Last week, it was announced that on January 1 of next year, Uzbekistan plans to end the Internet monopoly. This means that all network providers will have direct access to the external Internet, which will significantly impact local companies and mobile users.
The Kursiv talks about topic with Timur Barabanov, head of IT infrastructure development and operations at Beeline Uzbekistan, to understand the main changes expected on the market after the end of the monopoly.
Not More but Better
Barabanov stated that the removal of the monopoly will not have an immediate impact on mobile communications in the country. However, in the long term, it will lead to a competitive market environment, potentially improving the quality of services provided.
“This will not lead to the emergence of new mobile operators. However, companies will continue to compete, particularly in terms of quality. A more stable Internet will attract customers and encourage other companies to improve their reliability,” said the specialist.
Big Tech is Welcome
The main change that is expected to occur involves the connection of major operators, content delivery networks and international data centers to Uzbekistan’s global traffic exchange points. Barabanov gives the example of Amazon, which has been in negotiations with Uzbekistan for a long time regarding the connection of its services. With its large population and rapidly growing digital technology market, Uzbekistan is becoming an attractive destination for global tech giants. Companies like Google, Amazon, and Microsoft are keen to provide access to their services through various Uzbek operators.
“The current topic under discussion in the media and blogging channels is Uzbekistan’s accession to the WTO. When international companies enter a market and invest, they consider the country’s general economic climate. Before investing, they assess all risks and conduct compliance checks. Once the market opens and is demonopolised, they have the opportunity to work with local operators such as Beeline Uzbekistan and other companies,” explains the specialist.
Prices and Challenges
The primary challenge for operators is the requirement for experience in entering international networks.
“This is a complex task demanding investments in team training, software, and equipment, as well as heightened attention to legal requirements and levels of responsibility. Having independent access to the external network will raise our accountability to clients and the state,” the expert explains.
Regarding prices, Barabanov points out that the situation can only improve with a growth in the number of operators and increased competition.
“Uzbektelecom has accomplished significant work, some of which other operators may consider emulating. It’s unlikely that prices will immediately drop across the board. However, the availability of alternatives on the market will allow consumers to select a service and its quality according to their needs, which should generally lead to positive developments,” he says.
Available Internet for Everyone?
The availability of the Internet and mobile communications for the Uzbek population depends largely on companies’ policies regarding the construction of base stations.
“For example, our company has significantly increased its investment in infrastructure, thereby improving the availability of communications for the population. As the population’s interest grows, the volume of internet channels we purchase from Uzbektelecom will also increase. In the future, we may even provide it independently. Dividing traffic between Uzbektelecom and its communication channels will help balance the load. Uzbektelecom and other operators are actively building base stations, but the specialist believes that the situation where demand exceeds capacity may recur,” believes Barabanov.
The expert concluded that demonopolisation of the market will help to avoid this kind of problem and ensure reliable communications, as is the case in Kazakhstan, where operators can rent channels from other companies and quickly provide the necessary capacity for their clients.
