(94.1 percent), followed by Kazakh (4.5 percent), and English (1.4 percent), a figure
which may account for the high percentage of Kazakh Web sites hosted in Russia
(including those on the country-code domain name ‘‘.kz’’). Six percent of ‘‘.kz’’ domain Web sites are hosted in Kazakhstan, with the remainder hosted in Russia and
elsewhere.
The cost of Internet access remains high relative to the average salary (54,500 tenge
in 2008, or USD 363). 7 KazakhTelecom’s tariffs for unlimited ADSL access with capacity
of 128 Kbps were USD 30. However, as a result of the ongoing liberalization in the telecommunications sector in 2007, the operators’ tariffs fell considerably. Since 2007,
schools in Kazakhstan are provided with free dial-up access, which is being expanded
to include broadband connections (although access is restricted to Web sites and other
Internet resources within the ‘‘.kz’’ domain). 8
Liberalization of the telecommunications market in 2004 increased competition
among the five licensed operators: KazakhTelecom (the former state monopoly, now
with 51 percent state participation), Transtelecom, Kaztranscom, Arna (DUCAT), and
Astel. The first-tier ISPs with international Internet connections and their own infrastructure are KazakhTelecom, Nursat, Transtelecom, Kaztranscom, Arna, Astel, and
TNS Plus. There are approximately 100 second-tier ISPs that are purchasing Internet
traffic from the first-tier ISPs. Market liberalization has not been completely carried
out, as there are restrictions on foreign ownership for fixed-line operators providing
long-distance and international services. In addition, KazakhTelecom retains dominance over the telecommunications market, making it difficult for other operators to
compete. 9
One of the largest ISPs, Arna (DUCAT), accused KazakhTelecom of breaching the
Law for Promoting Competition and Limiting Monopolist Activities. Arna claimed
that KazakhTelecom used uncertified systems that monitor and interfere with the telecommunications of customers who are using services offered by competing companies.
An investigation of the Kazakh government revealed that such systems indeed existed
and were used by KazakhTelecom, but no evidence was found to prove KazakhTelecom
was intentionally interfering with competitor activities.
KazakhTelecom is the operator of the national data transfer network, which connects the major cities of Kazakhstan with a total bandwidth of 957 Mbps 10 and carrying capacity in separate local segments of up to 10 Gbps. 11 KazakhTelecom had
about 2.5 million fixed-line subscribers in 2005 and accounted for approximately
90 percent of the country’s fixed-line market. It also controls 49 percent of the country’s leading mobile operator, GSM Kazakhstan, and 50 percent of another cellular
operator, Altel. 12 KazakhTelecom is also launching an interactive IP TV service, as it
attempts to maintain its dominance in the fixed-line market. 13 Other leading first-tier
ISPs, Nursat and Astel, operate terrestrial and satellite-based infrastructure. There are
five mobile operators in the country. Three operators are offering GSM services and
Kazakhstan
185
which may account for the high percentage of Kazakh Web sites hosted in Russia
(including those on the country-code domain name ‘‘.kz’’). Six percent of ‘‘.kz’’ domain Web sites are hosted in Kazakhstan, with the remainder hosted in Russia and
elsewhere.
The cost of Internet access remains high relative to the average salary (54,500 tenge
in 2008, or USD 363). 7 KazakhTelecom’s tariffs for unlimited ADSL access with capacity
of 128 Kbps were USD 30. However, as a result of the ongoing liberalization in the telecommunications sector in 2007, the operators’ tariffs fell considerably. Since 2007,
schools in Kazakhstan are provided with free dial-up access, which is being expanded
to include broadband connections (although access is restricted to Web sites and other
Internet resources within the ‘‘.kz’’ domain). 8
Liberalization of the telecommunications market in 2004 increased competition
among the five licensed operators: KazakhTelecom (the former state monopoly, now
with 51 percent state participation), Transtelecom, Kaztranscom, Arna (DUCAT), and
Astel. The first-tier ISPs with international Internet connections and their own infrastructure are KazakhTelecom, Nursat, Transtelecom, Kaztranscom, Arna, Astel, and
TNS Plus. There are approximately 100 second-tier ISPs that are purchasing Internet
traffic from the first-tier ISPs. Market liberalization has not been completely carried
out, as there are restrictions on foreign ownership for fixed-line operators providing
long-distance and international services. In addition, KazakhTelecom retains dominance over the telecommunications market, making it difficult for other operators to
compete. 9
One of the largest ISPs, Arna (DUCAT), accused KazakhTelecom of breaching the
Law for Promoting Competition and Limiting Monopolist Activities. Arna claimed
that KazakhTelecom used uncertified systems that monitor and interfere with the telecommunications of customers who are using services offered by competing companies.
An investigation of the Kazakh government revealed that such systems indeed existed
and were used by KazakhTelecom, but no evidence was found to prove KazakhTelecom
was intentionally interfering with competitor activities.
KazakhTelecom is the operator of the national data transfer network, which connects the major cities of Kazakhstan with a total bandwidth of 957 Mbps 10 and carrying capacity in separate local segments of up to 10 Gbps. 11 KazakhTelecom had
about 2.5 million fixed-line subscribers in 2005 and accounted for approximately
90 percent of the country’s fixed-line market. It also controls 49 percent of the country’s leading mobile operator, GSM Kazakhstan, and 50 percent of another cellular
operator, Altel. 12 KazakhTelecom is also launching an interactive IP TV service, as it
attempts to maintain its dominance in the fixed-line market. 13 Other leading first-tier
ISPs, Nursat and Astel, operate terrestrial and satellite-based infrastructure. There are
five mobile operators in the country. Three operators are offering GSM services and
Kazakhstan
185