Government Regulation of the Mobile Communications Industry in the Kyrgyz Republic

Abstract

The article reviews the situation on the mobile communications market in the Kyrgyz Republic which is characterized by high concentration and tariff growth outpacing inflation. After a period of rapid development and high competition in the early 2000s, the market reached saturation, and the transition to bundled tariffs complicated the comparison of providers’ offers. The analysis shows that, despite the presence of several players in the market, there is a tendency to coordinate actions in the pricing area which has led to an increase in the monthly average revenue per user (ARPU) and profitability of the industry significantly exceeding inflation and average profitability in the economy. The article proposes to study the mechanisms of government regulation that will ensure fair competition and prevent further uncontrolled growth of tariffs, while maintaining incentives for investment in infrastructure development, including the deployment of a 5G network, and improving the quality of services.