Telecommunication sector of the Kyrgyz Republic is one of the most dynamically developing sectors of economy. According to the data of the National Statistics Committee the volume of postal and telecommunications services in Kyrgyzstan was Som 9084.7 million (about US$252.4 million) and increased by 75 percent in 2007. For the first quarter of 2008 the volume of communications services demonstrated the growth of 124.3% in comparison with the same period of the last year.
In the first place such growth rates are achieved due to the rapid development of mobile telecommunications (see the overview of the mobile telecommunications market). The level of penetration of mobile telecommunications in the country was about 50% in the middle of 2008. In comparison with the mobile telecommunications operators the rates of development of fixed line telecommunications are not high and the level of penetration remains to be at about 10% (see the overview of the fixed line telecommunications market). Such problems are widespread when localities lack telephone connections, there is a waiting list to connect subscribers and there is a significant portion of outdated analogous lines. Privatization of OJSC Kyrgyztelecom is intended to ensure higher rates of development of wire and wireless fixed telecommunication to meet in full the existing demand for basic telephone services, and also additional services of Internet access, data transfer, intellectual networks and other services that are provided by the possibilities of modern telecommunication networks.
A modern regulatory and institutional environment is established and the markets of mobile, long-distance and local telecommunications have been demonopolised for the development of the telecommunication sector in the Kyrgyz Republic. As of January 1, 2008, 293 operators and telecommunications services holding 436 licenses carry out their activities at the telecommunication market and provide a wide range of telecommunication and postal services.
The National Communications Agency of the Kyrgyz Republic (www.nas.kg) performs the regulatory functions in postal service and telecommunications, including the use of the radio frequency spectrum. The underlying legislative document for the sector is the Law of the Kyrgyz Republic "On Telecommunications and Postal Service" N31 of April 2, 1998 . At present, with the technical assistance of the European Bank for Reconstruction and Development (EBRD) a project is implemented on preparation of changes to the Law on Communications that is planned to be completed by the end of 2008.
