Translated by Merdjen from Russian blog

Only recently - some three or four years ago, a mobile phone in Turkmenistan was considered a gadget of luxury. BCTI Company owned by Mikhail Barash, citizen of the United States, was an exclusive mobile service provider.

 Enjoying a total lack of competitors, BCTI established such a monthly service fee that costs of having a mobile phone were equal to that of maintaining a car over a month.

 Judge for yourself - according to various data - and to an every-day-living too – an average monthly salary at the time in Turkmenistan was USD 30-40. Yet an average monthly bill for a mobile phone stood at USD 31. At such an accelerated pace, the American Misha in 2004 alone gathered USD 12 million from his 33,000 customers. By mid 2005 the number of mobile service users increased to 57,400.

This however does by no means suggest that the prices became lower; rather, perhaps, it suggests an appearance of a larger number of rich people in Turkmenistan. Consider these figures - out of 6 million of country population only 60,000 had mobile phones. Nothing but 1%!

This same 2005 saw a sudden change. First, one more mobile service provider emerged - state owned Altyn Asyr (“Golden Age”). Then, the Russian Mobile TeleSystems MTS (OJSC) had outbid the control packet of BCTI shares.

The era of the monopoly had ended. Something distantly resembling competition had begun and mobile phones imminently became more accessible. The nation started an active “telephonisation” process. MTS, who has become an indisputable leader on the Turkmen market, already have more than 140,000 clients; Altyn Asyr has 33,000.

Despite prices of state-owned company being highly competitive, potential customers are holding back because of the wide-spread fear that “if it belongs to state, then must be tapped”. The new government, however, is not giving up its positions so easily in such a promising and profitable sphere of business.

The President of Turkmenistan had just signed a special decree (!) on the purchase of 200,000 SIM cards from a French company Axalto S. A. to develop national mobile communications. Concurrently, the Turkmen state mass media started PR work to add to Altyn Asyr’s image some more reliability and international shine.

It should be noted that Turkmenistan owns Altyn Asyr (Golden Age) operator of cellular communications of GSM standard which is a business unit of the state telecommunications company Turkmentelekom. In August 2004, Altyn Asyr joined the world association of GSM standard cellular communications operators headquartered in Dublin (Ireland). Turkmenistan registered its national cellular network as TM-Cell.

These busy actions are quite prompt and comprehensible - May 2007 saw a well-known company Ericsson stating its positive intention to explore Turkmen market of mobile communication technologies. And the fact the Company’s Vice President’s statement of intent was broadcasted on the national television indicated that Swedish were not joking.