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Kazakhtelecom may exit the home internet market

26.03.2025 12:09:00
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The Agency for Protection and Development of Competition (APDC) has proposed stripping Kazakhtelecom of the right to provide fixed internet services to households. According to the agency, this move would boost competition in the sector and create fairer conditions for private operators.

APDC’s research shows that Kazakhtelecom and Kar-Tel (Beeline) hold a dominant position in the fixed internet market. The report highlights that other providers struggle to compete effectively with the country’s largest telecommunications company.

Experts note that Kazakhtelecom’s infrastructure includes over 88,000 km of fiber-optic lines and exclusive access to cable ducts. State support makes the company nearly untouchable for competitors.

APDC believes that the government should only be involved in the sector when private alternatives are lacking. It proposes keeping state control over infrastructure while removing Kazakhtelecom from the retail internet market.

This approach aligns with international practices. In several developed countries, including the UK, the Netherlands, and South Korea, large state-owned operators focus on backbone networks, while the retail segment is left to private companies.

As an alternative, Kazakhtelecom is encouraged to develop its B2B and B2G segments, serving businesses and government institutions. This would maintain its role in Kazakhstan’s digitalization without harming competition.

APDC is confident that increased competition in the retail sector could lead to better service quality and lower prices.

The agency notes that Kazakhtelecom has repeatedly faced accusations of abusing its dominant position. In 2023–2024, APDC uncovered cases of unfair competition by the state operator.

The proposed measures require further discussion, but their implementation could fundamentally reshape Kazakhstan’s telecom market.


(This translation was generated automatically.)