 Telecommunications, one
of the most dynamic sectors |
Telecommunications has not always been seen as a
priority investment area in Uzbekistan and this
resulted in old and inadequate system inherited
from the Soviet days. It was not until 1995 that
the government decided on a plan to update the network
with digital transmission and switches, and to increase
the capacity to over four million lines by 2010.
Uzbektelecom was given the responsibility for upgrading
this system by inviting foreign specialists to guide
them. In 1999, the World
Bank showed great interest in the privatisation
process, providing a loan, which would, in return,
attract foreign investors. World Bank consultants
provided Uzbektelecom with a legal base defining
concepts such as tariff regulation and licensing.
Today there is a great deal of foreign activity
from companies such as Siemens, Ericsson, Alcatel
(Germany), Daewoo Telecom (South Korea), the Baktri
Group (Indonesia), Telecom (Italy) and Teletash
(Turkey).
The government has decided to release 70% of their
shares of Uzbektelecom for privatisation, selling
not more than 51% to a single foreign investor.
The Asian Development Bank and the EBRD
will invest one million USD in a loans-for-equity
deal that will help privatise Uzbektelecom.
The EBRD has suggested that an investment program
and a business plan for the next 5 years should
be made available to potential investors. Other
areas of communication namely data transformation
and transmission, cellular communication and telecommunication
have been made available for privatisation too,
however excluding international telephone communications
which, by recommendation of the World Bank, will
remain under the monopoly of the state. The government
is trying its utmost to make telecommunications
attractive for foreign investors, e.g. by providing
licenses that are readily available. Uzbektelecom
admits that development will not take place without
international investment and thus they claim that
the doors are wide open for large operators with
capital. Consequently, Commerzebank AG (Germany),
together with Arthur
Andersen, has won the tender to become Uzbektelecom's
consultant on selling shares to foreign investors.
The timetable and procedure to be followed is currently
in the hands of consultants.
The cellular telephone industry is one of the fastest growing markets in Uzbekistan with a growth from 8 000 mobile subscribers in 1997 to 70 000 in 2000. There are already six foreign cellular telephone companies providing services in Uzbekistan. Unlike some of the sectors in Uzbekistan, this is one of the areas in which there is free competition. Uzdunrobita, an Uzbek-US JVC founded in 1992, Daewoo Unitel from Korea and Coscom founded in 1996 are some of the top mobile operators presently operating in Uzbekistan. The GSM system is used by five of the companies, leaving Uzdunrobita, the pioneer of cellular communication in Uzbekistan, on analogue. All main urban areas of the country are provided with cellular services while some cellular providers provide a roaming service enabling users to make and receive calls from most regions throughout Uzbekistan.
Unlike cellular communications, the internet market
has been developing at a slower pace, but nevertheless,
still constantly growing in Uzbekistan with a 200%
growth reported for year 2000, totalling 80 000
users. Some major obstacles, however, need to be
overcome before Uzbekistan can operate to its fullest
extent in the domain of internet. A countrywide
computer network needs to be established, an efficient
legal base for constructing both local and world-wide
information networks is required, computer technology
has to be improved in the government, industrial
and private sectors, and data transformation networks
need to be created to cope with the growing demand.
Steps are being taken towards the improvement of
most of these issues. Up-to-date computer technology
is being introduced into the government and the
private sector, and an integrated data transformation
network is being created with special equipment
installed in Tashkent connecting the regional centres.
The equipment for this has been already supplied
by foreign companies. These proactive measures are
evidences that the government understands the necessity
to develop and modernise the existing telecommunication
infrastructure in every aspect of it. |
Currently, there are 32 providers of data transformation services with an estimated 80 000 internet users in Uzbekistan. Due to the presently overloaded data transformation network, the government is encouraging the creation of private, independent networks in order to satisfy the country's current requirements for data transformation. In 1999 the Cabinet of Ministers approved the Program for the Modernisation and Development of the National Data Transmission Network which will provide high-speed networks, and consequently allowing more Internet service providers (ISP's) into the market with lower prices by 2003. Existing data transformation networks are the state network created under the Tashkent telephone network, Uzpak, a state network operating since 1994, and Buzton, an Uzbek-British company founded in 1995. There is a wide spectrum of possibilities for foreign activity and competition in specifically this area of telecommunication.
Naytov, operating in Uzbekistan since 1994 is primarily a computer engineering and services provider company which furnishes software, hardware and local area network (LAN) solutions for its clients in Uzbekistan. Moreover, Naytov has the goal of undertaking long term projects that will contribute towards the speedy development of information technology and to develop the countrywide infrastructure. Amongst other computer services, Naytov provides internet services using high-speed satellite channels of communication and has increased its client base from 20 clients 5 years ago to more than 5 000 clients today making it one of the largest internet providers in the country. "Our main purpose is to train specialists that would possess the necessary skills and abilities that will contribute to the creation of certain services that are unique and capable of attracting clients," affirms Mr. Sergey Tsoy, the General Manager of Naytov.
Another area of telecommunications that has been introduced to Uzbekistan is commercial satellite communications provided chiefly by Kamalak, operating in Uzbekistan since 1992. This company broadcasts 18 Russian, British and American channels to 30 000 subscribers in and around Tashkent. In addition, a paging service is offered to residents of Tashkent. This is a totally untapped market and, according to Mr. Pulat Umarov, the General Director of Kamalak, an unexplored field. "It is too early for us to overestimate our achievements and we are not yet satisfied with what we have done so far. Our main goal is to provide better services of high quality", says Mr. Umarov.
The telecommunication sector of this country is standing on the edge of a new era of technology and is open to take on the challenges of development in this area. There are opportunities for everyone from suppliers to service providers. The government is fully aware that privatisation will bring about modernisation, development of existing services and new opportunities. Moreover, Uzbektelecom has all the necessary and required licenses to conduct a full range of activities. "We realise that we will not be able to develop without the participation of large world capital and large operators and therefore we keep the gates open for telecommunication." Ensures Mr. Fatkhulla Abdullaev, the General Director of the Post and Telecommunication Agency of Uzbekistan. |
