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In November Uzbek Agency of Information and Communication announced that the number of mobile phone users in the country grew above 5 million. In 2005 the number was around 1 m., and in 2007 the growth in number of users accounted for 2,5 m. There are 5 mobile phone providers in the country. Source:Cnews.kz, 11/22/07. Link to article in Russian: http://cnews.kz/news/line/index.shtml?2007/11/22/101597

Mobile network in Kazakhstan is a ‘locomotive’ of the whole Telcommunications market. This article tells the history of the development of mobile market in Kazakhstan, which started in 1994. Today two GSM companies Kar-Tel and GSM Kazakhstan share 90% of total mobile telecom market in Kazakhstan. Particular feature of Kazakh telecom network is that the major telecom operator, that is controlled by Kazakhtelecom is the largest shareholder of the mobile companies assets – 49% of GSM Kazakhstan, 100% of Mobile Telecom Service, 50% of Altel, and 54% of Nursat. The monopoly of one major operator means peaceful rules and expected competition. Various statistics say that Kazakhstan today has around 11 m. mobile phone users. However, due to many users owning 2 or more sim-cards, or other reasons, the actual number of mobile network dissemination is around 8 m. This is still very significant, considering that total population is 15 m, i.e. around 80% of total population. User preferences are described as: outgoing calls within network- 90%; outgoing calls to other operator networks – 70.5%; outgoing calls to fixed phone lines – 51%. Despite the high numbers of users, prognosis for future sound less encouraging. And many experts predict reduction in telecom market incomes. Some of the argued reasons are: high service prices and lack of interesting and innovative content in services. Another is the absense of tradition of mobile phone use, which is yet forming in the country. The author also argues that ‘locomotive is overheated’ and the income of Kazakhtelecom is expected to reduce by 4%, because of the overuse of the mobile market and the potential lowering of service prices. And still the growth is expected to come from extension of network into rural areas. In addition the state has an ambition to become one of the 50 most competitive states in this sphere, create e-government and other state programs in IT. One cannot neglect the expansion of Russian companies in the market, the introduction of 3G and voice and non-voice services, and VAS-services. Source Cnews.kz, 11/19/07. Link to article in Russian: http://cnews.kz/reviews/index.shtml?2007/11/19/101471

In this article the head of the department of new technologies of Kazakhstan National Bank - Mr. Gorojankin - answers questions about the development of E-banking in Kazakhstan. Fast developing area of e-banking today is so called ‘mobile banking’ that is explained by the large number of mobile phone users in the country. Most popular internet-banking web site (http://www.homebank.kz/ of Kazkommercbank) for seven years of its existance has 100 thousand users. Meanwhile, the largest system of mobile-banking in Kazakhstan (http://www.halykbank.kz/cards/mobil_banking of National Bank) for two years of its existance has 205 thousand clients and the total growth of mobile-banking system of the National Bank is accounted for 69%. Despote of the vivid increase in client base the specter of services if still limited and Mr. Gorojanin stresses more improvements and innovations to come in 2008. Source Cnews.kz, 11/23/07. Link to article in Russian: http://cnews.kz/reviews/index.shtml?2007/11/23/101710