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United Nations an In-Depth Study of Broadband Infrastructure in North United Nations Economic and Social Commission for Asia and the Pacific An In-Depth Study of Broadband Infrastructure in North and Central Asia January 2014 This study has been prepared for ESCAP by Michael Ruddy and Esra Ozdemir, Terabit Consulting. The generous funding support provided by the Russian Federation is gratefully acknowledged. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city, or area of its authorities, or concerning the delimitation of its frontiers and boundaries. The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations. The information contained is based primarily on interviews, published and unpublished data, and presentations by members of the industry. Terabit has made every effort to ensure the accuracy of the information. Terabit has employed sources of information which are thought to be accurate, but the accuracy of these sources cannot be guaranteed. Wherever necessary, Terabit has also made its own assumptions and estimates based on the information it has collected. Terabit makes no representation, warranty, or guarantee concerning the accuracy, timeliness, or completeness of the information provided herein. Terabit does not assume, and hereby disclaims, any and all liabilities arising from loss or damage resulting from the use of this report, whether that loss is the result of negligence, accident, or any other causes. The study has been issued without editing. Contents of this study may be quoted or reproduced for public dissemination with due acknowledgement to ESCAP. Contact: ICT and Development Section Information and Communications Technology and Disaster Risk Reduction Division United Nations Economic and Social Commission for Asia and the Pacific United Nations Building Rajadamnern Nok Avenue Bangkok 10200, Thailand E-mail: [email protected] An In‐Depth Study on the Broadband Infrastructure in North and Central Asia DRAFT VERSION 2.0 January, 2014 I. EXECUTIVE SUMMARY ....................................................................................................................................................7 High Priority Trans‐Border Projects ............................................................................................................. 33 Medium Priority Trans‐Border Projects....................................................................................................... 33 Revenue‐Earning Opportunities for North and Central Asia .................................................................................... 34 The Europe‐to‐Asia Market Opportunity.................................................................................................................. 35 Terrestrial Fiber Optic Network Construction Cost Considerations ......................................................................... 37 II. POLICY OPTIONS FOR ENHANCING TERRESTRIAL CROSS­BORDER CONNECTIVITY ............................ 38 Overall Weakness of Existing Terrestrial Cross‐Border Connectivity........................................................................ 39 Unique North and Central Asian Policy Considerations............................................................................................ 40 The Need for Intervention by Governments and/or International Organizations in Order to Ensure Implementation of a Pan‐Asian Terrestrial Fiber Optic Network ............................................................................. 42 Available Public‐Private Partnership Options for Financing a Pan‐Asian Terrestrial Fiber Optic Network .............. 43 Stakeholder Analysis ................................................................................................................................................. 46 National Regulatory Authorities ................................................................................................................... 46 Incumbent Telecommunications Operators and Major International Gateway Operators ......................... 47 Competitive Telecommunications Operators and ISPs................................................................................. 48 Road and Railway Authorities/Operators ..................................................................................................... 50 Principles to Guide Future Network Development................................................................................................... 51 Roadmap / Next Steps for Pan‐Asian Terrestrial Fiber Optic Network Development.............................................. 54 I. COUNTRY ANALYSIS: AZERBAIJAN .......................................................................................................................... 55 Telecommunications Market Overview.................................................................................................................... 56 Regulation and Government Intervention................................................................................................................ 56 Fixed Line Telephony Market.................................................................................................................................... 56 Mobile Telephony Market......................................................................................................................................... 57 Internet and Broadband Market............................................................................................................................... 57 Domestic Network Connectivity in Azerbaijan ......................................................................................................... 58 International Internet Bandwidth and Capacity Pricing in Azerbaijan ..................................................................... 59 International Network Connectivity in Azerbaijan.................................................................................................... 59 Satellite Connectivity .................................................................................................................................... 59 Trans Asia‐Europe (TAE) Line (including Azerbaijan‐Georgia and Azerbaijan‐Islamic Republic of Iran)....... 60 Azerbaijan‐Russian Federation (Rostelecom / Azertelecom) ....................................................................... 61 Azerbaijan‐Russian Federation (Synterra (MegaFon) /Azertelecom)........................................................... 61 Azerbaijan‐Russian Federation (TransTeleKom (TTK) / Azertelecom).......................................................... 62 Azerbaijan (Nakhchivan Autonomous Republic)‐Islamic Republic of Iran.................................................... 62 Terabit Consulting www.terabitconsulting.com Page 2 An In‐Depth Study on the Broadband Infrastructure in North and Central Asia DRAFT VERSION 2.0 January, 2014 Azerbaijan (Nakhchivan Autonomous Republic)‐Turkey .............................................................................. 63 Europe‐Persia Express Gateway (EPEG)........................................................................................................ 63 Proposed International Connectivity ............................................................................................................ 65 II. COUNTRY ANALYSIS: KAZAKHSTAN ....................................................................................................................... 68 Telecommunications Market Overview.................................................................................................................... 68 Regulation and Government Intervention................................................................................................................ 69 Fixed Line Telephony Market.................................................................................................................................... 69 Mobile Telephony Market......................................................................................................................................... 69 Internet and Broadband Market............................................................................................................................... 70 Domestic Network Connectivity in Kazakhstan ........................................................................................................ 70 International Internet Bandwidth and Capacity Pricing in Kazakhstan .................................................................... 72 International Network Connectivity in Kazakhstan .................................................................................................. 72 Satellite Connectivity .................................................................................................................................... 72 Trans Asia‐Europe Line (TAE) (Kazakhstan‐China, Kazakhstan‐Kyrgyzstan, and Kazakhstan‐Uzbekistan) ... 73 Kazakhstan‐Kyrgyzstan (Elcat)....................................................................................................................... 74 Kazakhstan‐Russian Federation (northern Kazakhstan) ............................................................................... 74 Kazakhstan‐Russian Federation (northwestern Kazakhstan).......................................................................
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