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.

On 11 December 2025, a one-day training workshop on the implementation of Public-Private Partnership (PPP) projects hosted in Osh for government and municipal officials.

The event was organized with the participation of the Office of the Plenipotentiary Representative of the President of the Kyrgyz Republic in Osh Region and the Regional Investment Council of Osh Region, in cooperation with the Public-Private Partnership Center under the National Investment Agency of the Kyrgyz Republic.

The training aimed to strengthen the institutional and human resource capacity of government and municipal officials, as well as to promote a practical, results-oriented approach to the application of PPP mechanisms as an effective tool for regional socio-economic development.

The workshop was officially opened by Iliyaz Tashbaev, Deputy Plenipotentiary Representative of the President of the Kyrgyz Republic in Osh Region. In his welcoming remarks, he emphasized the importance of intensifying economic activity at the regional level, attracting investments, and ensuring the practical application of public-private partnership mechanisms within the day-to-day work of local authorities. He also highlighted that such capacity-building initiatives are expected to lead not to formal reporting, but to concrete initiatives and projects aimed at territorial development and improving the quality of life of the population.

Participants of the training included representatives of government and municipal authorities from Osh, Jalal-Abad, and Batken regions, including staff of local state administrations, local self-government bodies, and relevant sectoral institutions.

The training programme covered key aspects of PPP project development and implementation, including:

• the legal and regulatory framework for public-private partnerships in the Kyrgyz Republic;
• procedures for initiating, preparing, and implementing PPP projects;
• the role of government and municipal authorities in project facilitation and oversight;
• mechanisms for risk allocation between public and private partners;
• practical case studies of PPP project implementation.

Special attention was given to the use of public-private partnership mechanisms as an instrument for attracting investment, developing infrastructure, and improving the efficiency of public expenditure.

As a result of the training, participants gained practical knowledge and recommendations necessary for the preparation and implementation of PPP projects in their respective regions. It is expected that the outcomes of the workshop will be reflected in the development and initiation of concrete PPP projects aimed at addressing priority socio-economic challenges and supporting regional development objectives.

The organization of this training represents an important step toward enhancing investment activity and strengthening effective cooperation between the public sector and the business community at the regional level.

The event was held with the financial support of the United Nations Development Programme (UNDP).

On 15 December, Secretariat of the Business Development and Investments Council under the Cabinet of Ministers of the Kyrgyz Republic and the Regional Investment Council of Jalal-Abad Region hosted the national forum “ECO-Chatkal 2030: Investments and Climate Resilience” in Bishkek.

The event brought together representatives of government authorities, international organizations, the expert community, the private sector, and civil society to discuss the launch of a national label pilot for sustainable development in the Chatkal District, as well as the application of climate finance mechanisms.

The forum was moderated by Uluk Kydyrbaev, Head of the Secretariat of the Council under the Cabinet of Ministers.

During the forum, participants presented scientific and analytical justifications for selecting the Chatkal District as a pilot territory, discussed the institutional model of the label pilot, and outlined priority economic areas for its implementation, including green energy, organic agriculture, small and medium-sized enterprises, tourism, and creative industries.

Special attention was given to opportunities for mobilizing international climate finance instruments, including the Green Climate Fund (GCF), the Global Environment Facility (GEF), debt-for-nature and debt-for-climate swap mechanisms, as well as carbon and biodiversity credits. The importance of effective interagency coordination and institutional support for the initiative was also emphasized.

Following expert, institutional, and sectoral sessions, forum participants agreed on a final resolution containing a consolidated proposal to launch the national label pilot and climate finance mechanisms in the Chatkal District. The resolution is advisory in nature and will be officially submitted to the Administration of the President of the Kyrgyz Republic and the Cabinet of Ministers of the Kyrgyz Republic.

The forum confirmed strong interest from government institutions and international partners in developing the Chatkal District as a pilot model for sustainable development of mountainous regions, and reaffirmed the role of the Regional Investment Council of Jalal-Abad Region as a key regional platform for advancing strategic development initiatives.

As part of the Investment Forum “Investment Vector: Government and Business,” the Secretariat teams of the Regional Investment Councils (RICs) operating under the Plenipotentiary Representatives of the President of the Kyrgyz Republic in the regions took active part in the event.

At present, the Secretariat teams of the Regional Investment Councils are functioning in six regions of the Kyrgyz Republic and serve as a key institutional mechanism for dialogue between the business community and public authorities at the regional level. Their work is focused on supporting investment initiatives, collecting and systematizing proposals from entrepreneurs, and promoting public–private partnership (PPP) mechanisms in the regions.

At the conclusion of the Forum, Uluk Kydyrbaev, Head of the Secretariat of the Business Development and Investments Council under the Cabinet of Ministers of the Kyrgyz Republic, presented letters of appreciation to the Secretariat teams of the Regional Investment Councils in recognition of their contribution to strengthening investment dialogue and supporting entrepreneurial initiatives across the regions.

Commemorative gifts were also presented to the RIC coordinators for their contribution to interregional coordination: Myktybek Osmonaliev, Coordinator for the southern regions, and Abdu-Salam Tairov, Coordinator for the northern regions.

The Regional Investment Councils (RICs) operate under the Plenipotentiary Representatives of the President of the Kyrgyz Republic in the regions. The Secretariat teams of the RICs carry out their activities within the framework of a tripartite agreement between the Secretariat of the Business Development and Investments Council under the Cabinet of Ministers of the Kyrgyz Republic, the United Nations Development Programme (UNDP) in the Kyrgyz Republic, and the Public–Private Partnership Center under the National Investment Agency. Support for the implementation of the Council’s initiatives is provided by the European Bank for Reconstruction and Development (EBRD).