Ferghana Valley, located in crossroads of three countries, is the most populated area in Central Asia. There is a source of regional inter-ethnic tensions due to water and land irrigation disputes, poverty, and lack of access to communication services. The Internet Exchange Point Project in the city of Osh in Kyrgyzstan is aimed to increase regional cross-border collaboration between stakeholders and the communication of people through increase of Internet affordability by lower internet service tariff plans up to 3 times, multiple growth of Internet traffic exchange in region, increase Internet penetration rate due to price reduction, better latency for international, and regional content sources.
IXP will help local small and medium ISPs minimize traffic costs and spend more on infrastructure rather than on internet traffic purchase. Establishing the IXP would greatly enhance the utility and value of the regional Internet and promote the growth of the digital economy. According to Terabit Consulting, “Improvement in ICT infrastructure yields: increased demand for the output of other industries (demand multiplier), new opportunities for production in other industries (supply multiplier), new goods and services for consumers (final demand). It also increases firms’ innovation capabilities and increases the probability of new products, innovations, and organizations.”