Information and communications technologies (ICT) market in Kazakhstan

The Information and Communication Technologies (ICT) sector in Kazakhstan has experienced significant growth and development over the past decade. As a key driver of economic progress, the ICT market in Kazakhstan plays a crucial role in fostering innovation, enhancing connectivity, and supporting various industries.

Growth in the industry is driven by the country's increasing population, communication services, and rising adoption of smartphone services. A major part of this market growth in Kazakhstan is attained by premium connectivity and content services in the country.

Competition in the industry is limited to a few players. Market leaders continue to enjoy significant market share and strive for innovation in areas ranging from mass-market entertainment to high-end business connectivity. Companies in the industry are introducing new and affordable products and services. Mergers and acquisitions, along with the expansion of services, networks and bandwidths are shaping a fluid business environment.

Key opportunities for Canadian ICT companies in Kazakhstan

• Emerging technologies: The adoption of emerging technologies, including artificial intelligence, blockchain, and internet of things, is expected to shape the future of the ICT market in Kazakhstan with government support and private-sector innovation as key drivers
• International collaboration: Engaging in international collaborations and partnerships will enable Kazakhstan to leverage global expertise, access new markets, and stay at the forefront of technological advancements

Notable challenges for Canadian ICT companies in Kazakhstan

• Cybersecurity concerns: As the ICT market grows, the risk of cybersecurity threats also increases. Addressing cybersecurity challenges is vital to maintaining trust in digital services and protecting critical infrastructure
• Skill gaps: To fully leverage the potential of ICT, there is a need to bridge skill gaps in emerging technologies. Investing in education and training programs will be crucial to ensure a workforce that is equipped to handle the demands of a digital economy

Kazakhstan's business landscape

The ICT market in Kazakhstan encompasses various segments, including telecommunications, software and services, hardware, and emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT). Telecommunications continue to dominate the market, with a robust mobile and broadband infrastructure.

To attract foreign investment into the sector, Kazakhstan officially lifted restrictions on foreign ownership of telecommunications companies in 2022, except for the country's main communications operator, Kazakhtelecom.

Digital Kazakhstan program

The government of Kazakhstan has implemented the "Digital Kazakhstan" program, aiming to accelerate the country's digital transformation. The program focuses on expanding broadband access, promoting e-government services, and fostering digital literacy. Such initiatives create a favorable environment for ICT market growth.

E-Government services

Kazakhstan has made significant strides in establishing e-government services, streamlining administrative processes, and enhancing transparency. The digitization of public services contributes to increased efficiency and improved citizen satisfaction.

Telecommunications

The mobile telecommunications sector is a major contributor to the ICT market. Kazakhstan has a competitive mobile market with several operators (Kcell, Beeline, Tele2, Altel 4G) providing 4G and 5G services. The growing demand for data services, smartphones, and mobile applications continues to drive the sector's expansion.

Broadband connectivity

The government has invested in expanding and improving broadband infrastructure and promoting internet access in urban and rural areas. Enhanced connectivity is crucial for supporting digital initiatives, e-commerce, and online education.

Summary

As Kazakhstan continues its digitalization journey, the ICT sector is poised to play a pivotal role in shaping the country's economic future. The ICT market in Kazakhstan, including the telecommunications subsector, presents significant opportunities for growth, driven by government initiatives, increased digitalization, and an increased demand for advanced technologies. Addressing challenges such as cybersecurity threats and skill gaps will be crucial for sustained success.

For more information Kazakhstan's ICT market, please contact jurgita.rushkyte@internatioanl.gc.ca.