cafe ´s, and only 8 percent from home. 8 Development of the Internet infrastructure still
targets only the urban markets, in particular the two largest cities—Bishkek (in which
77 percent of the Internet users are concentrated) and Osh.
There are slightly more female than male users. Forty percent of all users are aged
between 10 and 20, 35 percent are aged 20 to 30, and 16 percent are between 30 and
40. Most of the users are students (50 percent), and they prevail over the users who
work (34 percent of users are employees in private companies, and 9 percent are
employees in the state administration). Interestingly, the 25 percent of users who
have defined themselves as unemployed make up the third largest group of Internet
users. Russian sites remain the most visited among Kyrgyz Internet users (90 percent),
compared with only 8 percent Kyrgyz and 2 percent English-language sites. 9 In spite of
the popularity of the Russian language in everyday life, the Kyrgyz language portion
of the Internet is expanding.
Kyrgyzstan has made relatively early progress in the liberalization of its economy
compared to other CIS countries. The republic joined the WTO in the second half
of 1998. In order to comply with the requirements for liberalization of the telecom
sector in 2006, the government agreed to put more than 77 percent of the incumbent
KyrgyzTelecom up for sale. Nonetheless, only 10 percent of the shares were transferred
to private hands by 2007, and 77.84 percent of the incumbent is still owned by
the state. In 2008, around 61 percent of all users connected to the Internet through
KyrgyzTelecom. 10
Notwithstanding the pending privatization of the main incumbent, the liberalization of telecommunications services, driven by foreign investment and financial assistance, has resulted in an increasingly competitive, profitable, and growing Internet
sector in the last few years. The Law on Electronic and Postal Communications, drafted
on the basis of sector best practices, has opened the market for competition. The communications regulator has developed and implemented new access, interconnection,
and tariff regulations after extensive consultations with stakeholders. 11 The competitive market has provided a wide choice of telephone connection service, Internet access, mobile connection, and television and radio channels to the population. This
has led to increased competition among the operators, and in particular Internet service providers. In 1996, there were only two operators—AsiaInfo and Elcat—that
charged USD 2.50 per hour for Internet use. By 2000, there already were 16 companies
providing Internet access for USD 0.90 an hour, and finally in 2005 there were 38 companies on the market, which dropped the cost for Internet access to USD 0.30 an hour.
To win competitive advantage on the market, ISPs have introduced Internet cards, and
these have become very popular.
Out of the 38 active ISPs, only three have independent external connections to the
international Internet (KyrgyzTelecom, Saima Telecom, and Elcat). Also, only three
providers own the infrastructure they use (KyrgyzTelecom, Saima Telecom, and Elcat).
Kyrgyzstan
193
targets only the urban markets, in particular the two largest cities—Bishkek (in which
77 percent of the Internet users are concentrated) and Osh.
There are slightly more female than male users. Forty percent of all users are aged
between 10 and 20, 35 percent are aged 20 to 30, and 16 percent are between 30 and
40. Most of the users are students (50 percent), and they prevail over the users who
work (34 percent of users are employees in private companies, and 9 percent are
employees in the state administration). Interestingly, the 25 percent of users who
have defined themselves as unemployed make up the third largest group of Internet
users. Russian sites remain the most visited among Kyrgyz Internet users (90 percent),
compared with only 8 percent Kyrgyz and 2 percent English-language sites. 9 In spite of
the popularity of the Russian language in everyday life, the Kyrgyz language portion
of the Internet is expanding.
Kyrgyzstan has made relatively early progress in the liberalization of its economy
compared to other CIS countries. The republic joined the WTO in the second half
of 1998. In order to comply with the requirements for liberalization of the telecom
sector in 2006, the government agreed to put more than 77 percent of the incumbent
KyrgyzTelecom up for sale. Nonetheless, only 10 percent of the shares were transferred
to private hands by 2007, and 77.84 percent of the incumbent is still owned by
the state. In 2008, around 61 percent of all users connected to the Internet through
KyrgyzTelecom. 10
Notwithstanding the pending privatization of the main incumbent, the liberalization of telecommunications services, driven by foreign investment and financial assistance, has resulted in an increasingly competitive, profitable, and growing Internet
sector in the last few years. The Law on Electronic and Postal Communications, drafted
on the basis of sector best practices, has opened the market for competition. The communications regulator has developed and implemented new access, interconnection,
and tariff regulations after extensive consultations with stakeholders. 11 The competitive market has provided a wide choice of telephone connection service, Internet access, mobile connection, and television and radio channels to the population. This
has led to increased competition among the operators, and in particular Internet service providers. In 1996, there were only two operators—AsiaInfo and Elcat—that
charged USD 2.50 per hour for Internet use. By 2000, there already were 16 companies
providing Internet access for USD 0.90 an hour, and finally in 2005 there were 38 companies on the market, which dropped the cost for Internet access to USD 0.30 an hour.
To win competitive advantage on the market, ISPs have introduced Internet cards, and
these have become very popular.
Out of the 38 active ISPs, only three have independent external connections to the
international Internet (KyrgyzTelecom, Saima Telecom, and Elcat). Also, only three
providers own the infrastructure they use (KyrgyzTelecom, Saima Telecom, and Elcat).
Kyrgyzstan
193