Kazakhstan Expands Telecom Investment as Global Industry Cuts Back

While global telecom companies have begun scaling down network investments in 2024, Kazakhstan is moving in the opposite direction — continuing to invest in digital infrastructure.

Orda.kz explores the reasons behind this trend.

Global Shift Toward Spending Cuts

According to a report by analytics firm Dell’Oro Group, telecom operators worldwide reduced capital expenditures (CapEx) by 8% in 2024 compared to the previous year. This decline reflects the completion of major 5G rollout phases in developed countries, shifting priorities, and market saturation amid high debt levels.

CapEx cuts by leading telecom companies in 2024 included:

• Verizon: from $18.2 billion to $17 billion (−6.6%)
  
• T-Mobile US: from $12 billion to $9 billion (−25%)
  
• Charter Communications: from $7.6 billion to $6.5 billion (−14.5%)
  
• Telefónica: from $5.6 billion to $4.5 billion (−19.6%)
  
• Deutsche Telekom: from $5.1 billion to $4.2 billion (−17.6%)

Projections suggest that global CapEx will continue to decline at an average annual rate of 2% until 2027, with CapEx-to-revenue ratios expected to drop from 16% to around 14%.

Wireless network investment is forecast to fall to 12–13% of operator revenue.

The industry is in a position where nearly all cash flow is consumed by capital expenditures, dividends, and debt servicing, leaving little room for innovation or improving customer experience,
 states a PwC report.

Kazakhstan's Continued Growth

Kazakhstan's telecom infrastructure continues to expand. In 2024, the national telecom market grew by 11%, reaching ₸1.362 trillion, according to the Bureau of National Statistics.

Mobile services and internet access remain the sector’s primary revenue sources.

As of April 1, 2025, Kazakhstan had over 26 million mobile service consumers — up by 3.5 million from the same period in 2024. Mobile internet users reached 18.8 million, a 4.8% increase year-over-year. Over the past two years, mobile data consumption in the country has doubled.

Kazakhstan now ranks among the top 10 in per capita mobile internet usage.

Network development remains a key focus. Operators continue to invest in modern equipment and large-scale upgrades to meet the government’s goal of increasing nationwide connectivity.

Infrastructure and Innovation Investment

Beeline Kazakhstan, which serves over 11.6 million subscribers, is actively investing in network development. In 2024, the company’s capital investment totaled ₸85 billion, with more than ₸300 billion invested over the past five years.

These funds supported the construction of over 500 new base stations and the modernization of around 3,000 network facilities last year. This significantly improved coverage and service quality. The deployment of Massive MIMO — a 5G technology using multiple antennas to improve network capacity — helped boost performance in high-traffic areas.

Network expansion continues. In the first half of 2025, the company installed 40% more base stations than during the same period in 2024. High-speed LTE became available in 178 additional settlements, giving 130,000 more residents access to the service.

Among new technological solutions are dual-purpose poles that combine street lighting with telecom equipment — a more acceptable option in areas where residents oppose traditional towers.

Six of these poles have already been installed in five cities.

Kazakhstan rose to 47th place out of 103 in the Speedtest Global Index for mobile internet quality in the first half of 2025, climbing three positions from the previous ranking. In June, the country ranked just ahead of Hong Kong, and outperformed Germany (54th), the UK (57th), and Japan (63rd) in mobile internet speed.
 

Original Author: Mariya Kravtsova