Country Readiness Assessment Report – Kyrgyzstan Despite the fact that the license agreement of “Kyrgyztelecom” grants exclusive rights for long distance and international communication services until 2003 only, in reality “Kyrgyztelecom” still has a monopoly in the local communications market due to the lack of profit from local communications at current tariffs. Traditional communication services Currently, the fixed public telephone network of “Kyrgyztelecom” includes 475,300 lines (data from the annual report of JSC “Kyrgyztelecom” for 2000). “Kyrgyztelecom” has inherited from the former Soviet Union a hierarchical network structure that includes primary, secondary and local networks. The primary network consists of cable, radio-relay, satellite and some air trunk lines. It embraces all oblasts of Kyrgyzstan and connects them with networks of other countries through multi-channel long-distance communication equipment. Additionally, the primary network includes intra-zone and local primary networks that, in turn, include transmission systems which connect automated telephone stations (ATS). The secondary network includes equipment that provides connection from international stations to ATS, to which clients are directly connected. Almost two thirds of the total volume of switching equipment consists of coordinate type stations which are used in rural telephone networks, while digital ones are being installed in urban areas, where high purchasing power and demand for additional services exist. As such, the dynamics of capacity being used in cities and in rural areas differ. The low level of income in rural areas, and the migration of active sectors of that population to urban zones or outside the country, have been a factor in the decrease of the ratio of telephone use in rural areas. In December 1996, under a credit agreement between “Kyrgyztelecom” and the EBRD, a surface satellite station of “A” standard was installed. Currently, this station provides direct international access to Japan, China, Germany, Great Britain, and India, with subsequent transit to other countries of the world. Practically, with their installation of surface satellite stations of “A”, “F”, and “B” standards, and automated long-distance telephone station (ALDTS) with a total capacity of 2.7 thousand channels, Kyrgyz communication networks are broadly integrated with world telecommunication networks. Moreover, construction of the Kyrgyz section of the Trans Eurasia (TE) optical line, which directly connects Shanghai, China and Frankfurt, Germany, has been completed. The total length of TE is 27,000 km, and the length of the Kyrgyz section is 183 km. International connections will be made through Synchronic Digital Hierarchy (SDH) transmission lines, with a capacity of 768 channels (622Mbs). Transmission centres in administrative and regional centers will have a capacity of 1920 channels (155Mbs). Except Bishkek, Sokuluk, Belovodskoe, Kara-Balta, and Kaindy will be connected to TE. This project will provide Kyrgyzstan with direct access to many countries of Europe and Asia. In Bishkek, the largest and most promising communications market of the Kyrgyz republic, trunk transport communication infrastructure is being actively established. An optical cable with utilisation of SDH technologies, for the purpose of arranging inter-station connection with a data transfer speed of 622Mbs, has been installed. The capacity of the optical cable is 24 fibers. However, in spite of all the measures which have been implemented (modernization of network, creation of trunk infrastructure), the level of installation of telephones in Kyrgyzstan is still one of the lowest among CIS countries. In 2000, the level of telephone installations – the telephone density (number of telephone units, including coin telephones and state owned telephones 23