Uzbekistan’s Telecom Market Surges by 18% to Outpace CA States
The telecommunications market in Uzbekistan expanded at an unprecedented rate during 2025. According to a joint industry report published by Nexign and the analytical agency TelecomDaily, the sector’s total valuation reached 24.9 trln UZS ($2 bn) following an impressive year-on-year growth of 18.3%.
This rapid development firmly positions Uzbekistan as a regional leader in digital expansion. The country’s growth rate was notably higher than its neighbours and managed to exceed the global average of 2.5% by an astonishing seven times.
The dynamic upward trend is largely fuelled by rising internet traffic alongside heavy financial investments in both mobile and fixed-line networks. Experts highlighted that digital IT services are experiencing aggressive growth, particularly within the B2B and B2G sectors.
The most significant contributions are coming from cloud solutions, VPNs and comprehensive digitisation services aimed at businesses and government structures.
Network upgrades and the push for 5G
Mobile communication remains the primary driver for everyday consumers with 4G technology currently dominating the landscape to cover up to 98% of the population. The past year saw record-breaking mobile data consumption as citizens increasingly engaged with video streaming, social media, online gaming and fintech platforms.
To manage this heightened load, domestic operators are actively modernising their infrastructure to expand network bandwidth. Concurrently, major providers such as Beeline, Ucell, UzMobile and Mobiuz are testing next-generation 5G networks across Tashkent and other major cities. These rollouts are strategically targeting high-density areas including IT parks, university campuses and bustling business districts.
Sergey Karpov, the first deputy general director of Nexign, explained the commercial realities facing these network providers.
«To maintain profit margins operators must learn to quickly launch new services, adapt to the needs of the audience and develop ecosystems,» he stated. «This requires a modern technological foundation — a billing platform and solutions for 4G/5G monetisation.»
State support and foreign investment
The aggressive acceleration of the market is heavily supported by government initiatives. The highly ambitious «Digital Uzbekistan – 2030» programme has been instrumental in deploying widespread fibre-optic networks across urban and regional centres.
Furthermore, strategic tax incentives are transforming the investment landscape. The government has introduced massive tax breaks specifically designed to attract artificial intelligence and data centre infrastructure to the Republic of Karakalpakstan. Foreign investors who commit capital exceeding $100 mln will be completely exempt from taxes and duties until 2040.
This lucrative offer significantly lowers barriers to entry and is expected to drastically increase the appeal of the country’s emerging data centre, cloud and edge computing markets.
