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NEWS

Telecoms market in CIS countries to recover in 2012

13 December 2011

http://www.openpr.com of 12/13/2011  - There is no doubt, that besides Russia, the three biggest telecommunications markets in the CIS region are Ukraine, Kazakhstan and Belarus, followed by Uzbekistan and Azerbaijan. However, by per capita spending the regional leaders are Kazakhstan, Moldova, Azerbaijan and Belarus, while Ukraine is in the seventh position. There are many reasons for the difference in per capita spending in the CIS states, including prices of the service and spending structure. There has not yet been any attempt to calculate and compare the cost of the standard service basket in the CIS countries. In Ukraine, for example the price of the mobile telephony or internet access services is one of the lowest in the CIS countries and there is also a relatively well-developed fixed-line telephony network, therefore consumption of telecommunications services in volume is bigger in comparison to Kazakhstan or Azerbaijan, which have even higher per capita spending in value.

Moldova, which has a common border with the EU states and high density of population, has a strong advantage for the development of telecommunications services and has made a significant step forward in this area, in spite of being less economically developed in comparison to other CIS countries. A significant drawback is Moldova's population, which is one of the lowest in the region.

Georgia and Armenia also achieved visible progress in the development of their telecommunications markets because of the liberalisation and creation of a competitive environment. National telecoms monopolies in these countries lost the exclusive right for external voice and data traffic exchange and were privatised. Foreign investors managed to develop strong business and created competition. On the other hand, even the most developed Middle Asian countries like Uzbekistan and Kazakhstan and Caucasus oil exporter, Azerbaijan, are far behind the CIS leaders in the development of internet access services mainly due to being located quite far from the world's most developed economic regions (chiefly the EU), which necessitates a high cost for the construction of backbone networks in these countries.  Full report is available here