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 est imates that there will be 544,200 main telephone lines in service in 2013 and expects the tota l to rise 14.7% by 2017 to 624,500 . During this period penetration w ill rise from 9.9% to 10.8 %.