"5G and Quality of Communication": Issues of Telecommunications Discussed at the VI Digital Forum "Digital Almaty 2024."
As part of the VI Digital Forum Digital Almaty 2024: "Industry X: Digital Evolution of the Future," a panel session on the topic "Quality of Communication and Tariff Increases" took place.
Participants included a Professor from the National University of Singapore, the Chairman of the Committee on Telecommunications of the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan, the Deputy Chairman of the Agency for Protection and Development of Competition of the Republic of Kazakhstan, the Chief Innovation Officer of JSC "Kazakhtelecom," as well as representatives from mobile operators.
The panel session began with discussions about the "250+" project, where mobile operators created infrastructure for high-speed mobile internet access in villages with populations of 250 or more.
"Last year, a strategic document was approved - the National Project 'Accessible Internet,' aimed at developing the telecommunications industry. Within this project, access to optical internet is planned for 3000 villages. We are implementing a subsidy program called 'Last Mile' in collaboration with the World Bank, covering small and medium-sized operators. There is also a task to provide communication infrastructure for regional and republican roads. The task of deploying 3,500 base stations by 2027 has been accelerated by the Head of State's instruction to 2025. We plan to discuss this issue with the relevant authorities to continue providing a 90% discount to telecom operators," noted Erzhan Meiramov, Chairman of the Committee on Telecommunications.
The participants then discussed key aspects of 5G technology and its implementation perspectives. Speakers shared their expert opinions and discussed the issue of balancing competition in the industry.
"Last year, we completed an analysis, identifying three entities that hold dominant positions. Two of them are state-owned, belonging to JSC 'Kazakhtelecom.' This hinders competition. Therefore, we propose introducing one operator into the competitive environment. In principle, the Committee supports us in this. We believe that the more communication operators we have, the less state involvement there will be. Where there is competition, there will be quality and affordable prices," said Bolat Sambetov, Deputy Chairman of the Agency for Protection and Development of Competition.
In many countries where 5G is implemented, there is a trend of rising prices for communication services, and Kazakhstan is no exception. Bolat Sambetov addressed one of the most crucial questions concerning many Kazakhstani citizens.
"Since mid-2022, all mobile operators have been increasing prices for communication services. Monitoring results show an average increase of 7 to 57 percent for communication service plans. We receive many complaints about unjustified increases, and we take appropriate measures. It is important to note that, until 2017, prices were regulated by the state, after which they are in free float. We have already submitted five price notifications, and some entities have reduced their tariffs. Investigations are underway for the rest," mentioned Bolat Sambetov.
In turn, Askhat Uzbekov, Chairman of the Board of JSC "Kcell," explained the reason for the increase in communication service prices, stating that it is driven by the companies' expenditures.
"From a practical point of view, 5G is indeed expensive. The volume of the internet is increasing, the cost of purchased equipment is rising, and the technology itself requires significant capital investments. In previous years, our company built from 500 to 1000 base stations per year, which was sufficient to meet demand. However, recently, demand has increased 2-3 times, and we are now catching up with this train. Building base stations for 4G and 5G is different: 5G requires more electricity, and the greater weight of active equipment requires sturdy conditions. All these factors lead to increased prices. Tariff regulation and artificially keeping prices low can reduce investment flow and, consequently, capital investments. Therefore, technical development is necessary to meet consumer demands and maintain high-quality communication. Otherwise, consumers will be even more dissatisfied," responded Askhat Uzbekov, Chairman of the Board of JSC "Kcell."
The guest of the panel session, Professor from the National University of Singapore, shared his opinion on successful industry development strategies and maintaining market competition during the implementation of 5G technology. He highlighted some advanced international practices that Kazakhstan can consider to ensure effective and sustainable development of its telecommunications infrastructure.
"Since last year, Singapore has been fully connected to 5G, providing us with significant opportunities to introduce new technologies. For example, robots in factories operate on the 5G system. Even in public administration, we use some applications to optimize our services. Therefore, we are developing 5G so that other operators can also enter this market," noted Jacob Ibrahim.
In addition to "5G," representatives of telecommunication companies in the panel session discussed measures taken to ensure continuous coverage in cities and villages and how the issue of improving communication quality in different parts of the country is being addressed.
MDDIAI Press service