Uzbekistan Telecom Market Leads Growth in Central Asia

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s telecommunications market recorded strong growth in 2025, increasing by 18.3% to reach a total volume of 24.9 trillion Uzbek soums, according to industry data.

The sector’s growth rate significantly exceeded that of neighboring Central Asian countries, including Kazakhstan at 11.8% and Kyrgyzstan at 8.1%, and was more than seven times higher than the global average of 2.5%.

The findings, based on research by Nexign and TelecomDaily, show that Uzbekistan’s telecom market has maintained double-digit growth for several consecutive years. In 2024, the market expanded by 19.2%, followed by 18.3% growth in 2025, reaching 24,873 billion soums.

Analysts attribute this expansion to rising internet consumption, increasing demand for digital services, and continued investment in mobile and fixed-line infrastructure.

Mobile communication and internet access remain the main revenue drivers for operators, accounting for around 30% and 51% of the market respectively. Additional contributions come from digital and IT services in the B2B and B2G segments, including cloud solutions, VPN services, and broader digitalization tools for businesses and government institutions.

The mobile segment continues to be dominated by 4G technology, with coverage reaching 95–98% of the population. In 2025, mobile internet usage increased sharply, driven by video content, social media, online gaming, and fintech services. In response, operators expanded network capacity and upgraded infrastructure.

Major telecom operators, including Beeline, Ucell, UzMobile, and Mobiuz, are also running pilot 5G projects in Tashkent and other major urban areas, particularly in IT parks, universities, and business clusters. Limited commercial testing has already begun in high-traffic zones, while Mobiuz has introduced mobile internet coverage in sections of the Tashkent metro system.

Capital expenditures in the sector have risen as operators invest in LTE-Advanced upgrades, 5G readiness, and modernization of network equipment. Companies are also focusing on improving service monetization through bundled offerings that combine internet, television, fintech, and entertainment services, alongside the development of fixed wireless access (FWA) solutions as an alternative to traditional broadband.

According to Nexign deputy CEO Sergey Karpov, Uzbekistan’s telecom industry is undergoing rapid transformation, driven by both technological and regulatory changes. He noted that operators must accelerate service innovation and adapt to evolving user demands to maintain sustainable profitability.

Regulatory reforms have also supported sector growth. The updated Telecommunications Law has strengthened requirements for service quality, infrastructure development, and data protection, while ensuring more transparent market competition.

Within the framework of the “Digital Uzbekistan 2030” strategy, the expansion of fiber-optic infrastructure (FTTH) continues across cities and district centers. Additional incentives include tax benefits for major AI and data center projects, particularly in the Republic of Karakalpakstan, where foreign investors benefit from preferential conditions for investments exceeding US$100 million.

Forecasts by Nexign and TelecomDaily suggest that Uzbekistan’s telecom market will continue to grow at an average annual rate of around 12% between 2026 and 2028, reaching approximately 35 trillion soums by 2028.

In the coming years, 5G deployment is expected to expand beyond Tashkent to cities such as Samarkand, Bukhara, Namangan, and Fergana. Broadband development will continue through fiber networks in urban areas, FWA in less densely populated regions, and satellite solutions for remote locations.

Overall, the telecom sector remains one of the key drivers of Uzbekistan’s digital economy, supporting broader technological transformation across the country.