Telecom-Uzbekistan's breakthrough: communications market shows record growth in the CIS

Uzbekistan is ahead of the CIS countries in terms of growth in telecommunications services, demonstrating impressive economic and technological progress in one of the key sectors of digital transformation. According to the results of 2024, the volume of the country's telecom market reached 20.9 trillion soums, which is twice as high as in 2020. The average annual growth rate was 18.6%, which is significantly higher than its neighbors-Kyrgyzstan (13.6%), Kazakhstan (11%) and Russia (7.8%).

Analysts predict further acceleration: by 2027, the telecommunications services market may reach 30 trillion soums, while in 2025 it is expected to grow by more than 15%, to 24 trillion. The average annual growth rate in the next three years is expected to remain at 12.7% — which is 2-3 times higher than that of the closest partners in the region.

The bulk of revenue is generated from mobile communications and Internet access services. By the end of 2023, 93% of the population used broadband Internet, which is 4.3 percentage points higher than a year earlier. The cellular connectivity figure of 81.1 active SIM cards per 100 inhabitants signals continued potential for further expansion.

Digitalization of the economy, development of communication infrastructure, increasing number of digital services, growing demand for cloud solutions and distribution of IT services remain key drivers of growth. The vector for technological modernization is fixed at the level of the national strategy "Uzbekistan-2030", which sets ambitious goals: full coverage of the population with broadband Internet, mobile communication along all highways and the deployment of 5G networks in Tashkent, Nukus and other regional centers.

The dominant position in the home Internet segment is held by the state-owned operator, whose share is estimated at 83%. Thanks to state support, it implements most of the infrastructure projects, including the construction of fiber-optic highways and the expansion of nodal capacities.

At the same time, the mobile communications sector is highly competitive. Operators are actively developing not only traditional telecom services, but also the digital ecosystem: streaming, fintech, cloud solutions, platforms for "big data" and products for B2B clients. Competition in the 5G segment is intensifying — the technological race of operators is stimulating the modernization of networks and the introduction of new services.

These trends confirm the positioning of Uzbekistan as one of the leading telecom markets in the CIS with high growth potential, including due to the export orientation of the future IT hub within the national digital agenda.