Kazakhstan’s largest telecommunications provider, Kazakhtelecom, has completed the sale of its subsidiary Mobile Telecom Service, which operates under the Tele2/Altel brands, to Qatari Power International Holding (PIH). The $1.1 bn deal, initially agreed upon in February 2024, marks a significant step in the Kazakh government’s efforts to demonopolize the mobile market, the company announced in a press release.
“This deal fulfills the Kazakh president’s directive to demonopolize the mobile market,” Kazakhtelecom Board Chairman Bagdat Mussin stated. “As a result, three mobile operators—Tele2/Altel, Kcell, and Beeline—will now operate independently, fostering competition. This will lead to improved service quality and fairer pricing for consumers.”
A Long-Awaited Move
The sale concludes years of discussions and delays surrounding the restructuring of Kazakhstan’s telecom sector. Initially slated for completion by the end of 2023, the process was delayed by a year, with the final transaction occurring in early 2025.
The government’s decision to remove one of the two major telecom operators—Tele2/Altel or Kcell—from Kazakhtelecom’s structure was driven by a need to create a competitive environment in the telecommunications market. Kazakhtelecom remains a dominant player, retaining a 51% stake in mobile operator Kcell.
In a LinkedIn post Mussin states, "As a minister, I always emphasized that the telecommunications sector in Kazakhstan was monopolized. The Head of State has also repeatedly mentioned the need to demonopolize key sectors of the economy. Today, I am pleased to share that JSC “Kazakhtelecom” has completed the sale of 100% of its stake in “Mobile Telecom Service” to the Qatari holding Power International Holding.
Power International Holding, as a major international player, will bring a new level of development to Kazakhstan’s telecommunications industry. In a truly competitive environment, operators will not only be compelled to lower prices but also to provide higher-quality services. This approach has already proven effective in other countries, where open markets drive innovation and enhance customer experience.
We are moving towards an open and competitive market where citizens and businesses benefit from fair competition."
Impact on the Market
The move is expected to transform Kazakhstan’s telecom industry. Mobile Telecom Service, established in 2004, has been a leader in high-speed 5G communications. With over 2,000 employees and more than 140 retail outlets, the company’s new ownership under PIH signals a new chapter in its operations.
Market analysts anticipate increased competition among the three mobile operators, which could lead to better service offerings and competitive pricing.
Strategic Partnership with Qatar
The sale also strengthens ties between Kazakhstan and Qatar. PIH’s acquisition highlights the growing economic relationship between the two nations, particularly in sectors like telecommunications and technology.
“This agreement not only represents a milestone for Kazakhstan’s telecom market but also underscores the country’s commitment to fostering international investment and collaboration,” Mussin added.
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