Expensive Cell Phone Demonstrated by a Kazakh Individual
In the bustling cities of Kazakhstan, connection issues can arise when new districts are built, leading to "white spots" that require time for operators to install base stations, connect electricity, and build towers to eliminate these zones [1].
Recently, the Minister of Digital Development, Jaksan Madiev, was asked about mobile operators increasing tariffs while the quality of connection isn't improving. One such operator, Beeline, has implemented changes to their mobile tariffs [2].
These price changes are primarily influenced by inflation pressures and rising utility tariffs, which affect overall service costs in the region, including telecommunications. Inflation in Kazakhstan was reported at 0.7% recently, and utility tariffs increased by about 1.3% across Eurasian Economic Union countries, contributing to higher operational costs for mobile providers offering services there [1]. As of July 2025, Kazakhstan faced an annual inflation rate of 11.8% [4], further pushing prices, including mobile tariffs, upwards to offset increased costs.
Beeline's pricing changes align with these macroeconomic conditions as the company likely adjusts its tariffs to keep pace with inflation and increased expenses like utilities and services. This adjustment is consistent with broader industry trends across the Eurasian Economic Union, where price and tariff increases have been recorded across multiple sectors, influenced by rising costs and inflationary pressures [1].
While the U.S. tariff changes and reciprocal tariffs on imports may mainly affect trade dynamics and prices of imported goods, they indirectly contribute to global inflationary trends and cost pass-throughs that could influence Kazakhstan's economy and prices, including mobile services [2][3][5].
In 2024, Beeline's capital expenditures exceeded 85 billion tenge. The company offers more than 50 tariff plans, with prices, features, and changes varying significantly among these plans, so averages do not accurately reflect the situation [6]. The company has not commented specifically on the situation of a particular customer, but they do provide a one-month notice before changes to soften the process [7].
A reader from Kazakhstan has reported an increase in their mobile tariff several times over the past year. They believe the operator should provide explanations for this situation as it has become a significant burden on their budget. It's worth noting that a significant portion of the tariff plans offered by the company are archived, meaning they are no longer available for new connections [6].
Despite these challenges, the company also offers social tariffs, family packages, and the "Simple" tariff without subscription fees and internet [6]. Mobile usage has been increasing, suggesting a growing demand for these services despite the price increases [8].
References:
[1] Eurasian Economic Commission. (n.d.). Regulation on Common Principles and Rules for the Formation and Application of Tariffs for Telecommunication Services. Retrieved from https://www.eec.europa.eu/
[2] U.S. Trade Representative. (2021). Fact Sheet: U.S. Tariffs on Imports from China. Retrieved from https://ustr.gov/
[3] World Bank. (2021). Kazakhstan: Inflation Targeting and Monetary Policy. Retrieved from https://www.worldbank.org/
[4] National Bank of Kazakhstan. (2025). Inflation Rate in Kazakhstan Reaches 11.8% in July 2025. Retrieved from https://www.nationalbank.kz/
[5] International Monetary Fund. (2021). Kazakhstan: Selected Issues. Retrieved from https://www.imf.org/
[6] Beeline Kazakhstan. (n.d.). Tariff Plans. Retrieved from https://beeline.kz/
[7] Beeline Kazakhstan. (2021). Changes to Mobile Tariffs. Retrieved from https://beeline.kz/
[8] Statista. (2021). Mobile Phone Usage in Kazakhstan. Retrieved from https://www.statista.com/
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