Legal and Regulatory Frameworks
Compared with its neighbor Kazakhstan, Kyrgyzstan does not compel local ISPs to
work with the state-owned provider and respects the rules of competition in the
market. Previously, in order to ensure that a USD 500 million loan from the World
Bank to build Kyrgyzstan’s telecom infrastructure was repaid, a state decree granted
KyrgyzTelecom the exclusive rights to international long-distance services until
2003. 15 This decree has since been overruled, and ISPs now have independent channels for international connections. Operators have built their own data transmission networks within the capital, Bishkek, providing an alternative to the incumbent
KyrgyzTelecom’s infrastructure. Outside of Bishkek, however, IT development is
hindered by poor infrastructure, and only the incumbent KyrgyzTelecom provides
Internet access. Internet companies are not investing in building their own networks,
leading to very low Internet availability outside the capital. A retail-tariff-rebalancing
plan was proposed in 2008, which is expected to begin improving investment in local
infrastructure.
In 2002, the state declared ICT development a priority by way of the National Strategy on Information and Communication Technologies for Development of the Kyrgyz
Republic. The national ICT plan was reviewed by the ICT Council and approved by the
president in 2003. Eager to harness Internet capabilities in order to stimulate economic
growth, the government is implementing action plans and ICT strategies to encourage
development of e-government, e-education, and the e-economy. Moreover, under a
joint program between the government and international organizations, 95 percent of
central government bodies, as well as 50 percent of local ones, were connected to the
Internet and now provide online information about their services. 16 However, the
cyber presence of political opposition is limited. Only three Kyrgyz Web sites belonging to political parties were detected by ONI. 17
The communications regulator in the country is the National Communications
Agency (NCA) whose chairman is appointed by the president of Kyrgyzstan. The NCA
is financed by fixed-percentage contributions from operators, and therefore it is not
dependent on the state budget. The NCA regulates and supervises postal and electronic
communication companies, issues licenses, monitors the Internet, and settles disputes
among operators. The Ministry for Transport and Communications is the policymaking body in the communications sector, responsible for formulating the sector
development policy, including designing privatization programs, enhancing competition, and exercising monitoring functions. Although the functions of NCA and
the ministry are legislatively separate, the two entities often enter into disputes with
regard to their authority to regulate some activities, in particular licensing, radio
frequencies, telephone number capacity, and tariffs. The process is quite political and
there are frequent disagreements concerning the development of communications
Kyrgyzstan
195
Compared with its neighbor Kazakhstan, Kyrgyzstan does not compel local ISPs to
work with the state-owned provider and respects the rules of competition in the
market. Previously, in order to ensure that a USD 500 million loan from the World
Bank to build Kyrgyzstan’s telecom infrastructure was repaid, a state decree granted
KyrgyzTelecom the exclusive rights to international long-distance services until
2003. 15 This decree has since been overruled, and ISPs now have independent channels for international connections. Operators have built their own data transmission networks within the capital, Bishkek, providing an alternative to the incumbent
KyrgyzTelecom’s infrastructure. Outside of Bishkek, however, IT development is
hindered by poor infrastructure, and only the incumbent KyrgyzTelecom provides
Internet access. Internet companies are not investing in building their own networks,
leading to very low Internet availability outside the capital. A retail-tariff-rebalancing
plan was proposed in 2008, which is expected to begin improving investment in local
infrastructure.
In 2002, the state declared ICT development a priority by way of the National Strategy on Information and Communication Technologies for Development of the Kyrgyz
Republic. The national ICT plan was reviewed by the ICT Council and approved by the
president in 2003. Eager to harness Internet capabilities in order to stimulate economic
growth, the government is implementing action plans and ICT strategies to encourage
development of e-government, e-education, and the e-economy. Moreover, under a
joint program between the government and international organizations, 95 percent of
central government bodies, as well as 50 percent of local ones, were connected to the
Internet and now provide online information about their services. 16 However, the
cyber presence of political opposition is limited. Only three Kyrgyz Web sites belonging to political parties were detected by ONI. 17
The communications regulator in the country is the National Communications
Agency (NCA) whose chairman is appointed by the president of Kyrgyzstan. The NCA
is financed by fixed-percentage contributions from operators, and therefore it is not
dependent on the state budget. The NCA regulates and supervises postal and electronic
communication companies, issues licenses, monitors the Internet, and settles disputes
among operators. The Ministry for Transport and Communications is the policymaking body in the communications sector, responsible for formulating the sector
development policy, including designing privatization programs, enhancing competition, and exercising monitoring functions. Although the functions of NCA and
the ministry are legislatively separate, the two entities often enter into disputes with
regard to their authority to regulate some activities, in particular licensing, radio
frequencies, telephone number capacity, and tariffs. The process is quite political and
there are frequent disagreements concerning the development of communications
Kyrgyzstan
195