Tajikistan: Pondering a tougher regulatory system for communications

2/22/06

The Communications Ministry in Tajikistan is pushing for the establishment of a new regulatory system that would effectively give the state control over Internet service providers and international telecoms. If implemented, the new framework would have the ability to stifle freedom of speech in the Central Asian nation, Tajik entrepreneurs say.

Tajikistan's Ministry of Communications has long dominated the country's information sphere. The country's main telecommunications provider, Tajiktelecom, was established under the Communications Ministry's auspices in 1996. In recent years, the ministry has launched a variety of other spin-off ventures, each of them designed to handle various communications and media-related needs State sponsorship has enabled these companies to offer customers preferential tariffs. Even so, the demand for services has outpaced the ministry's ability to provide, creating the space for the emergence on independent operators.

Small-scale firms have established a strong presence in evolving sectors, namely as Internet service providers (ISPs) and mobile phone network operators. Until recently the State Communication Inspectorate ( SCI) regulated these sectors. But in 2005, authorities created a new body, the Communications Regulatory Agency (CRA), to oversee licensing and regulatory issues. On paper, the new agency was intended to act independently of direct government control. Practice has shown otherwise.

According to the chief engineer of one private ISP, the new agency is under the government's firm control and it has far broader regulatory powers than did the former inspectorate. The CRA, for example, requires internet and mobile phone operators to provide detailed data on billing, the number of clients and profits. The engineer, speaking on condition of anonymity, said the CRA duplicates many of the functions of the country's tax inspectorate. Several local observers say the agency's far-reaching investigatory powers have had a "chilling effect" on the ISP and mobile communications spheres, as entrepreneurs are now hesitant to develop their businesses in a way that might displease the government, and thus invite retaliation in the form of an audit.

In addition, the government is currently formulating a plan to establish a "Unified Communications Center and Information Resource Unit" under the Communications Ministry. Implementation of the plan would require all telecommunications companies and ISPs to route their traffic through the center. For many independent companies, which have invested hundreds of thousands of dollars in equipment, the establishment of the state-controlled center would constitute a financial calamity. Much of the independent companies' equipment would be rendered redundant, and there would be no way for them to obtain fair value in a sell-off. In one instance, Babylon-Mobile has already invested heavily in a fiber-optic line in Dushanbe so that it can operate independently of Tajiktelecom.

Entrepreneurs complain that if the Unified Communications Center becomes a reality, the government would obtain a virtual monopoly over telecommunications and Internet service. As a result the quality of service would likely suffer while customer prices would increase, the entrepreneurs said.

Some independent operators voiced alarm that the government harbors a desire to force all providers to implement procedures and install software that boosts the state's ability to snoop into the activities of private citizens and non-governmental organizations. The chief fear is that the government would use the new system to maintain surveillance on its critics and challengers, both real and perceived.

In addition to voicing free-speech concerns, critics contend that implementation of the plan would leave the country vulnerable to a communications blackout. Any interruption in the envisioned center's systems could potentially prevent Tajiks from communicating with or obtaining information from the outside world.

An independent political analyst, who asked not to be named, expressed doubt that the new scheme will be implemented, arguing that the cost would be prohibitive without substantial international support. Tajikistan's national budget in 2006 is roughly $400 million. Thus, it would be virtually impossible for the government to come up with the funds on its own to build the infrastructure for a unified communications center. In addition, the expert noted, the plan is likely to face considerable opposition from within the ruling elite. Many influential individuals in Tajikistan's political and security establishments are shareholders in nominally independent telecoms and ISPs, and are likely to resist the move by the Communications Ministry to achieve dominance over those two lucrative business sectors.

Posted February 22, 2006 © Eurasianet