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BMI's Central Asia Telecommunications Report for Q110 covers Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan, with five-year forecasts for the mobile and fixed-line sectors, as well as market data analysis sections for the mobile, fixed-line and internet markets. This quarter our forecasts have all been extended through to the end of 2014. Current trends are expected to continue with slow but steady growth in the fixed-line markets and fast growth in the mobile sectors, albeit at a slowing pace. Central Asia's mobile markets are by far the most liberalised and developed sectors in each of the countries. The Russian operators MTS, VimpelCom and MegaFon all have significant interests across the region, competing with each other and Nordic giant TeliaSonera, along with Turkey's Turkcell, through its joint venture with TeliaSonera, Fintur Holdings. The main development in the mobile market this quarter has been Sweden's Tele2 acquiring a controlling stake in Kazakhtelecom's GSM mobile unit, NeoTelecom. NeoTelecom is the smallest of Kazakhstan's three GSM mobile operators but has been slowly building up its market share. This represents Tele2's first foray into Central Asia but the operator does have experience of the Commonwealth of Independent States (CIS); Tele2 Russia is the fourth largest mobile operator in Russia. Tele2 has a reputation for efficient management and following a price leadership strategy and we are expecting it to have a notable impact on Kazakhstan's mobile market. Tele2 has earmarked SEK2,400-2,600mn of capital expenditure in Kazakhstan between 2010 and 2013 and aims to have more than 20% market share within four years of commercial re-launch. Tele2's main competitors will be VimpelCom's KaR-Tel and Fintur's K-Cell. In October 2009 MTS Uzbekistan announced that it would trial LTE services in Uzbekistan. The announcement came just one week after MTS' fiercest rival in the region, VimpelCom, announced an LTE trial at its Kazakh subsidiary KaR-Tel. BMI had not expected MTS and VimpelCom to choose countries in Central Asia for their LTE trials but given the underdeveloped wireline infrastructure in the region there is huge growth potential for mobile broadband services. As noted above the region's fixed-line markets are relatively underdeveloped and dominated by the countries' respective fixed-line incumbents. Competition in the markets does vary but even in the more developed markets such as Kazakhstan, competition is not particularly fierce, with most alternative operators choosing to target the growing internet sectors over fixed-line. Nevertheless, fixed-line penetration in the region is increasing, albeit at a slow and steady pace. Going forward, we are not anticipating dramatic increases in the region's fixed-line subscriber bases. Although fixed-line networks are being expanded, the mobile sectors are expanding at a much faster rate and fixed-to-mobile substitution is expected to grow in prominence.