Kyrgyzstan as a country is in its infancy in developing its entities. While much has been done to modernize Kyrgyzstan's telecom network; geographical conditions, a high poverty rate and an incomplete legal and regulatory framework have been major obstacles to the expansion of telecom operations.

However, in 1996 government of Kyrgyzstan took initiative for the city telecommunication project. The main objective of this project was to provide telecom connections everywhere in Kyrgyzstan. The telecom Market is open to both foreign and domestic investors for establishment of their networks. To achieve these targets, establishment of an independent regulator took place, which effectively led to the full market liberalization, although some further development is still required.