Government Rules Out Privatisation Of Kyrgyztelecom
News: The Kyrgyzstan government has annulled the sale of its majority shareholding in local fixed line incumbent Kyrgyztelecom, reports Rossiyskaya. The Cabinet of Ministers included Kyrgyztelecom on a list of state-owned assets that will not be privatised, claiming that such a move may result in a rise in fixed line tariffs in the country. Kyrgyztelecom's turnover fell to KGS2.25bn (US$35.03mn) in 2012, compared with KGS2.47bn (US$38.5mn) in 2011, according to government sources.
BMI View : The decision means it is less likely that the incumbent will be able to modernise its core fixed-line business in the near to medium term. Nevertheless, with little in the way of competition, BMI forecasts subscriber numbers will continue growing. BMI estimates that there will be 544,200 main telephone lines in service in 2013 and expects the total to rise 14.7% by 2017 to 624,500. During this period penetration will rise from 9.9% to 10.8%.