Kazakhtelecom completed the US$1.1 billion sale of its subsidiary, Mobile Telecom Service LLP, to Qatari Power International Holding (PIH) in a move to align with the Kazakh president’s orders to demonopolise the Kazakh mobile market.
Kazakhtelecom Board Chairman Bagdat Musin said: “As a result of this deal, today, three mobile operators (Tele2/ALTEL, Kcell, and Beeline) operating in Kazakhstan will be separated from each other to form a competitive market among mobile operators. This will have an impact on improving quality and establishing fair prices for the services provided.”
This deal has been in the making since February 2024, when Kazakhtelecom’s main shareholder, the Samruk-Kazyna fund, and PIH signed a cooperation agreement that included the purchase and sale of Mobile Telecom Service LLP.
Kazakhtelecom held significant market control through its ownership of the leading operator Kcell and its control of Tele2 and Altel via Mobile Telecom Service LLP. This dual ownership gave the company considerable influence, as it held the majority of mobile subscriptions in Kazakhstan.
The only major competitor to Kazakhtelecom was Veon’s Beeline Kazakhstan. Interfax reported that there had been discussions about removing Kcell from Kazakhtelecom’s control (it owns 51% of Kcell) to level the playing field.
