation for further development of digital services, improved quality of communication, and created preconditions for regional economic growth. However, despite this progress, a substantial gap between major cities and the regions remains.

In a number of oblasts, backbone infrastructure is still limited in capacity and redundancy, affecting network reliability. The most vulnerable link remains the “last mile,” which determines actual user access to high-speed internet. In sparsely populated and remote areas, building networks remains economically difficult without additional incentives.

Energy supply problems add another layer of cost—especially in the regions, where instability in electricity grids forces operators to invest in backup power solutions. A significant barrier also remains access to engineering infrastructure—poles, cable ducts, and sites for equipment placement—where unified and transparent rules are still lacking.

This is not about isolated inconveniences. It is about sector economics: where constraints and costs are high, investment in expansion and quality requires both incentives and predictable conditions.

Access to Infrastructure and Its Impact on the Cost of Services

Q: How do infrastructure access conditions affect unit costs and tariff sustainability?

For many years, the Kyrgyz Republic has consistently ranked among the leading countries in Central Asia and across the post-Soviet space in terms of internet affordability. This is largely due to flexible pricing policies of internet providers and operators’ efforts to keep services fairly priced for the population.

The rental of poles and other engineering infrastructure has remained one of the most sensitive issues for the sector for many years. Current tariffs and rental conditions directly affect the cost base of communications services—especially when expanding networks in the regions and implementing new investment projects.

High rental payments increase operating costs and extend payback periods. With limited purchasing power, these costs may ultimately be reflected in end-user prices for business and households. That is why it is crucial to form economically justified, transparent, and unified rules for infrastructure rental—rules that stimulate network development rather than restrain it.

A multiple increase in rental rates would raise operators’ costs, potentially totaling tens of millions of soms, which could lead to upward tariff revisions for consumers.

In 2024, the Bishkek Mayor’s Office’s Municipal Property Management Department decided to increase the rental fees for deploying and suspending fiber-optic lines on the poles of municipal enterprises “Bishkeksvet” and the “Bishkek Trolleybus Administration” by more than four times.

Our joint efforts, and the effectiveness of the Secretariat’s platform, contributed to reducing the rental costs for municipal poles. Thanks to the coordinated position of the Association and the Secretariat, it was possible to reach a mutually acceptable solution and ensure business participation in the municipality’s decision-making process on a matter of such importance to the sector. As a result, internet access tariffs were not increased.

In practical terms, this is one of the most sensitive elements of the digital agenda: access to infrastructure directly affects the economics of network expansion and the sector’s ability to keep services affordable in conditions of limited demand—especially outside major cities.

The Regulatory Environment: The Framework Exists—Implementation Will Decide

Q: After the adoption of the Digital Code, what is most critical for the sector in regulation?

From the operators’ perspective, the regulatory environment remains a key factor defining the sector’s investment climate. A major positive step was the adoption of the Digital Code of the Kyrgyz Republic, which established the basis for a systemic approach to regulating the digital sphere and outlined a strategic vision for sector development.

At the same time, adopting a framework document is only the first stage. To realize the Digital Code’s potential, it is necessary to develop stable, clear, and coordinated secondary legislation. It is at the level of by-laws that practical conditions are formed for building networks, accessing infrastructure, applying new technologies, and planning investments over the long term.

Another issue is fragmented regulation and duplicated coordination procedures, which increase administrative burdens and slow project implementation. For a capital-intensive telecom sector, where investments are planned over a 7–10 year horizon, predictability and stability of rules are critical.

The takeaway for the broader digital economy is straightforward: not the mere presence of a framework, but the quality and predictability of implementation will determine the pace of technology deployment and the willingness to invest in network development.

Regions and Business: Digital Access as a Growth Condition

Q: What barriers are most strongly felt by businesses in the regions, and what can reduce the gap?

Outside Bishkek, access to quality internet remains uneven. Entrepreneurs in the regions often face a limited choice of providers, higher service costs, and less reliable connections. This constrains the development of e-commerce, financial services, remote employment, and digital platforms.

Reducing the regional gap is possible only through a comprehensive approach: incentivizing shared use of infrastructure, supporting development of backbones and the “last mile,” simplifying regulatory procedures, and expanding public-private partnership mechanisms in areas with low commercial attractiveness.

This perspective aligns with international assessments of digital readiness, which typically highlight infrastructure, governance, and the impact of digital technologies on the economy and regional development as separate, interlinked dimensions.

A 5–7 Year Horizon: 5G, IoT

Q: How do you see the sector evolving over the next 5–7 years, and what decisions must be made now?

Over the next 5–7 years, the telecom sector in the Kyrgyz Republic has the potential to become a full-fledged foundation for the country’s digital economy. This means widespread access to stable broadband internet, development of next-generation networks including 5G, deployment of IoT solutions, and support for the digitalization of business and public services.

Particular attention should be paid to next-generation satellite connectivity and the use of low-earth-orbit satellite constellations. These solutions can complement terrestrial infrastructure—especially in remote and hard-to-reach areas where traditional network construction is economically or technically challenging. If properly integrated into the national communications system, satellite technologies can significantly reduce digital inequality and increase the resilience of telecom infrastructure.

To make this future real, key decisions must be taken now: build a predictable, investment-friendly regulatory environment; establish transparent rules for infrastructure access; and treat telecommunications as a strategic development sector. The foundation is being laid today for whether telecoms become a driver of economic growth and digital transformation—or whether the country misses the window of opportunity.

Conclusion

By 2025, telecommunications in the Kyrgyz Republic had firmly entered the category of basic infrastructure for the digital economy. Mass adoption of internet and digital services has largely been achieved; the next stage will be defined by network quality and the rules that govern expansion. The AOS perspective points to a set of essential conditions: narrowing the gap between cities and regions, resolving “last mile” challenges, ensuring clear and fair access to engineering infrastructure, and—above all—building predictable regulatory practice through coherent secondary legislation and streamlined procedures.

Ultimately, this is not merely a sectoral discussion. It is about national competitiveness, the ability of entrepreneurs to scale, and whether regions can participate fully in the digital economy. That is why sustained, structured dialogue between the market and the state—through professional associations and the Business Development and Investments Council’s platform—remains one of the most practical tools for turning technical and economic challenges into systemic development solutions.