LRT, 5G, and IT Services Export

Almaty is set to introduce high-speed Light Rail Transit (LRT) by 2027. Additionally, three major transport interchange hubs—Barlyk, Eastern, and Northern—are planned on the city outskirts. The development of this transportation infrastructure will take 5-7 years and is a key element of the systemic transformation of Almaty's public transport. 

For instance, the estimated fleet of Bus Rapid Transit (BRT) vehicles (buses, electric buses, trolleybuses) is 3.9 thousand units. The foundation of the transportation framework lies in the development of high-speed public transportation like BRT, LRT, and subway. By 2030, 42 transport corridors covering approximately 300 km will be established in the city. 

Kazakhstan has become a leader in 5G deployment in the Eurasian Economic Union (EAEU). Kcell and Tele2/Altel have already installed 1234 5G base stations in 18 cities across the country. Currently, Kcell's 5G operates in cities such as Astana, Almaty, Shymkent, Turkistan, Aktau, Atyrau, Aktobe, Uralsk, Kyzylorda, Konye, Taldykorgan, Karaganda, Kokshetau, Kostanay, Pavlodar, Semey, and Taraz. Moreover, in many cities, the operator exceeds its licensing obligations in terms of the number of base stations. 

The launch of 5G has helped relieve existing 4G networks by redirecting a significant amount of traffic to the new technology. As per the regulator in the telecommunications sector—the Ministry of Digital Development, Innovation, and Aerospace Industry (MDDIAAI)—operators must provide 5G coverage for at least 75% of the territory in republican cities and 60% of the territory in regional centers by the end of 2025. In Kyrgyzstan, test trials have been completed this year, but radio frequency resource auctions have not yet been held. Turkmenistan has not taken any actions toward 5G implementation. In Tajikistan, operators already offer pre-5G services to residents of the capital, as well as the cities of Bokhtar and Khujand. In Uzbekistan, the introduction of 5G began this spring, and in the initial stage, Tashkent will be fully covered, partially along with Nukus and regional centers. 

Kazakhstan exported IT services worth $370 million in the first nine months of 2023, compared to $343 million for the entire year 2022. The official report from the National Bank will be published in March, and we confidently predict that we will reach the $500 million mark this year. These figures affirm the demand for Kazakhstani IT services. The opening of the international tech park Astana Hub in 2018 influenced export growth. 

Subsequently, acceleration and educational programs were launched, and IT companies were exempted from taxes.