Kyrgyztelecom OJSC is still a single dominating telco with a. Fundamental telecommunication infrastructure made of

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Kyrgyztelecom OJSC is still a single dominating telco with a Fundamental telecommunication infrastructure made of National scale presence based on powerful microwave and FO backbone networks And principal access resource fixed-line telephone network of about 600 nodes with 690 ths. line capacity and 88% TDM share

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9,11% 9,11% 7,69% 1,21% 1,21% 1,21% 11,13% 11,54% 12,55% 6,68% 8,30% 11,34% 1,42% 1,82% 2,23% 13,56% 15,18% 18,02% 19,03% 19,23% 21,05% 1,42% 0,81% 22,47% 1,01% 25,91% 28,34% 0,40% 0,20% 0,16% Causes of growing share of Internet and local telephony and drop of earnings from long distance service: 62,55% 71,86% 68,02% A broad scale liberalization in 2003 60,93% Aggressive development of IP-telephony among 57,29% small and large scale telcos As well as the shift of voice into the mobile world 52,02% 2009 2010 2011 2012 2013 2014 International calls Telegraph Local calls Internet IN services TV, radio broadcast

2001-2004. Traditionally inherited wide-spread copper infrastructure based asymmetric ADSL with different vendor supplied DSLAMs. At the end of 2005 the total ADSL capacity reaches 3,5К ports. 2006. ADSL2+ becomes a principal technology introduced under Digital Horizon Project abundantly ensuring capacities required by that time tariff rates. 2007-2014. Quite fast growth of broadband subscriber base: 50% annual growth - 65К at the end of 2014, made 16,5% of POTS capacity.

Bishkek city network Chuy province network Osh city network Technical Components under the Digital Horizon Telecommunication Project: Voice traffic control done by a distributed dual-homed SoftX3000 Issyk-Köl province softswitch system network Osh backbone province network Transport network mostly a 10G packet Total Capacity of newly put in operation Access Network - 470 ths. ASLs and up to 80 ths. ADSL2+ Number of introduced AN nodes is about 300 with an average last mile copper line length in the range of 0.5 to 1 km Now total KT s network capacity (analogue, TDM and MSAN inclusively) is 690 ths. of narrowband ports with 70% usage, and 80 ths. broadband ports with 88% load rate Geographically distributed BRAS nodes with a total 100К capacity IPTV platform: receive and 80 channel transcoding enabled head end, middleware for LifeTV, TVoD, VoD apps.

High Quality Voice Communications High Speed Data Transmission Project positive effects: Both social and commercial objectives are gained No traditional heavy fixed network infrastructure Lots of villages 2-90 (avg. 40) km distant from regional centers are served by CDMA base stations more then 85% of populated territories covered 100 base stations all around the country in addition to other networks will make the total access network capacity up to 1,5 million voice ports

Almaty Krasnogorka Ak-Say Bishkek Boroldoy Pokrovka Shumkar-Uya MWS-7 Cholpon-Ata MWS-35 MWS-15 Kara-Jyghach Kemin Kyzyl-Adyr MWS-5 Karakol Talas MWS-48 MWS-64 Balykchy Ak-Suu Kangysh-Kyia Bakai-Ata MWS-10 MWS-16 MWS-63 MWS-47 Shamalduu-Say Ala-Bel Kochkor Chayek Kyzyl-Suu Foreign Localities MWS-22 MWS-12 Toguz- Bökönbay Toktoghul MWS-46 MWS-24 Ming-Kush Bulak Stations with Add/Drop function MWS-44 Bajy-Kyr MWS-6/1 MWS-28 Kara-Kul Stations with relay function only MWS-13 Tash-Kömür Kazarman Naryn Ala-Buka PDH link termination stations Kerben Mailü-Suu Massy MWS-Bosogho MWS-45 Sary-Kyr Bayetovo Planned MWS connection points At-Bashy Bazar-Korghon MWS-6/2 Planned relay stations Jalal-Abad Kara-Kulja Turuk-Art MWS-Kynda Kaira-Kum Andijan Khuchand Osh MWS-51 Kyzyl-Kyia Aravan MWS-26 MWS-34 First and Osh projects STM-1 SDH 1996,1998 MWS-52 MWS-59 Kadam-Jay Gülchö Second STM-1 SDH ring 2004 MWS-37 MWS-25 Sülüktü Batken MWS-38 Naukat MWS-60 STM-1 SDH links in 2009 (North-South 4xSTM-1(4+0)) Isphana MWS-39 Key MWS-66 features MWS-65 of KT s Microwave Kashkar Network: Existing PDH links (projects of 1996, 2006-2010) MWS-41 MWS-40 Aidarken Irgesh-Tam MWS-23 Other existing STM-1 SDH links Quite deeply Daraut-Korghon penetrated MWS-Tongmurun network, reaching outlaying Planned PDH links mountainous areas Wide range of transmission structures used: SDH STM-1, STM-4, PDH and various hybrid TDM-IP solutions like FibeAir IP10, IP20 etc. Microwave link capacities from 34Mbps to nx1gbps mainly achieved thru space-frequency diversity principles

Last year objective A Strategic objective of 2015-2017

Serious problems were found with growth of broadband subscriber capacity: connection rates at some places were dropping lower than 300-400 Kbps Research and measurement works resulted in expertise that when active ADSL2+ subscriber density approaches 40% of cable capacity, all ADSL2+ connection rates of that section sharply slump. Statistical frequency of this appearance on the network was conditioned by broadband connection densities of access nodes. The problems were observed both in new and old cable systems independently of cable length but were mostly related with number of connections.

However, some factors made ground for prolonging lifecycle of ADSL2+ technology on the network of Kyrgyztelecom: Firstly, the outside plant cables of KT are relatively new. The massive construction of the copper cable lines took place in 1980-2000s. 99% of the cable - with polyethylene insulation, and more than half of it with a gel filler. Only less than 1% of TG cables are with paper insulation. All trunk cables are with capacity of more than 50 pairs, thus there are 1320 cables are under excess air pressure. Monitoring of all flowmeters and equipment is performed daily with CSI-60M system. Secondly, for instance only in Bishkek city - 190 ths. fixed lines are potentially ready to be connected to xdsl, at virtually no cost. Third, the most popular in Kyrgyzstan tariff plans for the population are between 1 and 2 Mbps, which even bundled with IPTV requires will require 8-10 Mbps bandwidth. This means 4 ADSL2+ subscribers in each 10 pair cable will work reliably at distances of 1.5 km on the cables of 3rd category. Built over decades expensive copper infrastructure still has reserves of operation, at least for 5 years, provided that there will be carried out repairs and renewals, and the problem areas will be replaced with twisted pair cables of 5-6 categories. Then the percentage of the ADSL cable load could be raised from 40% to 70-80%. Moreover, in regional networks presently ADSL is sometimes the only option for providing broadband.

One of main issues of transition from copper to FTTH is price (420 USD per user). With tariff rates of 1-4 Mbps the payback period lasts for 4-5 years. Second factor is the current load of cable run ways, release of which requires switching of subscriber trunk sections to optical cables. Third factor is a high attention of regulating bodies to projects of Kyrgyztelecom and complexity of negotiation procedures in the design. Besides, there is a stressed competition environment among telecom service providers in Kyrgyzstan. Therefore alternative operators, which are more dynamic, take measures on increasing effective network access rates up to 100Mbps using legacy Ethernet (Base-T).

Summarizing the KT s experience on the development of broadband access, according to most experts, for maximum efficiency it should be taken an integrated approach to further development of subscriber access, namely: For new buildings it is reasonable to install optical cables at the stage of construction - this will allow to comply with the required standards and significantly increase the reliability of the network. In private sectors with low population densities, particularly in the regional networks it is advisable to develop the existing copper-based infrastructure, and where possible to use wireless technologies. In densely-populated metropolitan areas, with multi-storey buildings, the most effective approach is a gradual replacement of copper to optical communications, with presence of a sufficient number of connected subscribers using ADSL technology.

Introduction of SIP-telephony is a must-be instrument for securing market position and developing new services: SIP-telephony will be a proper response to the aggressive expansion of IP-services actively provided by start-up and mobile network operators In addition to our own perspective mobile network expansion of the voice services subscriber base now may only be from SIP-telephony whipping up mobile segment Wi-Fi based terminal users

Active technical reequipment in the Access and Services Planes may open new breakthrough business directions. The measures are: Unified IMS-based Services Core with FMC elements Entering mobile network market: the radio access network will be mainly built on a Single RAN approach and to serve wireless user terminals of technologies like LTE, UMTS 3G/4G, CDMA Wide spread deployment of broadband based on MetroEthernet, GPON and radio access technologies like Wi-Fi and LTE-advanced especially with an accent on short-wave Femto-cells for Fixed Services in residential sector; Expansion of the voice services subscriber base mostly at the expense of SIP-telephony whipping up mobile segment Wi-Fi based terminal users; Using a single infrastructure based on IP. Now migrating from 1/10GE (//STM-16) to 100GE/WDM systems

IXP-KG-North Karamyk Turuk-Art Perspectives of Provisioning Traffic Transit thru IXP-KG-South Building new IXPs in Kyrgyzstan: A convenient geographical location in CA and KT s nation Irgesh-Tam scale FO systems conduce building a protected information exchange center with clearing functions; and In perspective creation on its basis an international transit traffic exchange nodes (Internet Exchange Point) in the Central Asia with long distance international links

Known KT problems: Generally outdated, not competitive access type (ADSL) Often customers are not satisfied with service Lack of external traffic Dependence on the single provider s policy Subscriber growth does not meet revenue growth plans IT-services and infrastructure obsolescence Technical measures: Content zone improvement (Megogo CDN (2Gbps), Namba CDN (4Gbps), Google CDN (4Gbps), TS.kg/OC.kg CDN (8Gbps)) Access Networks (still ADSL2+ where appropriate, MetroEthernet, GPON, Radioaccess thru LTEadvanced Femto-cells) Carrier backbone / Core (Fiber-optical backbones, DWDM, M-wave, Powerful core switches) New IT-services and Infrastructure (SIP-phone, IPTV, e-gov, hosted services, SaaS, IaaS, DC&Infrastructure: cooling, fire-extinguish, cases, storage and data) Distributed BRAS and SBC equipment, more powerful border routers Goals: Traffic growth Expenses reduction Customers growth Revenue growth